New Delhi, Oct. 16 -- Persistent Systems Ltd is handling the muted demand scenario in the IT sector well. In the September quarter (Q2FY26), the tier-2 company's sequential constant currency revenue grew 4.4%, exceeding the consensus estimate of 3.5%. This pushed the stock up more than 8% in the past two days. Growth was broad-based, led by momentum in the banking, financial services, and insurance (BFSI) vertical, healthcare and the Europe geography.

After a muted first quarter, deal wins gained traction in Q2FY26, aiding revenue visibility. The trailing 12-month total contract value (TCV) rose 15% year-on-year to $609 million, implying a 1.5x book-to-bill ratio, while quarterly annual contract value (ACV) bookings grew 28%.

Given the ...