Persistent Systems Shares Decline 5% Following Q4 Earnings Release

Persistent Systems' Share Price Drops 4.8% Amid Q4FY26 Results

Persistent Systems' share price plummeted by almost 5% in intraday trade on Wednesday, April 22, a day after the company announced its March quarter (Q4FY26) results. The company's shares opened at ₹5,268.20, a decline from its previous close of ₹5,335.30, and dropped to an intraday low of ₹5,080.40.

The company's Q4FY26 results showed a significant jump in its consolidated profit after tax (PAT), which rose 33.7% year-on-year (YoY) to ₹5,292.6 million. The company's revenue during the quarter also 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).

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Brokerage firms JM Financial and Motilal Oswal Financial Services have maintained their previous views on the stock, with Q4 results largely in line with estimates. JM Financial raised its target price to ₹5,630 from ₹5,595 earlier, citing that Persistent's Q4FY26 revenues and margins were largely in line. Motilal Oswal Financial Services maintained a buy call on the stock with a target price of ₹6,200, implying a 16% upside potential.

JM Financial highlighted that Persistent's management remains cautiously optimistic on the macro environment, with a focus on growth versus margins. The brokerage firm also noted that valuations are at 36 times FY27 consensus EPS, pricing in the consistent performance on growth and margins versus peers over the last few quarters.

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.

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.

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