Persistent Systems Q1 Results: Persistent Systems kicked off Q1 FY26 with revenues at ₹33,336 crore (USD 389.7 mn), marking YoY gains of ~21.8% and a sequential growth of 2.8% . The company’s PAT surged 38.7% YoY to ₹4,249 crore, reflecting robust bottom-line growth.
However, margins showed signs of compression: the consolidated EBIT margin eased slightly to 15.5%, compared to 15.6% consensus, even as Rupee revenue grew 2.8%.
🔍 Margin Pressure – Nibbles or Warning?
While Persistent delivered its 21st consecutive quarter of revenue growth, analysts on StockTwits flagged the margin dip as a key watch point. SEBI-registered experts note it’s trading near support around ₹5,400–5,650—below this, the downside could stretch to ₹4,400–4,550.
🤝 Deal Wins & Strategic Moves
The company secured Total Contract Value (TCV) wins of USD 520.8 million and annual contract value of USD 385.3 million during the quarter. These deals span legacy IT modernization to AI-drive platform services, reinforcing Persistent’s position in high-growth segments.
⚡ Market Snapshot & Valuation
Persistent boasts a five-year revenue CAGR of ~25% and net margins of roughly 11.7%. The company remains virtually debt-free, with a steady ~39% dividend payout. Nevertheless, at ~14x book value, it trades at a premium, which may cap the short-term upside.
🧭 What Investors Watch Now
- Margin trend: Will the sub-15.5% margin hold as furlough of cost efficiencies continues?
- Share price action: A breach below ₹5,400 could push prices down, while reclaiming ₹6,185 may spark renewed momentum.
- Deal execution: Sustained conversion from TCV to revenue and beat-or-miss in upcoming quarters will be key.
✅ Final Take
Persistent Systems Q1 results showcase resilient growth and deal strength, yet margin softness tempers the euphoria. For investors, staying alert to execution, cost control, and market response post-results will be essential.
Investors should review the full Q1 presentation on Persistent’s official site and monitor technical support levels before making portfolios adjustments.
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