Persistent faces a reality check

Weak Links

- Harsha Jethmalani

Persistent Systems Ltd's revenue growth lost momentum in the June quarter (Q1FY26) amid client-specific delays and subdued macroeconomic conditions.

Against a run rate of over 4% in the preceding four quarters, constant currency revenue for India's ninth largest information technology services company grew 3.3% in Q1, missing analysts' expectations.

While Persistent Systems' banking, financial services and insurance (BFSI), software and hi-tech segments drove growth, healthcare and life science revenue declined sequentially. The healthcare segment faces headwinds due to the US's tariff on China, impacting medical equipment manufacturers.

Healthcare, a key growth driver for Persistent lately, is likely to rebound, the management said, adding that BFSI would continue to anchor growth and that the hi-tech segment is expected to remain stable.