16-Oct-2026 08:20:07
JPM on Persistent ; OW, TP Rs 6400
2Q mixed with a beat on revenues while margins missed Revenues grew 7.8% CC QQ led by large tech deal ramp-up and also winning an in-vendor consolidation exercise at a large BFS client. Overall deal TCV was soft at 4% YY, but it highlighted that some deal closures slipped to 3Q due to delays in client decision making in the last few weeks of the quarter stemming from macro-related uncertainty. It is confident of broad-based growth going forward on back of deal wins and a healthy pipeline. Ebitda margin was flat and came in line, but Ebit margin declined 100bps QQ to 15% due to higher amortization costs from large tech deal products takeover that will likely continue going forward, leading us to cut margins by 40-60bps driving 2-4% cuts to adj EPS
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