Synopsis: IT company shares fell 5% after Q4 results. Its Revenue rose 25.1% YoY to ₹4,056 crore, and net profit grew 33.5% YoY to ₹529 crore, along with the brokerage’s mixed views on the results and operations.
The shares of an IT company specialising in Digital Engineering and Enterprise Modernisation, leveraging AI-led, platform-driven strategies to deliver end-to-end software product development, cloud services, and data analytics, are in focus following their Q4 results and Brokerage views.
With a market capitalization of Rs. 79,738.68 crores in the day’s trade, the shares of Persistent Systems Ltd declined upto 5.56 percent, making a low of Rs. 5038.20 per share compared to its previous closing price of Rs. 5335.30 per share.
What Happened
Persistent Systems Ltd, engaged in Digital Engineering and Enterprise Modernisation, leveraging AI-led, platform-driven strategies to deliver end-to-end software product development, cloud services, and data analytics, is in the spotlight following their Q4 results and Brokerage views as follows:
Its Revenue from operations rose by 25.1 percent YoY from Rs. 3,242 Crores in Q4FY25 to Rs. 4,056 Crores in Q4FY26, and it rose by 7.3 percent QoQ from Rs. 3,778 Crores in Q3FY26 to Rs. 4,056 Crores in Q4FY26.
Its Net Profit YoY rose by 33.5 percent from Rs. 396 Crores in Q4FY25 to Rs. 529 Crores in Q4FY26, and on a QoQ basis, it rose by 20.5 percent from Rs. 439 Crores in Q3FY26 to Rs. 529 Crores in Q4FY26.
The earnings per share (EPS) for the quarterly period stood at Rs. 33.83, compared to Rs. 25.64 in the previous year’s quarter. Along with it, the Board of Directors recommended a Final Dividend of Rs. 18 per share. This translates to Rs. 40 per share for FY26 compared to Rs. 35 per share for FY25.
The company demonstrates strong financial performance with a return on capital employed (ROCE) of 34.4% and a return on equity (ROE) of 27.3%, supported by a very low debt-to-equity ratio of 0.06. Over the past five years, it has delivered impressive profit growth with a CAGR of 35.3%, reflecting efficient capital utilisation and robust operational performance.
Its consistent track record is evident in a three-year average ROE of 25.4% and a median sales growth of 19.6% over the last decade. The company also maintains a healthy dividend payout ratio of 36.5%, highlighting its commitment to returning value to shareholders while sustaining growth.
Management Views on Results
Dr Anand Deshpande, Founder and MD of Persistent Systems, stated that the company has consistently built capabilities ahead of demand, investing over 36 years in engineering depth and data foundations. These investments are now enabling stronger client relationships and a significant role in clients’ AI-driven business transformations, with a continued focus on adapting capabilities as the market evolves.
Sandeep Kalra, CEO of Persistent Systems, highlighted 17.4% YoY revenue growth in FY26 with an EBIT margin of 15.6%, and announced a full-year dividend of ₹40 per share. Q4 FY26 marked the company’s 24th consecutive quarter of growth, reflecting consistent execution and alignment with client demand in an AI-driven market.
He emphasised that the company’s AI-first strategy is enhancing its operating model and delivery quality. Persistent’s growth has been widely recognised, with Brand Finance naming it the fastest-growing IT services brand globally in 2026, and he expressed gratitude to employees, clients, partners, and shareholders for their support.
Brokerage views on results
Citi on Persistent Systems
Citi has maintained a Sell rating on Persistent Systems with a target price of Rs 4,230, noting that Q4FY26 results were largely in line with expectations. The stock currently trades at a significant premium to peers, making valuation a concern.
Management highlighted macro uncertainty but remains confident in driving market share gains. Citi continues to be cautious on the sector, citing high competitive intensity and potential impacts from AI on business dynamics.
JPMorgan on Persistent Systems
JPMorgan has maintained an Overweight rating on Persistent Systems with a target price of Rs. 5,900, noting that Q4 was mixed, with a revenue beat but a margin miss. Revenue grew 3.4% QoQ, led by the healthcare segment.
Strong TCV and ACV metrics support the FY27 growth outlook, with EBIT margins around 17% and guidance of 16–17% for FY27. The company is seen as the fastest-growing among peers over the next three years.
HSBC on Persistent Systems
HSBC has given Persistent Systems a Hold rating with a target price of Rs 5,755, noting that the company continues to report sector-leading growth, although the FY27 outlook was slightly softer than expected.
Positively, Persistent has been able to back-fill any weakness in top clients without affecting margins. However, with valuation at a steep premium to the sector average (around 100%), they recommend a cautious stance.
Nomura on Persistent Systems
Nomura has given Persistent Systems a Neutral rating with a target price of Rs 5,200, noting a modest miss in 4QFY26. Management reiterated its goal of reaching a USD 2bn revenue run-rate by the end of FY27. Margins were impacted by corporate development expenses, and Nomura has lowered FY27–28 EPS by 2–4%. Given the rich valuation, the Neutral rating is retained.
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