Persistent Systems Limited (PERSISTENT)

Information Technology · IT - Software · NSE · Updated 15 July 2026

₹5,075.8 ↓ 9.06% (1Y)

🎯 Key Takeaways

Persistent Systems Limited is in a strategic growth and transformation phase, marked by its proposed acquisition of Nagarro SE and associated global expansion. The company is transitioning from a domestic IT services model to a more diversified, international footprint, as evidenced by the Nagarro deal and related-party transactions to be voted on at the upcoming AGM.
Revenue grew 5.7% QoQ to ₹3,062 in Q3FY25.
⚠️ Integration and execution risk from the €1.05B Nagarro acquisition, including cultural alignment and realization of synergies.

Market Cap

₹74,176

P/E Ratio

54.5

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Persistent Systems Limited is in a strategic growth and transformation phase, marked by its proposed acquisition of Nagarro SE and associated global expansion. The company is transitioning from a domestic IT services model to a more diversified, international footprint, as evidenced by the Nagarro deal and related-party transactions to be voted on at the upcoming AGM. This move signals a deliberate shift toward higher-value, cross-border services, though it comes with near-term financial and execution risks.

📰 What's Happening

In the last quarter, Persistent Systems submitted its BRSR report for FY 2025-26, declared a final dividend of INR 18 per share, and announced its 36th AGM scheduled for August 3, 2026, where shareholders will vote on the Nagarro acquisition and related-party approvals. The AGM notice also includes resolutions on financial statements and director reappointments. Additionally, the company closed its trading window ahead of quarterly results, and ICRA placed its credit rating on negative watch due to increased leverage from the debt-funded acquisition.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	2,254	2,321	2,412	2,498	2,591	2,737	2,897	3,062
Operating Profit	425	396	442	480	485	486	527	580
OPM %	18.5%	16.1%	16.8%	17.7%	17.5%	16.6%	16.6%	17.6%
Net Profit	252	229	263	286	315	306	325	373
EPS	₹33.65	₹30.50	₹35.00	₹37.83	₹20.73	₹20.09	₹21.19	₹24.28

Quarterly revenue has shown consistent growth, rising from ₹2,254 crore in Q4FY23 to ₹3,062 crore in Q3FY25, with operating profit and margins also improving steadily. However, the sharp EPS spike in Q3FY24 (₹37.83) appears to be an outlier, likely due to non-recurring items or reclassifications, as EPS has since normalized to ₹24.28 in Q3FY25. Operating margins have stabilized around 17-18%, indicating disciplined cost management amid revenue expansion. The financial trend reflects healthy top-line growth, but the sustainability of margins and EPS performance will depend on how effectively the company integrates Nagarro and manages its expanded cost structure.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue or margins in the available filings, but the tone in the annual report and AGM notice suggests confidence in the Nagarro acquisition as a strategic enabler for global scale and capability expansion. Management is focused on executing the €1.05B acquisition, securing shareholder approvals, and managing integration while monitoring leverage and refinancing risks highlighted by ICRA. The emphasis on sustainability reporting and regulatory compliance also indicates a maturing corporate governance framework.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — IT - Software

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Tata Consultancy Services Limited	8.19 L Cr	17.2	67.6%	50.4%	0.00
Infosys Limited	4.54 L Cr	16.6	40.8%	29.2%	0.00
HCL Technologies Limited	3.07 L Cr	18.6	31.9%	23.6%	0.03
Wipro Limited	1.99 L Cr	15.0	19.1%	16.1%	0.20
Tech Mahindra Limited	1.34 L Cr	26.3	22.1%	10.0%	0.07
LTM Limited	1.18 L Cr	25.7	—	—	—
Oracle Financial Services Software Limited	78,487	34.0	—	—	—
Persistent Systems Limited	74,176	54.5	—	—	—
Coforge Limited	43,059	50.2	—	—	—
MphasiS Limited	39,760	23.9	—	—	—

🔗 Peer Stock Analyses

TCS INFY HCLTECH WIPRO TECHM

⚠️ Risk Factors

1. Integration and execution risk from the €1.05B Nagarro acquisition, including cultural alignment and realization of synergies. 2. Elevated leverage and refinancing risk due to debt-funded deal structure, as highlighted by ICRA's negative rating watch. 3. Potential margin pressure from scaling global operations and cross-border delivery models. 4. Market reaction sensitivity to deal progress and macroeconomic conditions affecting IT spending, particularly in key markets like Europe and North America.

📋 Recent Filings

🧠 Analyst's Read

Persistent Systems is undergoing a pivotal transformation with the Nagarro acquisition at its core, shifting from a domestic IT services player to a global technology services provider. Investors should monitor shareholder approval at the AGM, progress on integration, and how quickly the company can stabilize leverage and deliver on strategic promises without compromising financial stability.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-15.

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