Persistent Systems shares rise 7% on 44% Q2 profit growth
Last Updated: 15 October, 2025
3 min read
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On Wednesday, the Persistent Systems shares rise 7.06% touching a day’s high price of Rs 5,715 on NSE after it reported robust Q2FY26 results, showing continued momentum in revenue growth, margin improvement, and notable deal wins. The company's performance positioned it as a standout among mid-cap IT firms, reflecting resilience despite global uncertainty and industry slowdown.
Financial Results Overview
For the quarter ending September 2025, Persistent Systems reported consolidated revenue of Rs 3,580.7 crore, marking 23.6% year-on-year growth and 7.4% sequential improvement. In USD terms, revenue was $406.2 million, a rise of 17.6% YoY and 4.2% QoQ, reflecting strong demand across key verticals such as BFSI and tech. Operating profit (EBIT) for the quarter stood at Rs 583.7 crore, up 43.7% YoY and 12.7% QoQ, with EBIT margin expanding to 16.3%, higher than the previous quarter’s 15.5%. Net profit surged 45.1% YoY and 11% sequentially to Rs 471.4 crore.
Key Deal Wins, TCV and Segments
Persistent secured robust order bookings, with Total Contract Value (TCV) for Q2FY26 at $609.2 million and Annual Contract Value (ACV) at $447.9 million, demonstrating strong client demand for digital engineering and cloud-led transformation services. BFSI led overall growth with 36% YoY improvement, followed by 21.50% in software and hi-tech, and 12% in healthcare and life sciences. The quarter saw significant deals from both domestic and international customers, expanding Persistent’s addressable market.
Attrition Rates
Headcount for Persistent Systems reached 22,690 in India by end of September 2025, indicating ongoing talent acquisition despite industry attrition challenges. The Q2 quarter saw attrition at moderate levels compared to industry averages, with 13.8% on TTM basis.
Management Outlook
CEO Sandeep Kalra highlighted stated “Driven by the continued trust of our clients, this performance reflects our commitment to impactful transformation and execution excellence.
Our AI strategy builds on a strong platform-led foundation and is powered by deep domain knowledge, differentiated IPs, accelerators and strategic partnerships. This integrated approach brings together enterprise readiness for AI transformation, engineering hyper-productivity and business hyper-productivity, enabling clients to scale innovation, modernize their core and achieve measurable impact faster.”
Analyst Target Prices and Rationale
Brokerages raised target prices post-results, with most houses assigning “Buy” or “Outperform” ratings, underscoring Persistent’s consistent execution and strong order book. Following the company’s Q2FY26 performance, CLSA has retained its ‘High Conviction Outperform’ rating with a target price of Rs 8,270 highlighting growth in order book, free cash flow to profit conversion. JPMorgan maintained ‘Outperform’ rating with a target price of Rs 7,400. Other analysts have raised their targets.
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