Persistent Systems shares fall 3% after Q1 net profit down 8.7% QoQ to Rs 483 crore

Persistent Systems shares slipped 3% in early trade on August 3 after the IT services company reported a mixed set of earnings for the June quarter (Q1 FY27). While revenue posted steady sequential growth, profitability weakened as margins contracted sharply, disappointing investors.

On a consolidated basis, net profit declined 8.7% quarter-on-quarter to Rs 483 crore from Rs 529 crore. Revenue increased 6.1% QoQ to Rs 4,303 crore, compared to Rs 4,056 crore in the previous quarter.

The company's operating performance came under pressure during the quarter. EBIT fell 11.8% sequentially to Rs 582 crore from Rs 659 crore, while the EBIT margin narrowed 280 basis points to 13.5% from 16.3%, indicating higher costs and weaker operational efficiency.

As of 10:48 am, Persistent Systems shares were trading lower by around 3%, with the stock moving between an intraday low of Rs 5,319.50 and a high of Rs 5,533.50. The stock opened at Rs 5,533.50, compared to its previous close of Rs 5,549.00, while live trading volume stood at 4,96,864 shares.

Despite healthy revenue growth, the sharp decline in margins and profit weighed on investor sentiment, triggering selling pressure in the stock. Persistent Systems has touched a 52-week high of Rs 6,599.00 and a 52-week low of Rs 4,244.50.