{
  "id": 14898281,
  "title": "Persistent Systems shares slide 5% despite Q2 revenue growth. Buy, sell or hold?",
  "url": "https://urgent.news/2026/10/16/persistent-systems-shares-slide-5-despite-q2-revenue-growth-buy-sell",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-16T05:19:41.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/stocks/news/persistent-systems-shares-slide-5-despite-q2-revenue-growth-buy-sell-or-hold/articleshow/134983124.cms"
  },
  "original_language": "en",
  "account": "Persistent Systems shares slipped 5.03% to Rs 5,544 on BSE following the IT services company's announcement of robust Q2FY27 revenue growth. Despite strong top-line growth, the company's profit margins struggled due to increased costs and integration expenses from its acquisition of Nagarro. While revenue rose 7.8% quarter-over-quarter in constant currency to $487.6 million, EBIT margin contracted to 15%, missing estimates. Profit after tax declined 27.2% quarter-over-quarter to Rs 351.51 crore. Total contract value was $633.5 million, with some delay in client decision-making at the quarter's end due to macro-related uncertainties. CEO Sandeep Kalra highlighted 26 consecutive quarters of growth and a 7.8% quarter-over-quarter increase, but noted margin pressure from wage hikes, lower utilization, and amortisation costs linked to a significant customer deal. Analysts maintained mixed views, with Nomura retaining a Neutral rating and raising the target price to Rs 5,600, while JPMorgan and CLSA kept their Overweight and High Conviction Outperform ratings, respectively, with varying target prices.",
  "summary": "Persistent Systems shares fell 5% despite 7.8% sequential constant-currency revenue growth in Q2FY27, as margin contraction and a sharp decline in profit weighed on sentiment. Brokerages remained divided on the stock amid valuation concerns and acquisition-related costs.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Hindu BusinessLine",
        "title": "Persistent Systems to raise up to ₹8,000 crore via bonds",
        "url": "https://urgent.news/2026/10/16/persistent-systems-to-raise-up-to-8-000-crore-via-bonds",
        "published": "2026-10-16T08:31:54.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}