Persistent Share Price Rises After Strong Q1 Results

Introduction

Persistent Systems, India’s leading digital engineering and IT services company, has announced its Q1FY26 results showcasing robust financial performance. The company’s 39% YoY jump in PAT and resilient operational metrics have driven bullish sentiment in the market.

This article explores the Persistent share price trends, detailed quarterly results, expert recommendations, and what investors can expect in the upcoming quarters.

Persistent Q1 Results 2025 Highlights

Revenue and Profit Growth

Revenue: ₹2,580 crore (up from ₹2,321 crore last year, ~11.1% growth)
Net Profit: ₹292 crore, marking a 39% YoY increase
EBITDA Margin: Expanded to 19.3% from 18.7% YoY
Attrition Rate: Declined marginally to 14.2%, indicating stability in workforce management

Key Client Wins and Pipeline

Persistent secured strategic deals across BFSI, healthcare, and hi-tech verticals. The management remains confident of maintaining double-digit growth momentum for FY26.

Impact on Persistent Share Price

Recent Stock Performance

Persistent share price surged by 2.5% intraday post Q1 results announcement, closing at ₹4,926 on NSE.
The stock has delivered ~22% returns in the last 6 months, outperforming the Nifty IT index.

Market Reaction

Investors welcomed the earnings beat despite global macro uncertainties. Analysts believe strong demand for digital transformation services continues to drive Persistent’s growth trajectory.

Expert Analysis and Brokerage Targets

Kotak Institutional Equities

Rating: ADD
Target Price: ₹5,150
Notes robust execution and deal wins but expects near-term margin pressures due to wage hikes.

ICICI Securities

Rating: BUY
Target Price: ₹5,400
Highlights Persistent as a key beneficiary of enterprise cloud adoption and generative AI implementation.

Motilal Oswal

Rating: Neutral
Target Price: ₹5,000
Cites high valuations as a reason for caution despite healthy business outlook.

Technical Analysis: Support and Resistance

Levels	Price (₹)
Immediate Support	4,800
Strong Support	4,600
Resistance Level	5,100
Next Target	5,250

Traders are advised to watch for a decisive breakout above ₹5,100 to initiate fresh long positions.

Growth Drivers for Persistent Systems

Digital Transformation Demand:
Enterprises are investing heavily in cloud migration, data engineering, and AI-led services.
Strong Deal Pipeline:
With consistent deal wins in healthcare and BFSI, Persistent maintains revenue visibility for upcoming quarters.
Focus on High-Margin Services:
Expansion in hi-tech and IP-led solutions supports margin stability.

Risks and Concerns

Global IT Spending Cuts: Macro uncertainties in the US and Europe could impact new deal closures.
Rupee Appreciation: Strong INR can affect export margins.
High Valuation Risk: Persistent is trading at premium multiples compared to peers, posing correction risk in market downturns.

Future Outlook

Management remains positive about FY26 growth with continued investments in AI solutions and employee skill upgradation. The company targets maintaining mid-teens EBITDA margin despite wage inflation headwinds.

Investors with a long-term horizon can consider buying on dips, while traders should closely monitor resistance levels for technical entries.

FAQs

1. What is the current share price of Persistent Systems?

As of the latest close, Persistent share price is ₹4,926 on NSE.

2. Why is Persistent share price rising?

The share price surged due to better-than-expected Q1 results, strong deal wins, and optimistic management commentary.

3. Should I buy Persistent shares now?

Brokerages remain positive but advise caution due to high valuations. Long-term investors can accumulate on dips.

4. What are Persistent’s growth prospects for FY26?

The company expects double-digit revenue growth, driven by cloud, digital engineering, and AI services demand.

Helpful Resources

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Conclusion

Persistent Systems has delivered a stellar Q1 performance, reinforcing its position among India’s top mid-cap IT stocks. While valuations remain rich, strong demand tailwinds and consistent execution make it a promising stock for long-term investors.