Persistent Systems Ltd. share price target

PSYS’ revenue growth of 4.2% QoQ CC was ahead of our optimistic estimates. Growth was led by the BFSI and technology verticals. Healthcare vertical has improved, post two quarters of muted growth from client-specific offshoring.

We maintain our BUY rating on the stock.

Revenue stood at INR 35,807 Mn, up 7.4% QoQ and 23.6% YoY, outperforming our estimate by ~2.7%, driven by consistent client additions and higher offshore volumes.

AI-Led Transformation for long-term differentiation: Persistent's AI-led transformation through its Sasva platform (filed 20 new patents), enterprise AI readiness offerings, & internal AI deployments is a key differentiator. With 50+ AI agents deployed & partnerships with Anthropic, the company is also embedding AI across delivery, legal, HR, finance, & supply chain. This positions Persistent well to capture next-gen digital transformation opportunities, drive...

Persistent Systems (PSYS) reported 2QFY26 revenue of USD406m (vs. est. USD404m), up 4.2% QoQ in USD terms and 4.4% in CC (est. +3.5%). EBIT margin stood at 16.3% (est. 15.7%).

Revenue: Persistent Systems Q1FY26 revenue came in at INR 33,336 Mn, up 21.8% YoY (+2.8% QoQ), in-line with our estimates, primarily driven by robust performance in the BFSI segment, with incremental contributions from Software, Hi-Tech, and Emerging Markets verticals, partially offset by softness in healthcare and Life Sciences.

The revenue performance (+3.3% QoQ) was tad below our estimates (+3.5% QoQ CC), margins at 15.5% were also slightly below our estimates of 15.7%. The momentum within BFSI and Hi-Tech continued, while Healthcare growth decelerated further and reported a decline of 1.9%. The delayed ramp up and right-shifting of resources have led to the decline in Healthcare vertical. The...

Revenue stood at $389.7 million, up 3.3% q-o-q in CC terms, missing our 4% estimate. EBIT margins declined ~10 bps q-o-q to 15.5%, missing our estimate of 15.9%.

We resume our coverage with a BUY rating on the stock.

Persistent Systems (PSYS) reported 1QFY26 revenue of USD390m (vs. est. USD392m), up 3.9% QoQ in USD terms and 3.3% in CC (est. +4.0%). EBIT margin stood at 15.5% (est. 15.8%).

We interacted with management of Persistent Systems to understand the company’s business strategy and growth prospects.

PSYS reported a robust operating performance in Q4. Revenue growth of 4.5% QoQ CC was in-line, while EBITM of 15.6% was ahead of our estimate. Growth was predominantly led by BFSI and Hi-Tech while HLS stood flat.

Delivers industry leading growth in FY25 and in 4QFY25 and maintains its aspiration of US$2bn revenue by FY27 (20% CAGR)

Persistent Systems (PSYS) reported a 4QFY25 revenue of USD375m, up 4.2% QoQ in USD terms (est. +3.8%) and 4.5% in CC (est. +4.0%). EBIT margin stood at 15.6% (est. 14.8%).

Revenue stood at $375.2 million, up 4.5% q-o-q in constant currency (CC), beating our estimates of 4% q-o-q growth in CC terms. Revenue in rupee terms stood at Rs. 3,242 crore, up 5.9% q-o-q/25.2 % y-o-y. EBIT margin improved ~70 bps q-o-q to 15.6% % but missed our estimate of 15.9%.

The revenue performance (+4.5% QoQ) was tad below our estimates (+5.2% QoQ CC), while margins were fairly in line. The momentum within Hi-Tech and BFSI accelerated in Q4, while Healthcare growth decelerated further. Healthcare growth is expected to deteriorate even further due to Medicaid funding cut and large deals assuming support phase in FY26. The management indicated that the recent rejig has elevated caution on decision making among few Healthcare clients. However, the outlook on Hi-Tech and BFSI remains...

Q3FY25 operating performance was a tad better than our estimate. Revenue growth of 4.6% QoQ CC was in-line, while EBITM of 14.9% was slightly ahead of our estimate. Unlike in previous few quarters, growth was broad-based across verticals/geographies

3QFY25 revenue/EBIT margin beat our sub-consensus estimate. It did not say discretionary demand has turned around but said it will deliver

Persistent Systems (PSYS) reported 3QFY25 revenue of USD360.2m, up 4.3% QoQ in USD terms (est. 3.9%) and 4.6% in CC. EBIT margin stood at 14.9% (est. 14.4%).