Persistent Systems Q1 FY26 Results Signal Bright Outlook

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Ability of Persistent Systems to secure high-value contracts and maintain profitability underscores resilience: Analysts

By S JHA

MUMBAI, July 24, 2025 –Persistent Systems Ltd., a global leader in digital engineering and enterprise modernization, reported stellar financial performance for the first quarter of fiscal year 2026 (Q1 FY26), showcasing consistent growth and operational excellence.

The Pune-headquartered company in its results highlighted a 21st consecutive quarter of sequential revenue growth, reinforcing its position as a standout performer in the IT services sector.

According to the official press release from Persistent Systems, the company achieved $389.7 million in revenue, reflecting an 18.8% year-over-year (YoY) growth and 3.9% quarter-over-quarter (QoQ) growth in USD terms. In INR, revenue reached ₹3,333 crore, up 21.8% YoY and 2.8% QoQ.

EBIT increased by 34.8% YoY and 2.5% QoQ, reaching ₹518 crore. Profit after tax (PAT) surged by 38.7% YoY and 7.4% QoQ to ₹424.93 crore.
On order booking, the company said that it has recorded a total contract value (TCV) of $520.8 million and an annual contract value (ACV) of $385.3 million, indicating a strong pipeline for future growth. The company’s press release emphasized, “We have opened FY26 on a strong note, delivering solid results in Q1. This quarter marks our 21st consecutive quarter of sequential growth, driven by our focus on innovation and client-centric solutions.”

On X, @EquityInsightss noted, “Persistent Systems: Keeps on delivering.” Analysts also noted higher other income contributing to the robust financials.

Persistent Systems’ management remains optimistic about sustained growth, with aspirations to reach $2 billion in revenue by FY27 and $5 billion by FY31, as noted by @_soniashenoy on X. The company’s focus on digital transformation, cloud, and AI-driven solutions has strengthened its market position.

However, the stock’s valuation at 50x FY26 P/E was flagged as expensive, reflecting investor confidence but also a premium price. The company’s ability to secure high-value contracts and maintain profitability amidst global economic uncertainties underscores its resilience.

The IT sector has faced headwinds, with larger players reporting cautious guidance due to macroeconomic challenges. Earlier, the street had showed disappointment with Q1FY26 results of HCL Technologies and TCS.

Shares of Persistent Systems had closed at $5604 on Wednesday. The stock is trading at a discount from its peak of ₹6700. The stock is trading at a PE multiple of 57.7.

(Disclaimer: This article makes no recommendation for buy or sell of shares of any company)

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