Persistent Systems Limited: Comprehensive Stock Analysis Report | Scrolls
- Editor
- Sep 18
- 2 min read
by KarNivesh | 18 September, 2025
Comprehensive Overview
Persistent Systems Limited has emerged as a strong growth story in India’s IT services sector, with 21 consecutive quarters of sequential revenue growth. Its positioning as an AI-driven digital transformation leader, combined with strategic bets in healthcare, BFSI, and cloud modernization, makes it a differentiated mid-cap player. Despite premium valuations, its debt-free balance sheet, strong partnerships with hyperscalers (Google Cloud, AWS, Microsoft), and domain expertise justify investor confidence.
Company Profile & Strategy
Founded in 1990 by Dr. Anand Deshpande, Persistent has grown from a Pune-based startup into a global digital engineering company with 23,800+ employees in 21 countries. Unlike large-scale IT majors, Persistent focuses on AI-led transformation, platform-driven solutions, and niche industry expertise, enabling it to command premium pricing. Recognition includes being named the fastest-growing IT services brand in India, with a 327% brand value rise since 2020.
Financial Performance
Revenue Growth: From ₹4,188 crores in FY21 to ₹11,939 crores in FY25, with Q1 FY26 revenue at ₹3,333.59 crores, reflecting 21.8% YoY growth.
Profitability: Net profit in Q1 FY26 was ₹424.94 crores, a 38.7% YoY increase, with margins improving from 11% in FY23 to 12.7% in FY26.
Ratios: ROE (22.15%) and ROCE (28.61%) are industry-leading. The balance sheet is debt-free (D/E = 0.00), with a current ratio of 2.36.
EPS Growth: From ₹60.24 (FY23) to ₹90.54 (FY25), with trailing EPS of ₹97.90.
Ownership Structure
As of June 2025:
Promoters: 30.56% (stable, strong founder presence)
FIIs: 24.19% (global confidence)
Mutual Funds: 22.33% (domestic institutional support)
Retail: 17.48%
Others: 5.44%
Risks
Premium valuation could correct if growth slows.
Client concentration (top 5 = 40% of revenue) poses risk.
Geographic dependence (US & India = 60% of revenue).
Competition from TCS, Infosys, Accenture.
Talent & scale constraints in high-demand AI/cloud segments.
Comments