According to Motilal Oswal's research report dated October 15, 2026, Persistent Systems delivered robust second quarter results for FY27. The company reported revenue of USD 488 million, exceeding estimates of USD 475 million and representing growth of 7.8% quarter-on-quarter in both USD and constant currency terms. EBIT margin stood at 15%, slightly below the estimated 15.6%, while EBIT grew 1.6% QoQ and 19.5% YoY to ₹6.9 billion. Adjusted PAT came in at ₹4.9 billion, up 2.2% QoQ and 4.7% YoY, though this fell short of the estimated ₹5.7 billion. The results exclude Nagarro acquisition-related expenses of ₹1.9 billion (post-tax ₹1.4 billion).
As reported by Motilal Oswal, Persistent Systems demonstrated strong momentum across key metrics for the first half of FY27. Revenue, adjusted EBIT, and adjusted PAT grew 29.7%, 25.7%, and 9.0% year-on-year respectively in INR terms. The company's total contract value (TCV) stood at USD 634 million, declining 44.7% quarter-on-quarter but increasing 4.4% year-on-year, representing a book-to-bill ratio of 1.3x.
According to the research report, Motilal Oswal expects continued strong performance in the second half of FY27, projecting revenue, adjusted EBIT, and adjusted PAT to grow 26.5%, 25.1%, and 24.8% year-on-year respectively. The brokerage values Persistent Systems at 35x FY28E EPS and maintains its buy rating with a target price of ₹6,700. This target price represents significant upside potential from current levels, reflecting the company's strong operational performance and growth prospects in the technology services sector.
