Persistent Systems share price tumbles 5% after Q2 results 2026 | What should investors do? Check target price, rating
Persistent Systems share price crashed over 5% in Friday's trading session after the company reported its financial results for the September quarter FY27. The stock opened at ₹5,600 per share today, as compared to previous close of ₹5,840 on Thursday and touched an intraday low of ₹5,492 on 16 October.
Persistent Systems reported a 5% year-on-year rise in consolidated profit after tax (PAT), excluding exceptional expenses, to ₹495.15 crore in the second quarter of FY27 on Thursday, October 15. However, reported PAT declined 25.4% to ₹351.51 crore after the company incurred an exceptional expense of ₹185.34 crore related to its proposed acquisition of Nagarro.
Revenue from operations increased 20.8% year-on-year in constant currency terms. In rupee terms, revenue rose 30.3% to ₹4,663.9 crore, while dollar-denominated revenue grew 20% to $487.6 million.
On a sequential basis, revenue increased 8.4% in rupee terms and 7.8% in US dollar terms, marking the company's 26th consecutive quarter of revenue growth.
Meanwhile, earnings per share (EPS) declined 26% to ₹22.40. Earnings before interest and tax (EBIT) rose 19.5% year-on-year to ₹697.72 crore, although the EBIT margin contracted to 15% from 16.3% in the corresponding quarter last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 26.4% year-on-year to ₹864.4 crore. However, the EBITDA margin moderated to 18.5% from 19.1% in Q2 FY26.
Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, believes that Persistent Systems shares look positive from a trading perspective. Investors can consider the stock with a stop-loss at ₹5,380.
“The stock could move towards the target prices of ₹5,825, ₹5,950 and ₹6,150 or higher, provided the bullish momentum sustains. Traders should maintain strict stop-loss discipline and monitor price action before taking positions,” Ojha said.
Meanwhile, brokerage firm Choice Broking has assigned ‘add’ rating to the stock with a target price of ₹6,120, valuing the stock at 30x average FY28&29E EPS. “PSYS trades at a ~20% premium to Coforge, despite a comparable growth profile, limiting scope for further multiple expansion. We assign ‘ADD’, with execution and acquisition integration key monitorables,” the firm said.
On the other hand, Gaurav Garg, Head - Research, Lemonn, believes that the stock has faced selling pressure after rejection near ₹6,000 and is trading around ₹5,657, as per the chart.
“The ₹5,425– ₹5,475 zone is an important support area, while ₹5,950– ₹6,000 remains a key resistance zone. A sustained breakout above ₹6,000 could improve sentiment, whereas a breakdown below ₹5,425 may trigger further downside. I would recommend holding with appropriate risk management for existing investors, while fresh investors should wait for price stabilisation and clearer signs of earnings improvement before entering,” Garg said.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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HomeMarketsStock MarketsPersistent Systems share price tumbles 5% after Q2 results 2026 | What should investors do? Check target price, rating
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