Persistent Systems share price tumbles 5% after Q2 results 2026 | What should investors do? Check target price, rating

However, reported PAT declined 25.4% to ₹351.51 crore after the company incurred an exceptional expense of ₹185.34 crore related to its proposed acquisition of Nagarro.Revenue from operations increased 20.8% year-on-year in constant currency terms. In rupee terms, revenue rose 30.3% to ₹4,663.9 crore, while dollar-denominated revenue grew 20% to $487.6 million.On a sequential basis, revenue increased 8.4% in rupee terms and 7.8% in US dollar terms, marking the company's 26th consecutive quarter of revenue growth.Meanwhile, earnings per share (EPS) declined 26% to ₹22.40.

Earnings before interest and tax (EBIT) rose 19.5% year-on-year to ₹697.72 crore, although the EBIT margin contracted to 15% from 16.3% in the corresponding quarter last year. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 26.4% year-on-year to ₹864.4 crore. However, the EBITDA margin moderated to 18.5% from 19.1% in Q2 FY26. Persistent Systems share price - Should you buy, sell or hold?

Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, believes that Persistent Systems shares look positive from a trading perspective. Investors can consider the stock with a stop-loss at ₹5,380. “The stock could move towards the target prices of ₹5,825, ₹5,950 and ₹6,150 or higher, provided the bullish momentum sustains. Traders should maintain strict stop-loss discipline and monitor price action before taking positions,” Ojha said.

Meanwhile, brokerage firm Choice Broking has assigned ‘add’ rating to the stock with a target price of ₹6,120, valuing the stock at 30x average FY28&29E EPS. “PSYS trades at a ~20% premium to Coforge, despite a comparable growth profile, limiting scope for further multiple expansion. We assign ‘ADD’, with execution and acquisition integration key monitorables,” the firm said. On the other hand, Gaurav Garg, Head - Research, Lemonn, believes that the stock has faced selling pressure after rejection near ₹6,000 and is trading around ₹5,657, as per the chart.

“The ₹5,425– ₹5,475 zone is an important support area, while ₹5,950– ₹6,000 remains a key resistance zone. A sustained breakout above ₹6,000 could improve sentiment, whereas a breakdown below ₹5,425 may trigger further downside. I would recommend holding with appropriate risk management for existing investors, while fresh investors should wait for price stabilisation and clearer signs of earnings improvement before entering,” Garg said.