Live Terminal
Telegram

Persistent Systems stock slides 3% after Q2 profit slump, margin miss; brokerages divided on outlook

Share on WhatsApp Telegram
⚡ Instant Key Takeaways (TL;DR)
🎯
Core Development: Persistent Systems stock slides 3% after Q2 profit slump, margin miss; brokerages divided on outlook
📊
Market & Financial Impact: Persistent Systems shares fell sharply after its Q2 profit declined 27 percent sequentially and operating margins missed estimates. CLSA and JPMorgan retained bullish ratings, while Nuvama flagged valuation concerns and risks from the Nagarro acquisition.
💡
Actionable Insight: 🔴 Bearish Risk: Regulatory scrutiny, profit decline, or sell-off risk may create near-term volatility.

Persistent Systems shares fell more than 3 percent on Friday, after the IT services company's fiscal second quarter earnings disappointed on profitability, despite strong revenue growth. The stock declined 3.4 percent to Rs 5,640 in afternoon trade, after falling as much as 6 percent intraday. It was among the top midcap losers and one of only two declining constituents of the Nifty IT index, which gained 3.1 percent.

Persistent Systems shares have declined 10.2 percent so far in 2026, compared with an 11.7 percent fall in the Nifty 50. The company had a market capitalisation of approximately Rs 89,000 crore.

The company's consolidated net profit fell 27 percent sequentially to Rs 351.5 crore in the September quarter, partly affected by a one-off expense of Rs 185.34 crore associated with the Nagarro deal. Revenue increased more than 8 percent sequentially to Rs 4,664 crore.

EBIT margin contracted by 100 basis points to 15 percent, missing estimates of 15.5 percent, due to wage hikes, lower utilisation and deal-related amortisation. The company expects margins to recover towards its aspirational range of 16-17 percent.

Share Markets Live Updates | Sensex, Nifty, GIFT Nifty Today

📰
Official Publisher Attribution: This report is aggregated from Moneycontrol. ZeroLive provides live aggregation, automated sentiment synthesis, and exchange disclosure monitoring for retail market participants.
Read Original Full Coverage on Moneycontrol ↗
⚡
Get Breaking Stock Alerts & Q-Results on Telegram
Real-time 1200x675 image cards and financial filings delivered instantly.
Join @Zerolive_news ↗
Link copied to clipboard! ✅