Persistent Systems Ltd. share price target

Persistent reported strong revenue growth of 7.8% QoQ CC and 20.8% YoY CC, led by a large Hitech deal ramp-up and healthy growth in BFSI. Healthcare Lifesciences remained flat for the second consecutive quarter.

Persistent Systems delivered a resilient Q2FY27, with revenue growing 20.0% YoY and 7.8% QoQ to USD 487.6 Mn, supported by 20.8% constant-currency growth. This marked its 26th consecutive quarter of sequential growth.

We maintain our BUY rating on the stock.

PSYS has rarely cited macro as the reason for a weakish TCV/ACV. It did post 2Q as decisions apparently got delayed

Strong trailing deal bookings support revenue visibility despite quarterly moderation: Quarterly TCV and ACV declined 44.7% QoQ (up 4% YoY) and 10.4% QoQ (up 7.4% YoY). While TCV moderated from US$1.15 bn in Q1FY27 (which included a US$650 mn large deal), management attributed the moderation partly to deal slippages & slower decision-making amid macroeconomic & Middle East uncertainty and on a TTM basis, TCV and ACV bookings grew a healthy 36.3% and 21.9% YoY, respectively. We expect the reported US $ revenue to grow at...

Persistent Systems (PSYS) reported a 2QFY27 revenue of USD488m (vs. est. USD475m), up 7.8% QoQ in USD terms and 7.8% in CC terms (est. +5%). EBIT margin stood at 15% (vs. our est. of 15.6%).

FY27 revenue is expected to track 18 to 20% growth in constant currency, supported by execution on the USD 650M+ strategic agreement, balanced vertical momentum across Healthcare, BFSI, and Technology, and healthy underlying ACV bookings.

Persistent (PSYS)’s Q1FY27 performance marked a continued trend of industry-leading organic revenue growth, up 4.1% QoQ CC and strong deal wins (TCV/ACV grew 120%/39% YoY).

Persistent Systems (PSYS) reported 1QFY27 revenue of USD452.4m (vs. est. USD449m), up 3.8% QoQ in USD terms and 4.1% in CC (est. +3%). Adj. EBIT margin stood at 16% (est. 16.1%).

We expect Persistent Systems to report a strong Q1FY27 with USD revenue of USD 449.6 Mn (+3.1% QoQ, +15.4% YoY), reflecting continued execution on large deal ramp ups and strength across BFSI and Healthcare verticals.

Currently, the company is trading at 27x/23x P/E multiples of FY27E/FY28E. We value the company at 34x FY28E EPS and maintain our BUY rating on the stock with an unchanged TP of Rs 6,270/share, implying an upside of 46% from the CMP.

Acquisition to be funded by bridge loan facility of EUR 1.4 bn The investments (USD 1.6bn) in Nagarro is largely complementing and scaling the core business dynamics of PSYS, in terms of expanding new verticals and geographies, where PSYS has marginal presence. More importantly, the target entity shares a similar culture and service lines to PSYS' core business, which is a positive in our view. However, we believe there is a slight business risk which comes along with the vertical presence, barring 2-3 verticals, the near-term growth within other business units remains a challenge (mid-single-digit). PSYS is largely pivoted on the build side...

Transaction Overview: Persistent (via German subsidiary Galaxy Germany Holding SE / BidCo) announced voluntary public takeover offer for all shares of Nagarro SE (Frankfurt-listed) at EUR 81/share in cash (~140% premium to its undisturbed closing price on June 25, 2026, & ~94% premium to 3M VWAP). It has already secured binding 21% stake from Nagarro's largest shareholder Lantano Beteiligungen GmbH (Carl-Georg Drschmidt) while Nagarro's management has expressed intent to tender its shares (~13-14%), taking effective committed stake to ~3540%. The minimum acceptance threshold is...

On 27 June 2026, PSYS announced a very large acquisition (Nagarro - 75% of current revenue) and a large net new deal

Persistent Systems announced two strategic developments: the acquisition of Nagarro for an enterprise value of €1.27b, and a new USD650m+ services contract over 6.5 years with an existing US-based technology customer.

We expect BFSI to be the strongest vertical and could lead growth in FY27E, followed by healthcare and hitech, although SaaS remains relatively softer, AI and license revenue, coupled with Sasva and iAura, continue to provide PSYS with a competitive edge over the market for now.

FY27 revenue run-rate target of $2 Billion. Al adoption expected to accelerate across clients. EBIT margin aspiration of 16-17%. Continued growth across BFSI, Healthcare & Technology.

AI-led strategy driving differentiation and deal momentum: The company's AI-first approach, built on engineering hyper productivity, business process optimization and enterprise data readiness, is gaining strong traction across clients. Persistent has built a differentiated ecosystem with 500+ AI agents and partnerships across hyperscalers, strengthening its positioning in next-gen deals. Strong ACV growth of 27.1% YoY and continued large deal wins reflect increasing relevance in AI-led transformation programs. Management's continued investments in AI capabilities and platforms are expected to drive...

Persistent Systems’ outlook is defined by its seamless transition into a premier, AI-led digital engineering powerhouse.

Persistent posted robust results for another quarter with 3.4% q/q cc revenue growth to $436mn aided by a healthy order book (LTM TCV up 14.4% y/y) along with continued large-account mining and resilient growth across major client buckets, with all customer buckets growing at roughly 19% to 21% y/y in FY26.