Accumulate Persistent Systems; target of Rs 5790: Deven Choksey

Deven Choksey's research report on Persistent Systems

Persistent Systems Q1FY26 revenue came in at INR 33,336 Mn, up 21.8% YoY (+2.8% QoQ), in-line with our estimates, primarily driven by robust performance in the BFSI segment, with incremental contributions from Software, HiTech, and Emerging Markets verticals, partially offset by softness in healthcare and Life Sciences. In CC terms, it delivered a growth of 3.3% sequentially (vs 4.5% in Q4FY25). In USD terms, revenue stood at 389.7 Mn, up 18.8% YoY (+3.9% YoY).

Outlook

We have rolled forward our valuation basis to Jun’27 estimates. We value Persistent Systems at 40.0x Jun’27 EPS, implying a target price of INR 5,790. We upgrade our rating from “HOLD” to “ACCUMULATE” on the stock.