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7h ago

Persistent Systems Jumps After Q2 Beat as Bookings and Margins Strengthen

Management flagged a temporary Q3 margin drag from October 1 wage hikes with plans to offset part through operational savings.

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The company’s profitability also witnessed a notable improvement. EBIT margins expanded by 80 basis points to 16.3 per cent, beating JM Financial’s forecast of 16.0 per cent.

Overview

  • The company posted Rs 471.4 crore in net profit, up about 11% sequentially, on revenue of Rs 3,580.7 crore, up 7% quarter on quarter.
  • Quarterly order bookings totaled $609.2 million in TCV and $447.9 million in ACV, with ACV up 28% year on year and a modest dip in net new TCV noted by JM Financial.
  • EBIT margin expanded 80 basis points to 16.3%, helped by lower software‑license costs, favorable forex and planned offshore transitions.
  • Shares rose as much as 6–7% in early trade after the results topped Street estimates and highlighted resilient demand.
  • JM Financial called it “a near‑perfect quarter,” maintained a Buy and lifted its target to Rs 6,140, while Bloomberg shows 24 of 42 analysts with Buy and a Rs 5,889 consensus target.