Persistent Systems Limited (PERSISTENT) AI Stock Analysis

• Market Cap: ₹1.01T
• Dividend Yield: 0.55%
• Average Volume (3M): 20.08K
• Price to Earnings (P/E): 59.8
• Beta (1Y): 1.32
• Revenue Growth: 23.27%
• EPS Growth: 33.09%
• Country: IN
• Employees: 21,950
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 30.20
• Shares Outstanding: 157,750,000
• 10 Day Avg. Volume: 23,945
• 30 Day Avg. Volume: 20,081
• PEG Ratio: 2.23
• Price to Book (P/B): 12.80
• Price to Sales (P/S): 6.77
• P/FCF Ratio: 87.87
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹6,688.00
• Price Target Upside: 4.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹6,804.00 ▲(6.00% Upside)

Persistent Systems Limited demonstrates strong financial performance with consistent growth and profitability, which is the most significant factor in its overall score. Technical indicators show positive momentum but caution is advised due to overbought signals. The high valuation presents a risk, as it may limit future price appreciation.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a robust business model and effective market strategies, supporting long-term expansion and competitiveness.

Cash Flow Management

Efficient cash flow management ensures the company can fund operations, invest in growth opportunities, and maintain financial flexibility.

Balance Sheet Health

A low debt-to-equity ratio reflects prudent financial management, reducing risk and enhancing long-term financial stability.

Negative Factors

Cost Pressures

Decreasing gross profit margins suggest rising costs, which could impact profitability if not managed effectively over the long term.

Debt Levels

While currently low, increasing debt levels could strain future cash flows and limit financial flexibility if the trend continues.

Valuation Risk

High valuation may limit future price appreciation and could pose a risk if growth expectations are not met.

Persistent Systems Limited Business Overview & Revenue Model

Company Description

Persistent Systems Limited provides software products, services, and technology solutions in India, North America, and internationally. It provides payments, cloud and infrastructure, intelligent automation, data governance and security, Persistent digital bank and credit union, loan origination, data and analytics, operations automation, and regulatory compliance management solutions; foreign exchange and trade finance, and treasury and cash management services; product and platform strategy, engineering, modernization, and sustenance and support solutions; and enterprise IT security services. The company also offers CX transformation, and integrated wellness and care solutions for insurance; claims lifecycle management automation solutions; Persistent digital front door, revenue cycle optimization, healthcare interoperability, and population health management solutions; patient claims management, care management, and payor operations solutions; product and digital engineering solutions; digital lab and optimization, cloud migration and modernization, decentralized trails, quality management and compliance, and genomics solutions; and commercial and multiplatform analytics and integration, as well as robotic process automation and quality management system solutions. In addition, it provides IBM engineering lifecycle management solutions; Dassault 3D experience platforms, as well as planning and optimization, and manufacturing and operations software; and engineering managed and integration services. Further, the company offers network assurance and performance management, 5G AI operations and automation, mobile edge cloud accelerators, and network API monetization solutions; and operates technology centers. It serves customers in the banking, financial services, insurance, healthcare, life sciences, industrial, software and hi-tech, and telecom and media sectors. Persistent Systems Limited was incorporated in 1990 and is based in Pune, India.

How the Company Makes Money

Persistent Systems generates revenue through a combination of project-based contracts, long-term service agreements, and consulting services. The primary revenue streams include software development services, which involve custom application development and system integration, as well as maintenance and support services for existing software solutions. Additionally, the company earns income from its proprietary products and platforms, often developed in collaboration with clients. Significant partnerships with leading technology firms and a focus on emerging technologies such as artificial intelligence and cloud computing further enhance its revenue potential, as they enable Persistent to offer competitive, innovative solutions to its clients.

Persistent Systems Limited Financial Statement Overview

Summary

Persistent Systems demonstrates strong financial health across all verticals. The income statement highlights significant revenue growth and strong profitability metrics. The balance sheet shows low leverage and high returns on equity, while the cash flow statement indicates efficient cash management. Overall, the company is well-positioned in the industry, with a solid financial foundation and growth trajectory.

Income Statement

Persistent Systems has shown strong revenue growth with a rate of 21.55% in the latest year, which is impressive in the Information Technology Services industry. The company's gross profit margin is robust at 27.61%, and the net profit margin is healthy at 11.73%. EBIT and EBITDA margins are also strong at 23.70% and 16.14% respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.05, indicating low leverage and financial stability. The return on equity is impressive at 22.15%, showing good efficiency in generating profits from shareholders' investments. The equity ratio stands at a solid 72.34%, reflecting a strong equity base relative to total assets.

Cash Flow

The cash flow statement reflects a stable financial position with a free cash flow to net income ratio of 0.66, and an operating cash flow to net income ratio of 0.83, indicating good cash generation relative to profits. The free cash flow growth rate of -1.83% suggests a slight decline, which could be an area to monitor, but overall cash flow management remains strong.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	125.35B	119.39B	90.95B	83.51B	57.11B	41.88B
Gross Profit	32.69B	22.36B	25.23B	34.28B	23.39B	16.45B
EBITDA	22.34B	19.27B	16.63B	15.60B	11.02B	7.91B
Net Income	15.19B	14.00B	10.93B	9.21B	6.90B	4.51B
Balance Sheet
Total Assets	94.19B	87.37B	73.74B	66.73B	54.19B	36.66B
Cash, Cash Equivalents and Short-Term Investments	16.03B	11.15B	10.48B	9.56B	12.66B	15.07B
Total Debt	3.34B	3.11B	4.51B	6.58B	5.78B	984.40M
Total Liabilities	25.74B	24.18B	24.16B	27.08B	20.51B	8.70B
Stockholders Equity	68.45B	63.19B	49.58B	39.65B	33.68B	27.96B
Cash Flow
Free Cash Flow	13.09B	9.20B	9.37B	5.22B	4.60B	6.08B
Operating Cash Flow	14.34B	11.57B	13.02B	9.56B	8.45B	7.36B
Investing Cash Flow	-5.12B	-4.34B	-5.62B	-4.21B	-9.77B	-5.42B
Financing Cash Flow	-5.97B	-6.28B	-5.47B	-4.04B	1.82B	-1.44B

Persistent Systems Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6418.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 6418.85 is above the 20-day moving average (MA) of 6332.70, above the 50-day MA of 6245.04, and above the 200-day MA of 5644.25, indicating a bullish trend. The MACD of 39.98 indicates Negative momentum. The RSI at 55.56 is Neutral, neither overbought nor oversold. The STOCH value of 75.66 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTIM	78 Outperform	₹1.79T	36.79	―	1.08%	8.72%	4.54%
TATAELXSI	74 Outperform	₹354.31B	52.83	―	1.38%	-1.19%	-17.92%
COFORGE	73 Outperform	₹563.27B	48.06	―	0.88%	41.97%	38.73%
PERSISTENT	73 Outperform	₹1.01T	59.76	―	0.55%	23.27%	33.09%
MPHASIS	73 Outperform	₹541.05B	30.22	―	1.94%	8.73%	11.33%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEJASNET	54 Neutral	₹73.94B	-9.65	―	0.55%	-17.23%	-185.73%

Persistent Systems Limited Corporate Events

Persistent Systems Closes Trading Window Ahead of December Quarter Results

Persistent Systems Limited has announced the closure of its trading window from December 25, 2025, to January 22, 2026, in line with SEBI’s Prohibition of Insider Trading Regulations and its internal code of conduct, ahead of the consideration and approval of its financial results for the quarter and nine months ending December 31, 2025. The company has notified its promoters, promoter group, directors, key managerial personnel, designated persons, their immediate relatives, and connected persons of the restriction, with trading to resume from January 23, 2026, underscoring its compliance focus and governance practices around handling unpublished price-sensitive information before earnings announcements.

Persistent Systems Restructures Global Subsidiaries for Greater Operational Efficiency

Persistent Systems Limited has initiated an internal group restructuring by executing a Share Purchase Agreement to transfer full ownership of three overseas subsidiaries currently held by Persistent Systems Germany GmbH. The 100% shareholding in Persistent Systems Costa Rica Limitada will move to Persistent Systems Inc. in the US, while Persistent Systems Switzerland AG and Persistent Systems S.R.L. in Romania will be transferred to Ireland-based Aepona Group Limited, all on an arm’s-length basis and for cash consideration. The company states that the changes, to be completed by March 31, 2026, are aimed at entity rationalization and improving operational efficiency within the group, aligning its international corporate structure more closely with business and geographic priorities and potentially streamlining management and reporting lines across its ITES operations.

Persistent Systems Makes Irish Arm a Direct Wholly Owned Subsidiary

Persistent Systems Limited has completed the internal transfer of 100% shareholding of Aepona Group Limited, Ireland, from its wholly owned US subsidiary, Persistent Systems Inc., to the Indian parent entity after all customary closing conditions were met on December 23, 2025. With this step, Aepona Group Limited has become a direct wholly owned subsidiary of Persistent Systems Limited in India, simplifying the group’s ownership structure and potentially enhancing strategic, legal, and financial alignment of its international operations for shareholders and regulators.

Persistent Systems Engages Investors with Strategic Updates

Persistent Systems Limited recently conducted one-on-one investor sessions with Millennium Capital and Bajaj AMC, reiterating information from their previous earnings call for the quarter ending September 30, 2025. These interactions did not introduce new information but reinforced the company’s communicated performance and strategies, potentially strengthening investor confidence and maintaining transparency with stakeholders.

Persistent Systems Announces Investor Sessions for December 2025

Persistent Systems Limited has announced upcoming investor and analyst sessions scheduled for December 15 and 18, 2025. These interactions, which will be held with Millennium Capital, Bajaj AMC, and Axis Max Life Insurance, aim to reiterate information from their recent earnings call, ensuring no unpublished price-sensitive information is disclosed. The sessions reflect the company’s commitment to maintaining transparency with its stakeholders.

Persistent Systems Acquires Aepona Group to Enhance Operational Efficiency

Persistent Systems Limited has announced the acquisition of Aepona Group Limited, an ITES company based in Ireland, as part of an internal restructuring strategy. The acquisition, which involves a cash consideration of Euro 13,879,670, aims to transfer 100% shareholding from Persistent Systems Inc., USA to Persistent Systems Limited, India, enhancing operational efficiency and entity rationalization within the group.

Persistent Systems Expands with New Abu Dhabi Branch

Persistent Systems Limited has announced the establishment of a new branch office in Abu Dhabi, UAE. This strategic expansion, facilitated by the Department of Economic Development – Abu Dhabi Registration Authority, is expected to enhance the company’s operational capabilities and strengthen its market presence in the Middle East region.

Leadership Change at Persistent Systems: Senior VP Resigns

Persistent Systems Limited announced the resignation of Mr. Vikram Tulsyan from his role as Senior Vice President – Business Finance, effective November 21, 2025, due to personal reasons. This change in leadership is part of the company’s ongoing adjustments and is not attributed to any material reasons, suggesting stability in its operational and strategic direction.

Persistent Systems Reiterates Earnings Call Details in Investor Session

Persistent Systems Limited recently conducted a virtual one-on-one session with Matthews International on November 3, 2025. During this session, the company reiterated information from its previous earnings call for the quarter and half-year ended September 30, 2025, without disclosing any new information. This interaction underscores the company’s commitment to transparency and maintaining investor relations.

Persistent Systems Releases Q2 FY26 Investor Call Transcript

Persistent Systems Limited has released the transcript of its investor and analyst call for the second quarter of the fiscal year 2026, which ended on September 30, 2025. This announcement is part of their compliance with regulatory requirements and aims to provide stakeholders with detailed insights into the company’s financial performance and strategic direction. The transcript is available on the company’s website, reflecting Persistent Systems’ commitment to transparency and effective communication with its investors and analysts.

Persistent Systems Engages Investors in Non-Deal Roadshow

Persistent Systems Limited conducted a Non-Deal Roadshow on October 15, 2025, engaging with HSBC Mutual Fund and Edelweiss Mutual Fund. The company reiterated previously shared information from its recent earnings call, emphasizing its ongoing communication with investors without disclosing new data.

Persistent Systems Releases Investor Call Outcome and Recording

Persistent Systems Limited has announced the availability of the outcome and audio recording of its recent investor and analyst call for the quarter and half-year ended September 30, 2025. This announcement highlights the company’s commitment to transparency and communication with stakeholders, providing insights into its financial performance and strategic direction.

Persistent Systems to Release Q2 FY26 Financial Results and Host Investor Call

Persistent Systems Limited has announced it will release its financial results for the second quarter of FY26 on October 14, 2025. The company will hold an investor and analyst call on the same day to discuss its performance and business outlook, which could provide insights into its operational strategies and market positioning.