Persistent Systems Limited (PERSISTENT) AI Stock Analysis

• Market Cap: ₹913.83B
• Dividend Yield: 0.59%
• Average Volume (3M): 20.08K
• Price to Earnings (P/E): 53.6
• Beta (1Y): 1.25
• 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: 156,400,000
• 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: ₹6,396.25
• Price Target Upside: 7.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: ₹6,352.00 ▲(6.57% Upside)

Persistent Systems scores well due to its strong financial performance, characterized by robust revenue growth and profitability. Technical analysis indicates positive short-term momentum, though caution is advised due to overbought signals. The high P/E ratio suggests the stock may be overvalued, which tempers the overall score.

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	96.38B	119.39B	90.95B	83.51B	57.11B	41.88B
Gross Profit	25.81B	22.36B	25.23B	34.28B	23.39B	16.45B
EBITDA	17.54B	19.27B	16.63B	15.60B	11.02B	7.91B
Net Income	11.94B	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	11.94B	9.20B	9.37B	5.22B	4.60B	6.08B
Operating Cash Flow	10.73B	11.57B	13.02B	9.56B	8.45B	7.36B
Investing Cash Flow	-3.79B	-4.34B	-5.62B	-4.21B	-9.77B	-5.42B
Financing Cash Flow	-6.26B	-6.28B	-5.47B	-4.04B	1.82B	-1.44B

Persistent Systems Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5960.25
• 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 5960.25 is above the 20-day moving average (MA) of 5507.11, above the 50-day MA of 5383.90, and above the 200-day MA of 5516.83, indicating a bullish trend. The MACD of 167.03 indicates Negative momentum. The RSI at 67.05 is Neutral, neither overbought nor oversold. The STOCH value of 74.49 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
PERSISTENT	―	₹913.83B	53.59	―	0.59%	23.27%	33.09%
MPHASIS	―	₹522.85B	29.38	―	1.97%	8.11%	10.73%
LTIM	―	₹1.66T	34.11	―	1.18%	8.72%	4.54%
TATAELXSI	―	₹345.38B	51.50	―	1.35%	-1.19%	-17.92%
COFORGE	―	₹580.41B	58.18	―	0.86%	41.97%	38.73%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TEJASNET	―	₹95.94B	―	―	0.46%	-17.23%	-185.73%

Persistent Systems Limited Corporate Events

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.

Persistent Systems Reaffirms Q1FY26 Insights in Investor Session

Persistent Systems Limited conducted an investor and analyst session on September 23, 2025, reiterating information previously shared during their earnings call for the quarter ended June 30, 2025. No new information was disclosed during this session, which involved interactions with multiple investors and financial partners.

Persistent Systems Announces Trading Window Closure Ahead of Financial Results

Persistent Systems Limited has announced the closure of its trading window in compliance with SEBI regulations, effective from September 24, 2025, to October 16, 2025. This closure is in anticipation of the Board of Directors meeting scheduled for October 13-14, 2025, where the company will review and approve its audited financial results for the quarter and half-year ending September 30, 2025. The company will also conduct an investor/analyst call post-meeting to discuss these results, indicating a proactive approach to stakeholder communication.

Persistent Systems Sees Minimal Impact from H-1B Visa Restrictions

Persistent Systems Limited has announced that the recent U.S. Executive Order regarding restrictions on H-1B visa applications is not expected to significantly impact its operations or financials. The company will continue to monitor the situation and provide updates as necessary, indicating a proactive approach to potential changes in immigration policies.

Persistent Systems Schedules Investor Session for September 2025

Persistent Systems Limited has scheduled an investor and analyst session on September 23, 2025, to engage with multiple investment firms. The session will reiterate information from a previous earnings call, ensuring no unpublished price-sensitive information is disclosed, reflecting the company’s commitment to transparency and regulatory compliance.

Persistent Systems Reiterates Q1FY26 Earnings Information in Investor Session

Persistent Systems Limited engaged in a virtual interaction with Aberdeen on September 18, 2025, to reiterate information previously shared during their earnings call for the quarter ended June 30, 2025. The session did not introduce any new information, maintaining the company’s transparency with its stakeholders and aligning with regulatory requirements.

Persistent Systems Achieves ‘Growth Honor of the Year’ at 2025 Everest Group Elevate Honors

Persistent Systems Limited has been awarded the ‘Growth Honor of the Year’ at the 2025 Everest Group Elevate Honors, recognizing its consistent revenue growth and industry-defining performance among global peers. This accolade underscores Persistent’s strong growth trajectory, marked by 21 consecutive quarters of revenue growth and a significant shareholder return, driven by its innovative service offerings and robust partner ecosystem.

Persistent Systems Releases Q1 FY26 Investor Call Transcript

Persistent Systems Limited announced the release of the transcript from their investor and analyst call for the first quarter of fiscal year 2026, which ended on June 30, 2025. This release is part of their compliance with regulatory requirements and provides stakeholders with insights into the company’s financial performance and strategic direction.