According to latest research reports dated October 16, 2026, Prabhudas Lilladher has downgraded Persistent Systems to ACCUMULATE from BUY with a target price of ₹6,550, while ICICI Securities maintains a HOLD rating with a target price of ₹5,670. Both brokerages have set their target prices based on a valuation of 32x September 2028 estimated earnings per share, though their recommendations differ due to varying outlook assessments. The consensus share price target of ₹5,742 with an average upside of 2.97% indicates mixed analyst sentiment on the stock's near-term prospects.
As reported by both Prabhudas Lilladher and ICICI Securities, Persistent Systems delivered revenue growth of 7.8% quarter-on-quarter in constant currency terms, with 20.8% year-on-year growth in constant currency. The growth was primarily driven by healthy performance in the BFS (Banking, Financial Services) and Hi-Tech verticals, attributed to a ramp-up of a large deal worth USD 650 million. However, Healthcare Lifesciences remained flat for the second consecutive quarter, while Europe declined 10% QoQ in USD terms due to two client-specific issues. Recent analyst reports suggest FY27 revenue is expected to track 18-20% growth in constant currency, supported by continued execution on the USD 650M+ strategic agreement and balanced vertical momentum across Healthcare, BFSI, and Technology sectors.
According to the research reports, the weakness in deal total contract value (TCV) and annual contract value (ACV) growth of 4.0% and 7.4% year-on-year respectively was disappointing, primarily due to slower decision-making and deferred deal closure. However, TTM TCV and ACV reported growth of 36.3% and 22.0% year-on-year respectively. The EBIT margin of 15.0% was healthy but lower sequentially due to wage hike impact of 140 basis points QoQ and incremental investments in licensing and software tools of 32% QoQ. Management expressed confidence in achieving 16-17% EBIT margin for FY27E. Recent analyst reports indicate strong deal wins with TCV/ACV growing 120%/39% YoY in Q1FY27, reflecting continued momentum in large account mining and resilient growth across major client buckets.
As reported by both brokerages, the management expects the compensation revision to be behind and the large deal (USD 650 million) to achieve full potential in Q3, which should enable operating leverage to support margin improvement in the second half of the fiscal year. Prabhudas Lilladher has kept its constant currency revenue growth estimates largely unchanged while revising the EBIT margin estimate downward to 16.0% for FY27E from the earlier 16.3%. ICICI Securities has rolled forward estimates by two quarters to Q3FY28-Q2FY29E EPS of ₹178 with an unchanged target multiple of 32x, arriving at their target price of ₹5,670. Recent analyst consensus suggests current trading multiples of 27x/23x P/E for FY27E/FY28E, with expectations of continued growth momentum across all three verticals despite escalating geopolitical tensions.
