Persistent Systems Limited (PERSISTENT)
Mid CapIT stocks · Mid cap · NSE
Persistent Systems is an Indian IT services company focused on AI-led, platform-driven digital engineering. It reported FY26 revenue of $1.654B, with a 5-year CAGR of 23.9%. The company has 27,500 team members across 21 countries, with 81%+ revenue from North America.
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 is neutral, 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 30 Jun 2026
Average · 52/100margin compression · Rev +29% YoY · PAT +14% YoY · +6% QoQ
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹4,303 Cr | +29.1% | +6.1% |
| EBITDA | ₹697 Cr | +13.9% | -9.2% |
| Operating margin | 16.0% | -200 bps | -300 bps |
| PAT | ₹483 Cr | +13.7% | -8.7% |
| PAT margin | 11.2% | -153 bps | -182 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Persistent Systems announced a strategic acquisition of Nagarro for €1.27B, creating a $2.9B AI-led digital engineering powerhouse with 46,000+ team members. Concurrently, it secured a $650M+ long-term deal with an existing global tech leader, adding $125M+ annually from Q2.
The Nagarro acquisition significantly expands Persistent's European footprint, adds complementary verticals (Industrial, Consumer, Public Sector), and enhances AI/ERP capabilities. The large new deal cements near-term growth, supporting the company's aspiration for sustained industry-leading growth and margin maintenance.
Combined Revenue by Geography
Latest issuer-disclosed distribution across 3 reported categories.
AI-led Digital Engineering
The combined entity aims to be a leading AI-led engineering powerhouse, leveraging partnerships with OpenAI, Anthropic, and hyperscalers.
Geographic Expansion
Nagarro adds significant European presence (22% of combined revenue), Middle East, Japan, and Israel, expanding the addressable market.
Vertical Diversification
Nagarro adds scale in Industrial, Consumer, and Public Sector verticals, complementing Persistent's TMT, BFSI, HLS focus.
Service Line Augmentation
Nagarro brings ERP capabilities, while Persistent adds CX, creating end-to-end transformation offerings.
Team Members
The combined entity will have 46,000+ team members globally across 40+ countries.
Nearshore Delivery Presence
The acquisition adds scaled nearshore centers in Europe.
AI Transformation Wave
Management believes the combined entity is well-positioned to ride the AI transformation wave, designing the company for this future.
Customer Demand for Scale
Larger combined scale (46,000+ team members, 40+ countries) provides a 'seat to the table' and 'right to win' in larger bids.
Complementary Capabilities
Integration of digital engineering, ERP, and AI expertise creates a unique offering, purpose-built for the future.
Integration Challenges
Integration will be a planned execution over a period of time and usually these things have to slow roll and take time to create value.
Nagarro's Past Performance
Nagarro's revenue has been flat for two years with margin pressure, attributed by management to 'management distraction' from a take-private transaction.
Valuation Premium
Acquisition price includes a 140% premium to the undisturbed closing price, justified by management as buying the 'right asset' for future value creation.
Debt Financing
Acquisition is fully debt-funded (€1.4B bridge financing), leading to leverage of 1.9x-2.5x combined EBITDA.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
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.
YoY comparison is relevant for assessing long-term growth trends and the impact of strategic acquisitions. QoQ comparison is crucial for tracking sequential momentum from the large deal ramp-up, integration progress, and margin management post-acquisition.
Persistent FY26 Revenue
Persistent today is roughly a $1.654 billion entity from a FY26 perspective. From a run rate perspective, we are more than $1.7 billion.
Persistent 5-year Revenue CAGR
We have grown at roughly about 23.9% for the last 5 years from a compounded annual growth rate perspective.
Persistent EBITDA Margin
Today, our margins stand at roughly 15.6%.
Persistent PAT Margin
The PAT margin stands at about 12.6%.
Strategic Rationale
The Nagarro acquisition is an 'expansion play' for Europe, not consolidation, bringing complementary people, capabilities, and markets.
Value Creation Confidence
Management is confident in maintaining growth momentum, creating unique customer capabilities, and delivering disproportionate value for shareholders.
Integration Approach
Nagarro management is committed to staying; integration will be planned and slow-rolled, with Nagarro's team playing a bigger role in their strength areas.
Margin Outlook
Ambition to maintain or better combined margins despite investments, leveraging cost synergies, and improving Nagarro's operational rigor.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Nagarro Revenue Growth | Flat for two years. | Return to industry-leading growth post-integration, as management expects. |
| Combined Entity Margins | Persistent EBITDA 15.6%, Nagarro EBITDA 13.9% (Q1 CY26 EBIT 12.1%). | Maintenance or improvement of combined entity margins, despite integration costs and investments. |
| Debt Reduction | Leverage 1.9x-2.5x combined EBITDA post-acquisition. | Reduction of Net Debt over combined EBITDA to 1x by FY2030, as planned. |
| Integration Execution | Planned execution over time, with Nagarro management staying. | Smooth cultural and operational integration, successful realization of revenue and cost synergies. |
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 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 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 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 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"
Trend score and candlestick chart
61BullishSMA20 +5.8% / mo · MACD −
Technical chart
PERSISTENTdaily · 1Y · AUTO+21.6%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 54. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 rising (~5.5% over last month) — short-term momentum positive.
- RSI(14) at 54 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 14% off 52W high · 33% 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.
Relative Strength & Trend Stage
- 14.0% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (-1.5% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
Valuation & score drivers
U-Score 58 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 58 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
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 19/20 to the score.
- Growth contributes 18/25 to the score.
Main drags
- Fair-value margin of safety is negative at -36.5%.
- 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
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
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 99th 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: 99th pctile, median 69 · 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 1.3%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.06.
Trust risks
- ▸No major Trust Lite risk flags.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 44.70
- P/B
- 11.35
- EV/EBITDA
- 27.08
- Market Cap
- 89018.00Cr
Profitability
- ROE
- 27.20%
- ROCE
- 34.40%
- ROA
- 16.44%
- Dividend Y
- 0.71%
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
- 33.89×
- Altman Z
- 9.43
- Book Value
- 497.00
Cash Flow
- FCF Yield
- 1.29%
- FCF Positive Y
- 11/5
- OCF
- 1767.00 Cr
- EPS TTM
- 122.18
Shareholding
- Promoter Hold
- 30.29%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 59%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
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.