Persistent Systems' shares surged over 7% on October 15. The company's net profit in the September quarter rose 45% to Rs 471.4 crore, and revenue increased 23.6% to Rs 3,580.7 crore. Brokerage firms have revised share ratings and target prices, but caution is being exercised due to high valuations.
Persistent Systems Shares: Shares of IT company Persistent Systems saw a surge of over 7% on October 15, 2025, with its price reaching Rs 5,730 during trading hours. This rally followed the company's September quarterly results, which showed net profit increasing by 45% to Rs 471.4 crore and revenue rising by 23.6% to Rs 3,580.7 crore. Brokerage firm CLSA issued an “Outperform” rating with a target price of Rs 8,270, while HSBC and Nomura maintained “Hold” and “Neutral” ratings, respectively. Investors are advised to remain cautious due to high valuations.
Excellent September Quarter Results
Persistent Systems announced its quarterly results on Tuesday, October 14. According to the company, net profit in the September quarter rose 45% to Rs 471.4 crore, surpassing market expectations. Revenue also increased by 23.6% to Rs 3,580.7 crore. Operating profit surged 44% to Rs 583.7 crore, and margins improved to 16.3%.
The company reported a Total Contract Value (TCV) of $60.92 crore and an Annual Contract Value (ACV) of $44.79 crore for the quarter. These figures clearly indicate that Persistent Systems' order book remains b.
Strong EPS Growth Expected for FY25–27
Brokerage firm CLSA has given Persistent Systems' shares an "Outperform" rating and set a target price of Rs 8,270 per share. CLSA stated that this quarter proved b for the company, with improvements observed across all fronts including order book, revenue, margins, return on equity, and free cash flow. CLSA also projected a target of $2 billion in revenue by FY27 and an estimated 29% CAGR in EPS for FY25–27.
On the other hand, HSBC maintained a “Hold” rating on the company's shares but raised its target price to Rs 6,000 per share. The bank noted b growth and improved profitability. However, HSBC warned that the company's high valuation could limit further upside.
Nomura assigned a “Neutral” rating to the stock and set a target price of Rs 5,200. Nomura noted that margins improved due to reduced software license costs, and EPS estimates for FY26–FY28 were increased by 3–5%. However, Nomura also stated that the stock is trading at 37.5 times its FY27 EPS valuation, which is expensive.
Share Performance and Valuation
Around 10:45 AM, Persistent Systems' shares were trading at Rs 5,675, up 6.32%. Over the past year, the share's performance has been largely flat. Currently, the stock is trading at a P/E ratio of 58 times and has a dividend yield of 0.62%.
The b rally in the company's shares in recent months is based on consistent performance and a robust order book. Investors are currently focused on the company's future growth and quarterly results.
