Persistent Systems share price drops following Q2 earnings miss despite steady revenue

Persistent Systems shares fell by 3 per cent following the publication of its latest quarterly financial results, after a drop in profit and squeezed margins led to a 37 per cent shortfall against statutory earnings per share estimates.

Despite the profit miss, the IT services firm reported quarterly revenue of ₹47 billion, meeting market predictions and demonstrating continued demand across its core software and engineering services.

Earnings miss triggers analyst forecast revisions

Following the quarterly report, market analysts revised their future per-share earnings expectations downward while leaving long-term revenue projections intact.

The consensus forecast across 33 analysts now projects revenue of ₹187.6 billion in 2027, representing a 12 per cent improvement compared to the preceding twelve months. Per-share earnings for 2027 are now expected to reach ₹136, down from the earlier projection of ₹146.

Strong long-term revenue trajectory

Despite the reduction in earnings projections, analysts kept their average price target steady at ₹5,745 per share, indicating confidence that the temporary margin pressure will not undermine the company's core valuation. Individual price targets among analysts remain spread between a high of ₹6,772 and a low of ₹3,718.

Persistent Systems continues to expand significantly faster than the wider technology sector. The company is projected to achieve annualised revenue growth of 25 per cent through 2027, maintaining a pace consistent with its 22 per cent annual growth over the past five years. By comparison, the broader IT services industry is expected to grow at an annual rate of 6.3 per cent.

The stable revenue trajectory highlights the resilience of India's technology exporters, who continue to win global enterprise contracts and sustain double-digit growth even amid global economic uncertainty.