Persistent Systems’ share price crashed almost 5% in intraday trade on Wednesday, 22 April, a day after the company announced its March quarter (Q4FY26) results. Persistent Systems shares opened at ₹5,268.20 against its previous close of ₹5,335.30 and dropped 4.8% to an intraday low of ₹5,080.40.
Persistent Systems Q4 results
After market hours on 21 April, Persistent Systems said its consolidated profit after tax (PAT) for Q4FY26 jumped 33.7% year-on-year (YoY) to ₹5,292.6 million. The company’s revenue during the quarter jumped 25.1% YoY to ₹40,559.4 million.
The order booking for the quarter ended on March 31, 2026, was $600.8 million in total contract value (TCV) and $445.1 million in annual contract value (ACV).
The board of directors recommended a final dividend of ₹18 per share, translating to ₹40 per share for FY26 compared to ₹35 per share for FY25.
What should investors do?
Experts have largely maintained their previous views on the stock, as Q4 results are largely in line with estimates.
Brokerage firm JM Financial has maintained its “add” recommendation on the stock but raised the target price to ₹5,630 from ₹5,595 earlier, citing that Persistent’s Q4FY26 revenues and margins were largely in line.
“Revenue growth came in at 3.4% in constant currency (CC) QoQ versus the expectation of 3.6% CC QoQ. EBIT margins at 16.3% – inline versus expectations of 16.2%,” JM Financial said.
JM Financial highlighted that Persistent’s management remains cautiously optimistic on the macro environment.
“The focus will be on growth versus margins. BFSI or healthcare and life sciences will likely lead the growth in FY27,” said JM Financial.
“Valuations are at 36 times FY27 consensus EPS, pricing in the consistent performance on growth and margins versus peers over the last few quarters. We revise our EPS estimates marginally over FY27–28E and maintain a target multiple of 35 times September 2027,” said JM Financial.
Brokerage firm Motilal Oswal Financial Services maintained a buy call on the stock with a target price of ₹6,200, implying a 16% upside potential.
The brokerage firm builds in nearly 16% dollar revenue CAGR over FY26-28E for the company due to moderation in core growth.
“Along with gradual margin expansion, this translates into nearly 20-22% EPS CAGR, still among the stronger growth profiles in mid-tier IT, though lower than earlier expectations,” said Motilal Oswal.
Motilal has cut its estimates for Persistent Systems by nearly 4-5%, factoring in a soft Q4 exit and continued reinvestments in AI platforms and consulting capabilities.
“We now build in a more gradual margin expansion to nearly 16.7-16.8% over FY27-28E. We value Persistent Systems at 34 times FY28E EPS and maintain a buy with a revised target price of ₹6,200,” said the brokerage firm.
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Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
