PERSISTENT
Mid CapPersistent Systems Limited
IT
Persistent Systems is an AI-led, platform-driven Digital Engineering & Enterprise Modernization partner. It serves Software, Hi-Tech & Emerging Industries, Banking, Financial Services & Insurance, and Healthcare & Life Sciences. The company reported $8.1B Market Capitalization and 27,502 employees as of March 31, 2026.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
medium confidence · 3/12 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Excellent · 90/100Rev +25% YoY · PAT +34% YoY · margin expansion · +7% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,056 Cr | +25.1% | +7.4% |
| EBITDA | ₹768 Cr | +31.5% | +4.8% |
| Operating margin | 19.0% | +100 bps | +0 bps |
| PAT | ₹529 Cr | +33.6% | +20.5% |
| PAT margin | 13.0% | +83 bps | +142 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Persistent Systems reported strong Q4 FY26 with 16.2% YoY revenue growth ($436.0M) and 3.2% QoQ. FY26 revenue grew 17.4% YoY to $1,654.4M. EBIT margin for Q4 FY26 was 16.3% and 15.6% for FY26, including a one-time impact from New Labour Codes.
The company demonstrates consistent sequential and annual revenue growth, driven by its AI-led, platform-driven strategy and deepening client relationships. Profitability remains robust despite one-time impacts. Strong bookings and client additions suggest continued demand for its digital engineering and AI services.
Revenue by Segment (Q4 FY26)
Latest issuer-disclosed distribution across 3 reported categories.
AI-led, Platform-driven Strategy
Company is pivoting to an AI-led, platform-driven services strategy, driving enterprise-wide transformation through scaled AI adoption.
Digital Engineering Heritage
Leveraging its digital engineering heritage to unlock growth, enable business agility, accelerate time to market, and maximize value creation.
Deepening Client Relationships
Investments in engineering depth and data foundations are leading to deeper client relationships and a more meaningful role in client business reshaping.
New Growth Vectors
Focusing on new growth vectors at the intersection of industries, technology, and geographies, with enhanced focus on outcome-based models.
Melbourne Innovation Center
Opened Melbourne Innovation Center to support enterprise modernization and AI adoption, building localized engineering capabilities for the ANZ region.
AI Innovation Lab with IIT Kharagpur
Partnered with IIT, Kharagpur to establish the Persistent Innovation Lab for AI to advance cutting-edge AI research and real-world impact.
Accelerating AI Adoption
Management states that AI adoption is accelerating, strengthening the operating model and improving quality and scale of delivery across the business.
Strategic Partnerships
Co-innovating with AI ecosystem partners like Databricks and NVIDIA to develop domain-specific solutions and drive long-term AI impact.
Fluctuations in Earnings
Future growth prospects involve risks and uncertainties that could cause actual results to differ materially from forward-looking statements.
Intense Competition in IT Services
Risks include intense competition in IT services, including factors that may affect the company's cost advantage.
Client Concentration
The company's revenues are highly dependent on customers located in the United States, and client concentration is a risk.
Ability to Attract and Retain Talent
Risks include the company's ability to attract and retain highly skilled professionals and wage increases in India.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Both YoY and QoQ comparisons are crucial. YoY reflects overall business expansion and market share gains, while QoQ highlights sequential momentum, execution consistency, and immediate demand trends in a dynamic IT services market.
Q4 FY26 Revenue Growth (YoY)
Revenue ($M) for Q4 FY26 was $436.0M, a 16.2% YoY increase.
Q4 FY26 Revenue Growth (QoQ)
Revenue ($M) for Q4 FY26 was $436.0M, a 3.2% QoQ increase (3.4% in constant currency).
FY26 Revenue Growth (YoY)
Revenue ($M) for FY26 was $1,654.4M, a 17.4% YoY increase.
Q4 FY26 EBIT Margin
EBIT margin for Q4 FY26 was 16.3%.
Building Capabilities Ahead of Demand
Dr. Anand Deshpande states, 'Our approach has consistently been to build capabilities ahead of demand... These investments are leading to deeper client relationships.'
Consistency in Execution and Client Alignment
Sandeep Kalra notes Q4 FY26 marked the 24th sequential quarter of growth, reflecting 'consistency of our execution and alignment to client demand in a market being shaped by AI.'
AI-First Strategy Impact
Sandeep Kalra states, 'As AI adoption accelerates, our AI-first strategy is strengthening our operating model and improving the quality and scale of delivery across the business.'
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth (QoQ CC) | 3.4% in Q4 FY26 | Sustained sequential growth, indicating continued demand and execution momentum in AI-led services. |
| EBIT Margin | 16.3% in Q4 FY26 (15.6% for FY26, incl. one-time impact) | Stability or improvement in margins, especially after accounting for one-time impacts, reflecting operational efficiency and pricing power. |
| Total Contract Value (TCV) Bookings | $600.8M in Q4 FY26 | Continued strong bookings, particularly new bookings, as an indicator of future revenue pipeline and market traction for AI offerings. |
| Client Concentration (Top 10 clients as % of total revenue) | 42.1% in Q4 FY26 | Diversification of revenue across a broader client base, reducing reliance on a few large clients, while growing the number of large clients. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Show extracted source claims
Company will achieve 100% compliance for code of conduct training.
"100% compliance for code of conduct training"
Company will source 100% of electricity from renewable energy at all owned facilities.
"Source 100% of electricity from renewable energy at all owned facilities by the end of FY26"
Company aims for 35% gender diversity.
"Aim for 35% gender diversity by FY30"
Company will maintain carbon neutrality for scope 1 and 2 emissions and achieve SBTi-approved net-zero emission reduction targets.
"achieve SBTi-approved net-zero emission reduction targets by 2050"
Company will continue to build and adapt capabilities as the market evolves.
"We will continue to build and adapt our capabilities as the market evolves"
Company will maintain best-in-class information governance to manage data privacy and security risks.
"Maintain best-in-class information governance to manage data privacy and security risks"
Company will drive enterprise-wide transformation through scaled AI adoption.
"Driving enterprise-wide transformation through scaled AI adoption"
Company will pivot to an AI-led, platform-driven services strategy.
"Pivot to AI-led, platform-driven services strategy"
Trend score and candlestick chart
44NeutralSMA20 -11.4% / mo
Technical chart
PERSISTENTweekly · 6M-20.8%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 42.
- RSI(14) at 42 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 24% off 52W high · 13% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Quality contributes 17/20 to the score.
- Growth contributes 18/25 to the score.
Main drags
- Fair-value margin of safety is negative at -18.0%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
High Trust: Management has 100% delivered/partly-delivered outcomes on 3 checked claims. It ranks around the 100th percentile of the scored universe and 100th percentile within IT. No major sub-score weakness stands out.
High Trust: 3/12 extracted management claims have outcome checks; 100% were fully delivered and 0 were partially delivered.
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
overall median 67 · IT: 100th pctile, median 68 · Mid: 100th pctile, median 76
3/12 claims checked. Use as directional, not final.
3/12 claims checked · No contradicted claim yet
How to read this Trust Score
High Trust · medium confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.5%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.06.
Trust risks
- ▸No major Trust Lite risk flags.
Intrinsic value
Fundamentals
Valuation
- P/E
- 41.00
- P/B
- 10.10
- EV/EBITDA
- 24.89
- Market Cap
- 79136.00Cr
Profitability
- ROE
- 27.30%
- ROCE
- 34.40%
- ROA
- 16.39%
- Dividend Y
- 0.70%
Growth (CAGR)
- Revenue 5Y
- 29.00%
- EPS 5Y
- 36.00%
- Revenue 3Y
- 21.00%
- EPS 3Y
- 28.00%
Balance Sheet
- Debt/Equity
- 0.06
- Interest Coverage
- 38.29×
- Altman Z
- 9.31
- Book Value
- 497.00
Cash Flow
- FCF Yield
- 1.46%
- FCF Positive Y
- 11/5
- OCF
- 1767.00 Cr
- EPS TTM
- 118.23
Shareholding
- Promoter Hold
- 30.29%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 26%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.