Persistent Systems on Tuesday reported a 33.7% YoY surge in quarterly profit, while net profit for the full financial year 2026, which ended on March 31, 2026, rose over 33% YoY to Rs 1,865 crore.
Revenue from operations, meanwhile, increased 25% YoY to Rs 4,056 crore, supported by 24% YoY growth in the banking, financial services and insurance (BFSI) segment and 11% YoY growth in the software, hi-tech and emerging industries verticals. The company’s healthcare and life sciences vertical clocked 14% growth after lagging in the previous quarter. Revenue growth beat Street estimates of a 16-23% YoY rise.
Persistent Systems announces dividend
Along with the Q4 results, Persistent Systems announced a final dividend of Rs 18 per share with a face value of Rs 5 each, subject to shareholders’ approval. The record date to determine the eligibility of shareholders set to receive the payment is yet to be announced.
Persistent Systems booked deal wins totalling $600.8 million during the March quarter, lower than $674.5 million worth of deals in the previous three-month period. The contribution of its top 10 clients as a percentage of total revenue for the March quarter slipped to 42.1% from 43.7% in the December quarter, adding just one large client in the quarter.
At the end of December 2025, its total headcount stood at 27,502, an increase of 791 employees from the previous quarter and 2,908 from a year ago.
Nomura on Persistent Systems
Nomura said that Persistent Systems’ earnings were lower than its estimates, but deal wins were strong. “Persistent’s management noted that the deal wins and pipeline are broad-based and not restricted to a few clients. Management reiterated its near-term target of achieving $2 billion of revenue run-rate by FY27E, notwithstanding the current macro uncertainty. We expect USD revenue growth rate of 12.6-13.6% for FY27-28F,” it said.
The international brokerage highlighted that the company faced tailwinds from the favorable currency effect and operational efficiencies. However, these were negated by headwinds from advisory costs for corporate development and higher subcontractor expenses.
Nomura lowered its FY27-FY28 EPS estimates by around 2-4%, and lowered its target price to Rs 5,200 apiece from Rs 5,300 apiece, while maintaining its ‘Neutral’ rating. The latest target price implies a downside potential of more than 2% from the stock’s previous closing price of Rs 5,329.90 apiece on NSE. The international brokerage continues to prefer Coforge in the midcap IT space.
Motilal Oswal on Persistent Systems
Motilal Oswal maintained its ‘Buy’ rating on the stock with a target price of Rs 6,200 apiece, implying an upside potential of nearly 16% from Tuesday’s closing price. The domestic brokerage noted that the IT services company recorded the fifth straight quarter of deceleration in revenue growth excluding software licenses, although it remains one of the fastest-growing IT services companies in its coverage.
“Management reiterated that growth reinvestment, particularly in AI platforms, consulting, and capability buildout, remains the priority. While the 16-17% margin band is achievable, near-term expansion could be capped by continued investments. We estimate EBIT margin of 16.7%/16.8% for FY27/FY28,” Motilal said.
The domestic brokerage cut its estimates by approximately 4-5%, factoring a soft Q4 exit and continued reinvestments in AI platforms and consulting capabilities. “Management acknowledged ongoing geopolitical headwinds (Middle East conflict, tariff uncertainty) but noted minimal direct revenue exposure to the affected regions,” it highlighted.
Choice Institutional Equities on Persistent Systems
Choice Institutional Equities said that Persistent Systems delivered a steady quarter, supported by strong growth in BFSI and HLS, resulting in resilient revenues and healthy profitability. “Deal momentum moderated sequentially owing to seasonality, while margin saw expansion driven by tailwinds, which were partially offset by re-investments in AI-led capabilities. The management remains cautiously optimistic, focusing on PE-led opportunities and disciplined growth, supported by improving attrition and steady shareholder returns,” it said.
The domestic brokerage expects the company’s revenue, EBIT, and PAT to grow at a CAGR of 20%, 23.7%, and 23.4%, respectively, over FY26–29. “Accordingly, we revise our target price to Rs 6,200, implying a 35x P/E multiple, while maintaining our BUY rating,” it added.
HDFC Securities on Persistent Systems
HDFC Securities maintained its ‘Add’ rating on Persistent Systems with a target price of Rs 6,240 per share. This implies an upside potential of more than 17% from the stock’s previous closing price.
The domestic brokerage said that the company’s strong AI-led positioning, supported by a healthy deal pipeline, is underpinning growth visibility, ET Now reported.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)