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Persistent Systems Shares Drop 9% Despite Double-Digit Q1 Growth

Analysts dial back targets on cautious growth outlook after management reaffirmed a $2 billion revenue goal

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Overview

  • Persistent Systems reported Q1 FY26 net profit of Rs 424.93 crore, up 39 percent year-on-year, and revenue of Rs 3,333 crore, up 21.8 percent.
  • Dollar revenue reached $389.7 million, marking an 18.8 percent year-on-year increase.
  • The stock fell more than 9 percent intraday to trade below key moving averages on BSE and NSE due to valuation pressures.
  • Management reiterated its medium-term target of achieving $2 billion in revenue by FY27, highlighting pricing, utilization and sales investments as key levers.
  • Brokerages issued mixed ratings, with Nomura lowering its FY26 growth forecast to 16.6 percent and target to Rs 5,510 under a Neutral call, JM Financial trimming its target to Rs 6,720 while retaining a Buy, Motilal Oswal maintaining Buy at Rs 6,800, and Choice Equities projecting margins of 16.3 percent by FY27.