Street View- Persistent Systems falls as analysts flag softer FY27 outlook, margin miss despite Q4 growth

Persistent Systems

22/04/2026 07:27

** Shares of India's Persistent Systems PERS.NS fall 4.32% to 5103.30 rupees; biggest intraday pct drop since February 20

** Co posted 33.6% y/y increase in Q4 profit to 5.29 billion rupees, revenue from ops rose 25.1% y/y

SOFTER FY27 OUTLOOK, MARGIN MISS OFFSET STRONG GROWTH

** CLSA ("high-conviction outperform", PT: 6520 rupees) cuts FY27/28 EPS estimates by 6%-7% after company guided for its $2 bln revenue run-rate only by 4QFY27, later than earlier expectations

** Nomura ("neutral", PT: 5200 rupees) trims FY27-28 EPS estimates by ~2%-4% after a modest revenue and margin miss in the quarter; says stock's rich valuation limits upside despite strong deal wins and pipeline visibility

** UBS ("buy", cuts PT to 6240 rupees from 6280 rupees) says revenue growth was slightly below expectations and EBIT margin missed estimates due to higher consulting, subcontracting and license costs, though deal momentum remained healthy

** HSBC ("hold", raises PT to 5755 rupees from 5675 rupees) says FY27 outlook appeared softer than expected and valuation remains steep at roughly double sector averages, limiting further upside despite sector-leading growth

(Reporting by Surbhi Misra in Bengaluru)

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