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Persistent Systems Limited (PERSISTENT) AI Stock Analysis
Persistent Systems Limited
(NSE:PERSISTENT)
The score is driven primarily by strong financial fundamentals (profitability, high ROE, and very low leverage) and supportive technical trend signals (price above major moving averages with positive momentum). Offsetting these strengths are a relatively expensive valuation (high P/E and low yield) and earnings-call risks around margin pressure and Nagarro-related costs/approvals despite generally positive operating momentum.
Persistent Systems Limited (PERSISTENT) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 956.49B
- Dividend Yield
- 0.30%
- Average Volume (3M)
- 48.43K
- Price to Earnings (P/E)
- 52.6
- Beta (1Y)
- 1.17
- Revenue Growth
- 27.10%
- EPS Growth
- 7.08%
- Country
- India
- Employees
- 21,950
- Sector
- General
- Sector Strength
- 55
- Industry
- Information Technology Services
Persistent Systems Limited Business Overview & Revenue Model
Company Description
Persistent Systems Limited, an Indian company founded in 1990 and headquartered in Pune, delivers a comprehensive suite of software products, services, and advanced technology solutions to an international clientele, including extensive operations in...
How the Company Makes Money
Persistent Systems makes money primarily by providing outsourced software engineering and IT services to enterprise and technology clients, earning revenue through a mix of time-and-materials billing, fixed-price project delivery, and recurring manag...
Persistent Systems Limited Earnings Call Summary
The call was predominantly positive, supported by 20% year-on-year revenue growth, the 26th consecutive quarter of sequential growth, strong customer expansion, large AI-related wins, progress toward acquiring 94.04% of Nagarro, improved cash conversion, and broad recognition for AI, ESG, and workplace performance. Offsetting factors included a 130-basis-point year-on-year EBIT margin decline, a 25.4% reported PAT decline caused by Nagarro transaction expenses, lower utilization, an 8.5% decline in Europe revenue, softer quarterly bookings affected by deal slippage and slower decision-making, and pending regulatory approvals. Highlights significantly outweighed the lowlights.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
Management said, “We do not give forward-looking guidance,” but described a “16%-17% range” as its “aspiration” and “aspirational goal” for margins, said “all the segments will kind of grow very well,” and said “Healthcare should start seeing growth.” Persistent expects Nagarro deal closure by “Q4 CY 2026 or Q1 CY 2027,” with approvals expected “over the next four to six weeks, max, let's say eight weeks”; one-time transaction expenses are expected to be “approximately $50 million, spread over three to four quarters,” including “$25 million-$30 million” over the next two quarters and “$25 million-$30 million” over the next three to four quarters, while acquisition debt is expected to be “between 5%-6% on a net basis.”
Persistent Systems Limited Financial Statement Overview
Summary
Overall financial quality is strong: healthy and stable mid-teen EBIT margins, solid net margins, strong ROE (~20%–25%), and very low leverage (debt-to-equity ~0.06–0.07 in FY2026/TTM). Key risks are the sharp slowdown in FY2026 revenue growth and some pressure/volatility in gross margin and cash conversion despite positive and growing TTM free cash flow.
Income Statement
84Very PositiveBalance Sheet
88Very PositiveCash Flow
77Positive| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 168.01B | 147.48B | 119.39B | 98.22B | 83.51B | 57.11B |
| Gross Profit | 46.62B | 46.00B | 32.78B | 26.05B | 23.85B | 15.41B |
| EBITDA | 29.53B | 28.87B | 21.96B | 18.04B | 15.60B | 11.02B |
| Net Income | 18.03B | 18.65B | 14.00B | 10.93B | 9.21B | 6.90B |
Balance Sheet | ||||||
| Total Assets | 130.31B | 113.77B | 87.37B | 73.74B | 66.73B | 54.19B |
| Cash, Cash Equivalents and Short-Term Investments | 23.56B | 21.40B | 11.15B | 10.48B | 9.56B | 12.66B |
| Total Debt | 5.75B | 4.77B | 3.11B | 4.51B | 6.58B | 5.78B |
| Total Liabilities | 44.41B | 35.39B | 24.18B | 24.16B | 27.08B | 20.51B |
| Stockholders Equity | 85.89B | 78.38B | 63.19B | 49.58B | 39.65B | 33.68B |
Cash Flow | ||||||
| Free Cash Flow | 13.74B | 15.59B | 9.20B | 9.37B | 5.22B | 4.60B |
| Operating Cash Flow | 17.26B | 17.67B | 11.57B | 13.02B | 9.56B | 8.45B |
| Investing Cash Flow | -2.24B | -6.10B | -4.34B | -5.62B | -4.21B | -9.77B |
| Financing Cash Flow | -8.58B | -7.48B | -6.28B | -5.47B | -4.04B | 1.82B |
Persistent Systems Limited Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PERSISTENT, the sentiment is Positive. The current price of 6045.00 is above the 20-day moving average (MA) of 5735.74, above the 50-day MA of 5604.57, and above the 200-day MA of 5311.07, indicating a bullish trend. The MACD of 107.28 indicates Negative momentum. The RSI at 64.86 is Neutral, neither overbought nor oversold. The STOCH value of 85.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:PERSISTENT.
Persistent Systems Limited Peers Comparison
Overall Rating
IN:COFORGE82Outperform
IN:LTTS80Outperform
IN:HEXT79Outperform- IN:PERSISTENT76Outperform
IN:LTIM73Outperform
IN:MPHASIS69.7Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:COFORGE | 82Outperform | INR 908.23B | 39.86 | ― | 0.58% | 41.21% | 84.56% |
| IN:LTTS | 80Outperform | INR 454.01B | 29.48 | ― | 1.40% | 2.45% | 20.32% |
| IN:HEXT | 79Outperform | INR 306.36B | 21.79 | ― | 3.59% | 13.45% | 0.28% |
| IN:PERSISTENT | 76Outperform | INR 1.00T | 52.58 | ― | 0.30% | 27.10% | 7.08% |
| IN:LTIM | 73Outperform | INR 1.25T | 26.78 | ― | 2.54% | 14.67% | 7.26% |
| IN:MPHASIS | 70Neutral | INR 481.48B | 25.19 | ― | 2.46% | 13.69% | 9.34% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:PERSISTENT | Persistent Systems Limited | 6045.00 | 159.64 | 2.71% | |
| IN:COFORGE | Coforge Limited | 2050.00 | 262.45 | 14.68% | |
| IN:LTIM | LTIMindtree Limited | 4226.30 | -1378.49 | -24.59% | |
| IN:LTTS | L&T Technology Services Ltd. | 4279.25 | 226.89 | 5.60% | |
| IN:MPHASIS | Mphasis Limited | 2521.50 | -190.49 | -7.02% | |
| IN:HEXT | Hexaware Technologies Limited | 501.40 | -167.80 | -25.08% |
Persistent Systems Limited Corporate Events
Persistent Systems Clears INR 8,000 Crore Debenture Issue to Fund Nagarro Acquisition
Persistent Systems Limited has approved a major debt financing plan to support its acquisition of German IT services firm Nagarro SE. The board’s special committee cleared the terms for issuing up to 800,000 non-convertible debentures with an a...
Persistent Systems Receives [ICRA]AA+ Rating With Negative Watch for Rs 5,000 Crore NCDs
Persistent Systems Limited has received a credit rating of [ICRA]AA+ with a Rating Watch carrying Negative Implications for its proposed Rs 5,000 crore non-convertible debentures. The issuer rating for the company has also been reaffirmed at [ICRA]AA...
Persistent Systems Discloses Voting Outcomes of Extraordinary General Meeting
Persistent Systems Limited has reported the voting results of its Extraordinary General Meeting held on October 5, 2026, to the National Stock Exchange of India and BSE. The disclosure covers votes cast by shareholders via remote e-voting, electronic...
Persistent Systems Secures Shareholder Nod to Broaden Scope for Future Share Issuances
Persistent Systems has secured shareholder approval to amend sub-clause (iii) of Article 12 in its Articles of Association, enabling the company to offer further shares to any persons authorized by a special resolution. The revised provision allows s...
Persistent Systems Allots 400,000 Shares to ESOP Trust
Persistent Systems Limited has approved the allotment of 400,000 equity shares with a face value and allotment price of INR 5 each to its ESOP Management Trust, totaling INR 2 million. The move stems from earlier disclosures and was cleared by the St...
Persistent Systems Sets One-on-One Meetings with Global Institutional Investors
Persistent Systems has scheduled a series of in-person one-on-one investor meetings in Singapore time with major global institutional investors, including Wellington Management, Allianz Global Investors, Manulife Asset Management, T. Rowe Price, HSBC...
Persistent Systems Updates Exchanges on Key Institutional Investor Meetings
Persistent Systems Limited has reported the outcome of a series of investor meetings held on September 22, 2026, with major institutional investors including DSP, Bandhan, SBI Pension Funds, Mirae, Kotak, and Baroda BNP Paribas mutual funds. During t...
Persistent Systems Reports Investor Meetings, Reaffirms Disclosure Compliance
Persistent Systems Limited has disclosed the outcome of a series of investor sessions held on September 21, 2026 with key institutional investors, including Ashmore Investment, LIC Mutual Fund, Hudson Bay and Franklin Templeton Mutual Fund. These mee...
Persistent Systems Releases Updated Investor Presentation for Market Participants
Persistent Systems Limited has notified the National Stock Exchange of India and BSE that it has released an investor presentation for stakeholders. The communication, made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requir...
Persistent Systems Plans In-Person Meetings With Major Institutional Investors
Persistent Systems Limited has scheduled a series of in-person investor meetings on September 22, 2026, with major institutional investors including DSP Mutual Fund, Bandhan Mutual Fund, SBI Pension Funds, Mirae Mutual Fund, Kotak Mutual Fund, and Ba...
Persistent Systems Plans One-on-One Sessions With Key Institutional Investors
Persistent Systems Limited has scheduled a series of investor interactions on Monday, September 21, 2026, with Ashmore Investment, LIC Mutual Fund, Franklin Templeton Mutual Fund, and Hudson Bay. The meetings will be held in one-on-one formats, mostl...
Persistent Systems Announces Hybrid Extra Ordinary General Meeting for Shareholders
Persistent Systems Limited has notified stock exchanges that it has published newspaper advertisements to inform shareholders about an upcoming Extra Ordinary General Meeting. The EGM will be held on October 5, 2026, at the company’s registered...
Persistent Systems Earns ‘A’ ESG Rating from SEBI-Registered Agency
Persistent Systems Limited has received an ESG score of 83.3 and an ‘A’ rating from SES ESG Research Private Limited for FY 2025-26, based on the company’s disclosures and other public information. The voluntary assessment, issued b...
Persistent Systems Files Voting Results of 36th AGM with Stock Exchanges
Persistent Systems Limited has reported the voting results from its 36th Annual General Meeting held on August 3, 2026, in compliance with SEBI’s listing and disclosure regulations. The company detailed member participation through remote e-vot...
Persistent Systems clears audited Q1 FY27 results, reinforcing regulatory compliance
Persistent Systems Limited’s Board of Directors has approved the audited standalone and consolidated financial results for the quarter ended June 30, 2026, at a meeting held on August 1–2, 2026. The results, covering both the company and...
Persistent Systems Releases Q1 FY27 Fact Sheet and Schedules Investor Call
Persistent Systems Limited has released a fact sheet containing consolidated financial data for the quarter ended June 30, 2026, in line with SEBI’s listing and disclosure regulations, reinforcing its commitment to systematic reporting for shar...
Persistent Systems Posts 16% YoY Revenue Growth and Record $1.15B TCV in Q1 FY27
Persistent Systems Limited, a technology services and digital engineering company based in India with global operations, focuses on software-led IT solutions and is listed on both the BSE and NSE. Its market position is anchored in delivering digital...
Persistent Systems Publishes Audited Q1 FY 2026-27 Financial Results
Persistent Systems Limited announced that its Board of Directors has approved the audited financial statements for the quarter ended June 30, 2026, at a meeting held on August 2, 2026. The company has made both its standalone and consolidated audited...
Persistent Systems plans August non-deal roadshow with key institutional investors
Persistent Systems Limited has scheduled a two-day non-deal roadshow on August 4 and 5, 2026, in Mumbai to meet major institutional investors, including leading mutual funds, life insurers and asset managers. The company plans a series of one-on-one...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 16, 2026