Hold Persistent Systems: target of Rs 6440 : ICICI Securities

ICICI Securities recommended hold rating on Persistent Systems with a target price of Rs 6440 in its research report dated January 21, 2026.

Broker Research

January 30, 2026 / 21:07 IST

Hold

ICICI Securities's research report on Persistent Systems

Persistent Systems’ (PSYS) strong revenue growth of 4.1% QoQ CC in a furlough quarter (Q3FY26) was aided by an increase in software license sales (up 44% QoQ USD) and healthy growth in services business (+2.6% QoQ USD). We note software license sales are a combination of third-party software license pass-through revenue and PSYS’s own AI platform revenue and could be lumpy in nature. However, robust deal win momentum and strong execution on driving AI-led productivity improvement reflected in margin tailwind of 150bps in Q3FY26 and rise in revenue per employee by 8.9% YoY provides comfort of sustenance of industry leading revenue growth and consistent margin improvement.

Outlook

We tweak FY27–28E EPS, retain one-year forward P/E multiple at 40x to arrive at TP of INR 6,440. Retain HOLD.

For all recommendations report, click here