Persistent Systems shares dropped 5.03% to Rs 5,544 on Friday on BSE after the IT services company reported strong revenue growth in Q2FY27. While the company reported a solid beat on top-line growth, profitability took a hit due to elevated costs and integration-related expenses from its Nagarro acquisition.
Consolidated revenue rose 7.8% quarter-on-quarter in constant currency to $487.6 million, beating market expectations. EBIT margin, however, contracted 100 basis points QoQ to 15%, missing estimates. Profit after tax fell 27.2% QoQ to Rs 351.51 crore, impacted by higher amortisation costs from large deal execution and one-time acquisition expenses.
