Announcement
Announcement under Regulation 30 (LODR)-Meeting Updates 16 Oct - Approved terms to issue up to ₹8,000 crore NCDs and ₹1,000 crore commercial paper for Nagarro SE acquisition.
Source: Bse
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.
Data qualityFresh enough for analysisQuote updated 21 Oct, 03:31 pm ISTDetails
Quote21 Oct, 03:31 pm IST
Base fundamentals20 Oct 2026 · screener
Latest result02 Aug, 08:26 pm IST
Score22 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · IT P/E 21.4 (n=204)
Technical timing lens
Trend score and candlestick chart
77BullishMACD + · sector +19.3pp vs Nifty 500 (3M)
Stock trend: 61
Sector RS: 100
Sector 3M: +13.7% vs Nifty 500 -5.6%
IT FPI tailwindBuilding
Latest FPI flow is positive, but a second consecutive positive fortnight is still required. View sector evidence
Technical chart
PERSISTENTD candles · FIT view+21.6%Latest close ₹5858.50 on 2026-10-21
Bar
+2.8%
RSI
60
MACD hist
31.83
52W pos
69%
2026-10-21O ₹5700.00H ₹5868.00L ₹5690.00C ₹5858.50Vol 9.1L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
PERSISTENTNifty ITNifty 500
- PERSISTENT
- +12.3%
- Nifty 500
- -6.5%
- Nifty IT
- +12.0%
- Vs Nifty 500
- +18.7 pp
Chart stats
21 Oct 2026- From 52W high
- -11.2%
- 52W range position
- 69%
- ATR (14)
- 3.2%
- Volume vs 20D
- 1.43x
- Avg traded value
- ₹377 Cr
- 20D price channel
- ₹5,162 - ₹6,078
₹6,599
₹4,244.5 - ₹6,599
₹189.8
Latest completed session
20-session average
35.2% annualized volatility
Research snapshot
What the evidence says now
Mixed fundamentals, management trust is supportive, price trend supports entry, and recent execution is consistent.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · FAIR VALUE58
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Average52
Revenue +29.1% · PAT +13.7% YoY
Technical
Bullish77
Price trend and sector-relative-strength timing.
Valuation
Legacy model-59.7%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
High Trust89
medium confidence · 3/12 claims checked
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Average · 52/100margin compression · Rev +29% YoY · PAT +14% YoY · +6% QoQ
Filed 02 Aug 2026
Open results browser →| 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.
Fundamentals
Valuation
- P/E
- 48.10
- P/B
- 10.46
- EV/EBITDA
- 27.26
- Market Cap
- 89987.00Cr
Profitability
- ROE
- 27.20%
- ROCE
- 34.40%
- ROA
- 13.84%
- Dividend Y
- 0.69%
Growth (CAGR)
- Revenue 5Y
- 29.00%
- EPS 5Y
- 36.00%
- Revenue 3Y
- 21.00%
- EPS 3Y
- 28.00%
Balance Sheet
- Debt/Equity
- 0.07
- Interest Coverage
- 27.22×
- Altman Z
- 9.16
- Book Value
- 544.00
Cash Flow
- FCF Yield
- 1.28%
- FCF Positive Y
- 11/5
- OCF
- 1767.00 Cr
- EPS TTM
- 114.31
Shareholding
- Promoter Hold
- 30.29%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 61%
Financial History
Updated 21/10/2026
Revenue
₹ CrLatest: 14.7k+23.5% vs prev
Net Profit
₹ CrLatest: 1,865+33.2% vs prev
Return on Equity
%Latest: 21.7+21.6% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
NeutralTrend is undirectional — long-term uptrend intact. RSI 60.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 60 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 11% off 52W high · 38% 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.
Nifty 500 leadership
Relative Strength & Trend Stage
78
RS percentile
Stage 2 UptrendRecent S2
1M return
+7.5%
3M return
+12.3%
6M return
+15.7%
1Y return
-0.6%
RS 1D
+6
RS 20D
+11
Sector rank
#1
Industry rank
#2
Stage evidence
- Price is 12.2% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +2.2%.
- Both 3-month and 6-month returns are positive.
50-DMA
price above
200-DMA
price above
S2 entered
05 Oct 2026
S2 age
12 trading sessions
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
262 observations
21 Oct 2026Value 125.25+3.92%
RS vs Nifty 500125
Valuation & peers
U-Score 58 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Valuation & peers
U-Score 58 · legacy U-Score band FAIR VALUE · valuation evidence and comparable companies
Premium Compounder
Fundamental score breakdown
U band · FAIR VALUEValuation0/30
Growth18/25
Quality19/20
Balance Sheet9/15
Cash Flow7/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
58
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
58/100 · legacy band FAIR VALUE
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 -59.7%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
Sector valuation model
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.
Primary lens
PE and EV/EBITDA relative to revenue growth, margins, and cash conversion.
Secondary checks
Deal pipeline, attrition, dollar revenue growth, FCF yield.
Main risk check
Low PE can reflect weak growth or margin pressure.
PE
48.1
PB
10.5
EV/EBITDA
27.3
ROE
27.2%
ROCE
34.4%
FCF Yield
1.3%
Debt/Equity
0.1
MoS
-59.7%
Score movement
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.
Stored run: 22 Oct 2026
v4.3-runtime-valuation
Final score
58
Previous: 58
Legacy U-Score band
FAIR VALUE
Previous: FAIR VALUE
Margin of safety
-59.7%
Previous: -59.7%
Score history
12 stored score snapshots. Latest stored move: +0 points.
22 Oct 2026
v4.3-runtime-valuation
58
58
58
58
58
58
58
58
58
58
58
58
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹1,182.86
-395.3% MoS
Growth-justified P/E
32.1
Growth-justified Value
₹3,669.35
-59.7% MoS
PEG
1.47
Comparable companies
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.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
COFORGE
Mid
Coforge Limited
IT Services / Digital
match 167
47
44.7
21.4%
-25%
FAIR VALUE
MPHASIS
Mid
MphasiS Limited
IT Services / Digital
match 162
38
24.7
18.5%
-7%
WATCHLIST
KPITTECH
Mid
KPIT Technologies Limited
IT Services / Digital
match 159
56
23.6
20.9%
+20%
FAIR VALUE
HEXT
Large
Hexaware Technologies Limited
IT Services / Digital
match 156
60
25.1
24.9%
+14%
UNDERVALUED
NETWEB
Small
Netweb Technologies India Limited
IT Services / Digital
match 155
60
107.0
32.8%
-212%
UNDERVALUED
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-07-10T03:41:31.533Z
Management commentary snapshot
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.
Current business mix
Combined Revenue by Geography
Latest issuer-disclosed distribution across 3 reported categories.
North America62.0%
Europe22.0%
Rest of the World16.0%
Growth engines
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.
Capacity and execution
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.
Tailwinds
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.
Risk radar
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
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
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.
Sector KPIs management disclosed
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%.
Management forward view
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.
Thesis monitor
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
operational efficiencynot yet verifiablequantified
Company will achieve 100% compliance for code of conduct training.
Timeframe: Long-termDirection: IncreaseConfidence: High
"100% compliance for code of conduct training"
operational efficiencynot yet verifiablequantified
Company will achieve 100% compliance for code of conduct training.
Timeframe: Long-termDirection: IncreaseConfidence: High
"100% compliance for code of conduct training"
operational efficiencynot yet verifiablequantified
Company will source 100% of electricity from renewable energy at all owned facilities.
Timeframe: By the end of FY26Direction: IncreaseConfidence: High
"Source 100% of electricity from renewable energy at all owned facilities by the end of FY26"
operational efficiencynot yet verifiablequantified
Company will source 100% of electricity from renewable energy at all owned facilities.
Timeframe: By the end of FY26Direction: IncreaseConfidence: High
"Source 100% of electricity from renewable energy at all owned facilities by the end of FY26"
operational efficiencynot yet verifiablequantified
Company aims for 35% gender diversity.
Timeframe: By FY30Direction: IncreaseConfidence: High
"Aim for 35% gender diversity by FY30"
operational efficiencynot yet verifiablequantified
Company aims for 35% gender diversity.
Timeframe: By FY30Direction: IncreaseConfidence: High
"Aim for 35% gender diversity by FY30"
operational efficiencynot yet verifiablequantified
Company will maintain carbon neutrality for scope 1 and 2 emissions and achieve SBTi-approved net-zero emission reduction targets.
Timeframe: By 2050Direction: Maintain/AchieveConfidence: High
"achieve SBTi-approved net-zero emission reduction targets by 2050"
operational efficiencynot yet verifiablequantified
Company will maintain carbon neutrality for scope 1 and 2 emissions and achieve SBTi-approved net-zero emission reduction targets.
Timeframe: By 2050Direction: Maintain/AchieveConfidence: High
"achieve SBTi-approved net-zero emission reduction targets by 2050"
Trust Score
89High Trust · medium confidenceClaim-tested Trust
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.
Computed 22 Oct 2026
management-trust-v1
50 extracted concalls · 3/12 claims matched
Score band
High Trust
Management behaviour ranks as unusually reliable. Still verify valuation and cycle risk.
Relative rank
100th percentile
overall median 67 · IT: 99th pctile, median 69 · Mid: 100th pctile, median 76
Evidence depth
Early sample
3/12 claims checked. Use as directional, not final.
Claim delivery
100% delivered or partly delivered
3/12 claims checked · No contradicted claim yet
How to read this Trust Score
High Trust · medium confidenceWhat it measures
Reliability of management and financial delivery, using management claims matched with later outcomes.
Confidence
Useful directional evidence exists, but still verify the latest filings.
Investor use
Can support position sizing if valuation and trend also agree.
Read 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.
Promoter
78
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
96
strong · leverage and solvency
Discipline
98
strong · capital discipline
Results
95
strong · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.3%.
- ▸11 years of positive FCF.
- ▸Debt/equity is 0.07.
Trust risks
- ▸No major Trust Lite risk flags.
Continue researching Persistent Systems Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Announcement
Announcement under Regulation 30 (LODR)-Issue of Securities 16 Oct - Approved NCDs up to ₹8,000 crore and CP up to ₹1,000 crore for Nagarro SE acquisition financing.
Source: Bse
Credit rating
Announcement under Regulation 30 (LODR)-Credit Rating 9 Oct - ICRA assigned AA+ rating watch negative for proposed ₹5,000 crore NCDs; issuer rating remains AA+.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Press Release / Media Release 9 Oct - Persistent secures 94.04% stake in Nagarro; takeover offer succeeds, with closing expected by Q1 CY27.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Amendments to Memorandum & Articles of Association 6 Oct - Members approved amendment to Article 12(iii) enabling further share issues under special resolution.
Source: Bse
Announcement
Announcement Of The Voting Results Of The 36Th Annual General Meeting Of The Company 5 Aug - Persistent Systems disclosed 36th AGM voting results on 12 resolutions; all passed, including dividend of INR 40 per share.
Source: Bse
Credit rating
Announcement under Regulation 30 (LODR)-Credit Rating 7 Jul - ICRA placed Persistent Systems’ AA+ issuer rating on negative watch after Nagarro acquisition announcement.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome 20h - Persistent held June 30 investor session with Kotak MF, reiterating Nagarro business-combination details.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 17 Jun - Persistent Systems schedules one-on-one investor sessions with Axis Max Life, Eternalis Capital Trust and Polar Capital on June 22-23, 2026.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Press Release / Media Release 17 Jun - Persistent marks 10 years in Mexico, strengthening nearshore engineering for Americas clients.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome 9 Jun - Persistent Systems held one-on-one investor session with Creagis; Coatue Management LLC session scheduled for June 9 was cancelled.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Press Release / Media Release 9 Jun - Persistent Systems ranked 13th in Hurun India Impact 50-2026, highlighting ESG and sustainability leadership.
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.