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Persistent Systems Q1 FY26 Results: Revenue Surges 21.78% YoY, PAT Jumps 38.68%

 

Persistent Systems Ltd., a leading global IT services and solutions provider, has delivered an outstanding performance in its Q1 FY26 results, reinforcing its position as a key player in the technology sector. The company reported a consolidated revenue of ₹3,333 crore, marking a 21.78% year-over-year (YoY) increase from ₹2,737 crore in Q1 FY25 and a 2.82% quarter-over-quarter (QoQ) rise from ₹3,242 crore in Q4 FY25. Profit after tax (PAT) soared to ₹424.93 crore, up 38.68% YoY from ₹306.41 crore and 7.37% QoQ from ₹395.76 crore, driven by higher other income and robust operational efficiency. These results underscore Persistent Systems’ strong growth momentum and strategic execution in a competitive market.

Key Financial Highlights of Q1 FY26

  • Revenue Growth: Consolidated revenue reached ₹3,333 crore ($389.7 million), reflecting a 21.78% YoY increase from ₹2,737 crore in Q1 FY25 and a 2.82% QoQ rise from ₹3,242 crore in Q4 FY25. In dollar terms, revenue grew by 18.8% YoY, highlighting strong demand for the company’s services.

  • Profit After Tax (PAT): PAT surged to ₹424.93 crore, up 38.68% YoY from ₹306.41 crore in Q1 FY25 and 7.37% QoQ from ₹395.76 crore in Q4 FY25, bolstered by higher other income and operational improvements.

  • EBIT Performance: Earnings before interest and tax (EBIT) climbed 34.28% YoY to ₹517.8 crore, with a 2.5% QoQ increase, reflecting effective cost management and operational leverage.

  • Order Bookings: The company reported a robust order booking of $520.8 million in total contract value (TCV) and $385.3 million in annual contract value (ACV), signaling a strong pipeline for future growth.

  • Dividend: The board approved a final dividend of ₹15 per share, bringing the total dividend for FY25 to ₹35 per share, subject to shareholder approval at the 35th Annual General Meeting held on July 21, 2025.

What Fueled Persistent Systems’ Strong Performance?

Persistent Systems’ impressive Q1 FY26 results were driven by strong demand across key verticals such as Banking, Financial Services, and Insurance (BFSI), healthcare, and hi-tech, which collectively contributed to revenue growth. The company’s focus on digital engineering, cloud computing, AI-driven solutions, and enterprise modernization has resonated well with global clients, with North America accounting for approximately 80% of revenue, followed by Europe (10%) and India (9%).

The higher other income in Q1 FY26 played a pivotal role in boosting profitability, alongside improved operational efficiencies. The company’s EBIT margin expanded to 15.6%, up from 14.5% in Q1 FY25, reflecting disciplined cost management and scalability. Strategic acquisitions, such as the recent acquisition of Arrka for ₹14.4 crore in September 2024, have strengthened Persistent’s capabilities in data privacy management, further enhancing its service portfolio.

Persistent Systems’ partnerships, including a tripartite MoU with BEL and Metamind Systems for AI and cybersecurity solutions, have bolstered its innovation pipeline, positioning it as a leader in next-gen technology services. The company’s focus on platforms like WaveMaker (low-code development) and NuoDB (distributed SQL database) continues to drive client value.

Persistent Systems: A Leader in the IT Sector

Founded in 1990 by Dr. Anand Deshpande, Persistent Systems is headquartered in Pune, India, and operates across 21 countries, serving clients in BFSI, healthcare, and hi-tech sectors. With a market capitalization of approximately ₹87,667 crore as of Q1 FY26, the company has delivered consistent growth, with a 21.6% YoY revenue increase and 28% YoY PAT growth for FY25. Its stock has surged 59.49% over the past year and 188.82% over three years, outperforming the Nifty IT index.

The company’s promoter holding stands at 30.6%, with foreign institutional investors (FIIs) and domestic institutional investors (DIIs) holding significant stakes, reflecting strong investor confidence. The P/E ratio of 78.4 and P/B ratio of 15.17 as of May 2025 indicate a premium valuation, justified by its strong growth trajectory and industry-leading margins.

Market Sentiment and Stock Performance

Persistent Systems’ stock closed at ₹5,605 on July 23, 2025, down 1.90% from the previous close of ₹5,713.80 on BSE, with a market cap of ₹87,667 crore. The stock touched an intraday high of ₹5,774.50 and a low of ₹5,567.50, remaining well above its 52-week low of ₹3,232.05 but below its 52-week high of ₹6,788.90. Despite the slight dip, the stock has delivered a 60.14% return over the past year, significantly outpacing the Nifty IT index’s 11.21% gain.

Analyst sentiment remains positive, with 33 analysts covering the stock, of which 7 recommend a Strong Buy, 9 recommend a Buy, and 7 suggest a Hold, with an average target price of ₹5,594.7, indicating a slight downside from the current price of ₹5,955 as of June 2025.

Looking Ahead: A Bright Outlook for FY26

Persistent Systems is poised for sustained growth, with management projecting a $2 billion revenue target by FY27, driven by its AI-led platform strategy and strong order bookings. The company’s focus on BFSI, healthcare, and hi-tech verticals, combined with its investments in AI, cloud, and cybersecurity, positions it to capitalize on global digital transformation trends. The integration of recent acquisitions like SCI and Shree Partners is expected to further enhance its payments and hi-tech offerings.

With a low debt-to-equity ratio of 0.00 as of FY25 and a return on equity (ROE) of 22.15%, Persistent Systems demonstrates financial resilience and efficient capital utilization. The company’s strong order pipeline and client wins across key geographies signal a robust outlook for FY26.

Conclusion

Persistent Systems Ltd.’s Q1 FY26 results highlight its exceptional growth, with 21.78% YoY revenue growth to ₹3,333 crore, 38.68% YoY PAT growth to ₹424.93 crore, and a robust order booking of $520.8 million. The company’s strategic focus on digital transformation, AI, and cloud solutions, coupled with higher other income and operational efficiencies, has driven its stellar performance. With a strong market position, premium valuation, and ambitious growth targets, Persistent Systems remains a top pick for investors seeking exposure to the IT services sector.

For the latest updates on Persistent Systems’ financial performance and stock price, visit trusted platforms like Moneycontrol, Economic Times, or NSE/BSE websites.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.

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