Persistent Systems Ltd logo

Persistent Systems Ltd

PERSISTENT NSE

Persistent Systems provides software engineering and strategy services to help companies implement and modernize their businesses. It has its own software and frameworks with pre-built integration and acceleration [1]. It also has partnership with providers such as Salesforce and AWS [2].

AI Verdict: HOLD Confidence: 5%

Persistent Systems demonstrates exceptional growth with 35.9% profit CAGR over 5 years and 25% ROE consistency, but the stock's 21% decline over the past year and elevated valuation at 40.8x PE with 9.72x price-to-book suggest the market is repricing risk. With 58.8% analyst buy ratings but 29.4% sell ratings, conviction is split.

Key Fundamentals

MidcapComputer Software & ConsultingInformation Technology
Market Cap
₹77,447 Cr
Volatility
Moderate
P/E Ratio
40.78
EBITDA
₹2,707 Cr
Return on Equity
22.06%
Debt to Equity
0.07
Book Value
₹496.85
EPS
₹76.02
52W High
₹6,599
52W Low
₹4,449.1

Technical Indicators

Key Insights

Strengths

5
  • Company is almost debt free.
  • Company has delivered good profit growth of 35.9% CAGR over last 5 years
  • Company has a good return on equity (ROE) track record: 3 Years ROE 25.4%
  • Company has been maintaining a healthy dividend payout of 36.5%
  • Company's median sales growth is 19.6% of last 10 years

Weaknesses

2
  • Stock is trading at 9.92 times its book value
  • Working capital days have increased from 47.9 days to 73.1 days

Growth Rate

Revenue Growth
22.12% ↗
Net Income Growth
29.55% ↗
Cash Flow Change
-11.15% ↘
ROE
0.45% ↘
ROCE
-0.45% ↘
EBITDA Margin (Avg.)
-0.33% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 2d ago
HOLD
Risk medium

Persistent Systems demonstrates exceptional growth with 35.9% profit CAGR over 5 years and 25% ROE consistency, but the stock's 21% decline over the past year and elevated valuation at 40.8x PE with 9.72x price-to-book suggest the market is repricing risk. With 58.8% analyst buy ratings but 29.4% sell ratings, conviction is split.

Bull Case 8
  • Compounded profit growth of 42% TTM significantly outpaces revenue growth of 24% TTM, indicating strong operating leverage and margin expansion
  • Consistent ROE of 25-27% over 3-5 years demonstrates superior capital efficiency rare among Indian IT midcaps
  • Company is almost debt free, providing financial flexibility for acquisitions and investments without balance sheet stress
  • Revenue CAGR of 29% over 5 years and 20% over 10 years shows sustained demand for its digital engineering services
  • Healthy dividend payout ratio of 36.5% rewards shareholders while retaining enough capital for growth
  • Compounded profit growth of 36% over 5 years far exceeds the IT sector median, justifying premium valuation partially
  • Median sales growth of 19.6% over 10 years provides a long track record of consistent execution
  • 58.82% of 34 analyst ratings are Buy recommendations, reflecting majority institutional confidence
Bear Case 8
  • Stock has declined 21% over the past 1 year, underperforming broader markets and indicating potential de-rating cycle
  • PE ratio of 40.8x is expensive even for a high-growth IT company, leaving limited margin of safety
  • Price-to-book of 9.72x is significantly elevated, pricing in years of future growth already
  • Working capital days have deteriorated from 47.9 to 73.1 days, a 52.6% increase signaling potential collection challenges
  • 29.41% of analysts rate the stock as Sell — 10 out of 34 ratings — indicating meaningful institutional skepticism
  • Dividend yield of just 0.46% offers negligible income support during periods of capital depreciation
  • Market cap of Rs 77,329 crore requires sustained 25%+ growth for years to justify current multiples, raising execution risk
  • 10-year stock CAGR of 30% may attract mean-reversion as growth normalizes from the 42% TTM profit surge

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 1d ago
Headwinds 4
  • Analyst earnings cuts 4-5% Jun 10

    Motilal Oswal reduced earnings estimates by 4-5% citing soft March quarter exit and continued AI reinvestments, expecting gradual margin expansion to only 16.7-16.8% over FY27-28E.

  • AI disruption to revenue model Jun 10

    Analysts caution that AI-driven solutions will reduce development life cycles, potentially compressing traditional revenue streams as clients incorporate AI technologies into workflows.

  • Stock down 13% YTD, volatile Jun 01

    Shares fell 6.77% on Jun 3 amid broader IT weakness after OpenAI enterprise concerns; stock is down 13% YTD and 15% over six months from 52-week high of ₹6,599 hit Dec 23, 2025.

  • Margin pressured by AI investments Jun 10

    CFO Vinit Teredesai stated growth is the priority over margins, with EBIT margin expected to stay in a tight range as the company continues investing in AI capabilities.

Positives 8
  • Estonia expansion at 0.48x P/S Jun 01

    Acquired part of Concise Systems for EUR 5.6M, adding 90+ engineers in Tallinn and Tartu with EUR 11.6M annual revenue — highly accretive at 0.48x price-to-sales multiple.

  • $2B annualized revenue target FY27 Jun 10

    Company targets $500M quarterly revenue by March 2027 (annualized $2B), requiring average 3.5% quarterly growth from $436M reported in Q4FY26.

  • Strong Q4FY26: revenue +25% YoY Jun 01

    Q4FY26 revenue grew 25% YoY to ₹4,056 crore, EBITDA up 31% to ₹768 crore, net profit surged 34% to ₹529 crore with EPS of ₹33.83.

  • Kong partnership for AI governance May 25

    Strategic partnership with Kong as global systems integration partner targeting 300+ enterprise accounts, combining Kong's AI Gateway with Persistent's GenAI Hub for production-scale AI deployment.

  • Databricks AI talent pipeline built Jun 04

    Collaborated with Databricks and MSOE on AI engineering initiative leveraging 1,300+ Databricks experts and 950+ certifications, targeting 20-25% incremental revenue from GenAI-led deals.

  • Stock rallied 8% in three weeks Jun 10

    Shares gained 8% over three weeks on AI growth optimism and weaker rupee supporting realisations, reducing post-Q4 results decline to 6%.

  • Mexico ops decade, nearshore strength Jun 17

    Celebrated 10 years of Mexico operations strengthening nearshore capabilities for AI and cloud modernization across the Americas.

  • CII disability inclusion award Jun 19

    Won CII Award for Excellence in Disability Inclusion 2026 for Best Employer – Physical Accessibility, recognizing accessibility framework across workplaces and digital platforms.

Neutral 5
  • San Francisco Unicorns cricket deal Jun 15

    Partnered with San Francisco Unicorns as Official Re(AI)maging Partner for 2026 Major League Cricket season, featuring on-field branding and client hospitality experiences.

  • ESOP Trust buying 40,000 shares Jun 15

    Persistent ESOP Trust will purchase up to 40,000 equity shares by June 30, 2026 to meet vesting commitments under employee stock option schemes.

  • Board approves director reappointments Jun 08

    Board approved reappointing four Independent Directors for second terms and internal restructuring including a merger and share transfer, requiring approval at 36th AGM in July 2026.

  • Kong partnership for API security May 26

    Partnered with Kong to provide unified control layer for APIs, data and AI services to simplify integration and strengthen governance for enterprises moving AI to production.

  • Investor meeting with Aikya Jun 02

    Held one-on-one session with Aikya Investment Management on June 2, 2026, reiterating Q4FY26 earnings details without sharing any new material information.

TL;DR: Persistent Systems is executing well on AI-led growth with strong Q4FY26 financials (revenue +25% YoY, profit +34%) and a clear path to $2B annualized revenue by March 2027. The Estonia acquisition and Kong/Databricks partnerships reinforce its AI engineering positioning at attractive economics. Key risks are near-term margin compression from AI reinvestments, analyst earnings downgrades of 4-5%, and the structural threat of AI reducing traditional development cycles. The trend is improving on revenue momentum but margin expansion will lag, making execution on the $500M quarterly target the critical near-term catalyst.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
2,254
2,321
2,412
2,498
2,591
2,737
2,897
3,062
3,242
3,334
3,581
3,778
4,056
Expenses
1,838
1,947
2,007
2,056
2,136
2,282
2,416
2,524
2,658
2,722
2,898
3,045
3,288
Operating Profit
416
374
405
442
454
455
481
538
584
612
683
733
768
OPM %
18%
16%
17%
18%
18%
17%
17%
18%
18%
18%
19%
19%
19%
Other Income
9
22
37
38
31
31
47
43
18
55
52
-49
33
Interest
15
13
12
12
10
14
18
16
18
17
18
19
19
Depreciation
70
76
74
79
80
71
74
82
79
94
100
101
109
PBT
341
307
356
389
395
401
435
482
505
555
617
565
674
Tax %
26%
25%
26%
26%
20%
24%
25%
23%
22%
23%
24%
22%
21%
Net Profit
252
229
263
286
315
306
325
373
396
425
471
439
529
EPS in Rs
16.45
14.86
17.11
18.59
20.47
19.89
21.02
24.12
25.59
27.17
30.15
27.86
33.55
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
1,891
2,312
2,878
3,034
3,366
3,566
4,188
5,711
8,351
9,822
11,939
14,748
Expenses
1,501
1,921
2,413
2,565
2,810
3,073
3,505
4,753
6,831
8,146
9,881
11,953
Operating Profit
390
392
465
469
556
493
683
958
1,519
1,676
2,058
2,795
OPM %
21%
17%
16%
15%
17%
14%
16%
17%
18%
17%
17%
19%
Other Income
94
77
84
119
88
132
108
144
41
128
138
91
Interest
0
0
0
0
0
6
6
12
47
47
67
73
Depreciation
94
99
149
158
157
166
176
166
272
309
307
403
PBT
390
370
401
429
486
452
609
924
1,241
1,448
1,822
2,411
Tax %
25%
25%
25%
25%
28%
25%
26%
25%
26%
24%
23%
23%
Net Profit
291
277
301
323
352
340
451
690
921
1,093
1,400
1,865
EPS in Rs
18.16
17.33
18.84
20.19
21.98
22.26
29.48
45.15
60.24
70.98
90.54
118
Div. Payout %
41%
23%
24%
25%
25%
27%
34%
34%
41%
37%
39%
34%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
80
80
80
80
79
76
76
76
76
77
78
79
Reserves
1,326
1,578
1,819
2,047
2,266
2,309
2,719
3,292
3,889
4,881
6,241
7,759
Borrowings
4
3
3
2
2
71
98
578
655
451
311
477
Other Liabilities
365
459
433
514
509
635
771
1,473
1,999
1,997
2,092
3,061
Total Liabilities
1,775
2,120
2,335
2,644
2,856
3,092
3,666
5,419
6,619
7,405
8,722
11,377
Fixed Assets
408
437
536
512
401
432
457
1,534
2,341
2,221
2,541
2,883
CWIP
4
27
29
5
32
30
12
107
16
34
77
11
Investments
674
638
684
880
764
979
1,000
822
640
827
980
1,615
Other Assets
689
1,018
1,086
1,247
1,659
1,652
2,197
2,956
3,622
4,324
5,123
6,868
Total Assets
1,775
2,120
2,335
2,644
2,856
3,092
3,666
5,419
6,619
7,405
8,722
11,377
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
312
254
286
421
432
352
736
845
956
1,302
1,157
1,767
Investing
-230
-86
-222
-337
-233
-6
-540
-971
-383
-525
-517
-610
Financing
-66
-127
-58
-96
-160
-329
-144
182
-404
-582
-628
-748
Net Cash Flow
16
41
6
-12
39
16
52
56
169
196
12
409
Free Cash Flow
216
89
70
356
395
277
611
464
524
947
964
1,572
CFO/OP
105
91
84
116
103
98
131
113
85
98
81
86
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
69
67
60
58
53
61
50
61
69
62
56
53
Cash Conversion Cycle
69
67
60
58
53
61
50
61
69
62
56
53
Working Capital Days
29
40
49
53
43
37
25
4
20
24
47
73
ROCE %
29%
23%
23%
20%
20%
18%
21%
26%
30%
29%
30%
34%

Shareholding Pattern

As of Mar 2026
DIIs 30.48%
Promoters 30.29%
FIIs 22.12%
Public 12.70%
Others 4.41%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
31.29%
31.26%
31.26%
31.26%
31.26%
31.26%
31.26%
31.26%
31.26%
31.06%
31.06%
31.06%
31.02%
31.02%
30.66%
30.66%
30.66%
30.56%
30.56%
30.29%
30.29%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.12%
0.01%
0.02%
0.00%
21.34%
24.55%
24.96%
22.55%
23.33%
24.75%
24.36%
24.19%
21.23%
22.80%
22.12%
DIIs
28.25%
28.62%
27.35%
26.31%
26.15%
25.34%
25.00%
26.41%
27.61%
28.04%
28.67%
26.14%
25.88%
28.23%
27.37%
26.26%
26.85%
27.78%
30.60%
29.82%
30.48%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.01%
0.01%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
14.64%
14.98%
15.69%
15.73%
16.02%
16.46%
17.31%
16.51%
15.12%
14.76%
13.92%
13.62%
13.70%
14.20%
13.67%
13.74%
13.76%
13.49%
13.87%
12.88%
12.70%
Others
25.82%
25.14%
25.70%
26.69%
26.57%
26.93%
26.30%
25.80%
25.99%
26.14%
5.01%
4.63%
4.44%
3.99%
4.96%
4.57%
4.36%
3.99%
3.74%
4.22%
4.41%
No. of Shareholders
0
67,849
90,220
1,27,584
1,51,610
1,71,875
1,93,024
2,14,091
2,00,720
1,87,082
1,82,193
1,85,728
1,89,570
2,30,063
2,28,534
2,39,682
2,38,795
2,43,441
2,54,897
2,33,787
2,40,518

Documents

Frequently Asked Questions about Persistent Systems Ltd

What does Persistent Systems Ltd do?
Persistent Systems provides software engineering and strategy services to help companies implement and modernize their businesses. It has its own software and frameworks with pre-built integration and acceleration [1]. It also has partnership with providers such as Salesforce and AWS [2].
Where is Persistent Systems Ltd (PERSISTENT) listed?
Persistent Systems Ltd is listed on the Indian stock exchanges. It is listed on NSE: PERSISTENT and BSE: 533179. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Persistent Systems Ltd belong to?
Persistent Systems Ltd operates in the Information Technology sector within the IT - Software industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Persistent Systems Ltd?
Persistent Systems Ltd has a market capitalisation of approximately ₹77447.36 Cr. Based on this, it is classified as a Large Cap stock.
What is the PE ratio of Persistent Systems Ltd?
The Price-to-Earnings (PE) ratio of Persistent Systems Ltd is 40.78. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Persistent Systems Ltd?
Over the past 52 weeks, Persistent Systems Ltd has traded between a low of ₹4,449.1 and a high of ₹6,599. This range helps investors understand the stock's price volatility and recent trading levels.
Does Persistent Systems Ltd pay dividends?
Yes, Persistent Systems Ltd has a dividend yield of 0.45%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Persistent Systems Ltd?
Persistent Systems Ltd has a Return on Equity (ROE) of 22.06%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Persistent Systems Ltd on Tapetide?
On Tapetide, you can view Persistent Systems Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Persistent Systems provides software engineering and strategy services to help companies implement and modernize their businesses. It has its own software and frameworks with pre-built integration and acceleration [1]. It also has partnership with providers such as Salesforce and AWS [2].

Website persistent.com
CEO Dr. Anand Suresh Deshpande Ph.D.
Employees 22,205
Listed 2010-04-06
Face Value ₹ 5
Issued Size 15,77,50,000

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