Persistent Systems jumps 7% on posting Q2 results; brokerages hike target

Many brokerages have raised the target price on Persistent Systems after the company released its September quarter (Q2FY26) results on Tuesday, after market hours. Analysts said that the company has delivered consistently and offers clear visibility on growth.

 

At 9:22 AM, Persistent Systems’ shares were trading 6.29 per cent higher at ₹5658.9 per share. In comparison, BSE Sensex was up 0.37 per cent at 82,334.08. In the intra-day trade, the stock gained 6.6 per cent, logging a day’s high at ₹5678.8 per share. 

Persistent Systems Q2 results

Persistent Systems in Q2 reported a net profit of ₹471.4 crore in the July–September 2025 period, up 45 per cent year-on-year (Y-o-Y). The earnings before interest and taxes (EBIT), or operating profit, rose 43.7 per cent Y-o-Y to ₹583.7 crore.

 

 

The company’s revenue from operations also jumped 23.6 per cent Y-o-Y to ₹3,580.7 crore. Persistent Systems, which has 22,690 employees in India, had an order booking of $609.2 million in total contract value and $447.9 million in annual contract value during this period.

 

During the quarter, Persistent Systems won contracts in the software, hi-tech, and emerging industries, banking, financial services, insurance, healthcare, and life sciences verticals. 

Brokerages' view on Persistent Systems

Nomura has retained its ‘Neutral’ rating, but has raised the target to ₹5,200 per share from ₹5,000. The brokerage raised its FY26-28F earnings per share (EPS) by 3-5 per cent, setting at an unchanged 36x FY27F EPS. Nomura retained its ‘Neutral’ rating given the stock’s rich valuation. Persistent is trading at  37.5x FY27F EPS. 

 

Motilal Oswal Financial Services also reiterated ‘Buy’ but hiked the target to ₹6,550 from ₹6,400. The brokerage said, given the company’s consistent execution and visibility on growth, it raised target and maintained ‘Buy’. Further, analysts at Motilal Oswal expect revenue/Ebit/PAT to grow 22.1 per cent/24.7 per cent/25.5 per cent Y-o-Y in H2FY25. 

 

Nuvama Institutional Equities also retained ‘Buy’ and raised the target to ₹7,000 from ₹6,600. “Persistent Systems’ strong revenue growth (despite macro headwinds and tariff-led uncertainty) and continuous margin expansion are leading to industry-leading earnings growth, which should, in turn, lead to consistent outperformance by the stock,” Nuvama noted.

 

It upgraded the company’s FY26E/27 EPS by 3.4 per cent/2.4 per cent on slightly higher margin expectations and rolled forward valuation to 45x (earlier 48x) average of FY27E–28E PE.  JM Financial Institutional Equities maintained ‘Buy’ on Persistent Systems and raised its target to ₹6,140 per share from ₹5,870. Persistent Systems’ consistent, strong performance, despite unchanged macro, underlines its head-start in AI-offerings, relentless execution, and an eye on client diversification. This is a strong blueprint for predictable growth,” said JM Financial.