Persistent Systems has received an upgrade to BUY rating from Anand Rathi with a target price of ₹7,587.00, as the IT services company continues its strong growth trajectory and sets ambitious revenue targets for the coming years.

Strong Quarterly Performance Drives Upgrade

The brokerage firm highlighted Persistent Systems' consistent performance, with the company delivering 4.10% quarter-on-quarter and 17.30% year-on-year constant currency revenue growth to $423.00 million. This growth was supported by a healthy order book and continued deepening of relationships with large clients.

Ambitious Revenue Targets and Strategic Focus

During the quarter, management positioned the company's medium-term ambition of achieving $2.00 billion revenue by FY27 and $5.00 billion aspiration by FY31. This growth strategy is expected to be led by AI-led, platform-driven execution, reflecting the company's focus on emerging technologies and innovative service delivery.

The company's growth was broad-based, with BFSI leading the charge while both Europe and North America regions demonstrated strong year-on-year growth. This geographical diversification supports the company's resilient business model.

Deep Domain Expertise and Client Concentration

Persistent Systems continues to emphasize its deep domain expertise playbook, which is anchored in its top accounts. The company generates approximately 82.00% of its revenue from the top 100 clients, with this concentration increasing by more than 20.00%. This client concentration strategy supports both near-term growth momentum and multi-year wallet-share expansion opportunities.

Recent Financial Performance

The company's standalone performance for December 2025 showed robust growth, with net sales reaching ₹3,718.50 crores, representing a substantial 23.88% year-on-year increase. This strong financial performance underpins the positive analyst sentiment and upgrade decision.

Anand Rathi's upgrade reflects confidence in Persistent Systems' ability to maintain its consistent compounding narrative while executing on its ambitious growth plans through strategic focus on AI-driven solutions and platform-based service delivery.

Leading brokerage firms have maintained their positive outlook on select stocks across the IT services, consumer staples, and auto ancillary sectors, citing strong operating performance, improving margins, and supportive demand trends as key drivers for their recommendations.

Nuvama's Positive Stance on IT and Consumer Sectors

Nuvama has expressed continued confidence in Persistent Systems and United Spirits, maintaining a constructive view on both companies. The brokerage firm has highlighted several factors supporting its positive outlook:

Despite acknowledging potential near-term headwinds in the market, Nuvama remains optimistic about the long-term prospects of these companies, particularly emphasizing their strong execution capabilities and stable margin profiles.

Motilal Oswal's Auto Sector Recommendations

Motilal Oswal has maintained its bullish stance on the auto ancillary sector, with specific focus on companies demonstrating robust operational metrics. The brokerage continues to see value in select stocks within this segment, supported by improving industry fundamentals and favorable demand conditions.

Sector-Wide Performance Indicators

The positive recommendations from these leading brokerage firms reflect broader trends across multiple sectors:

• IT Services: Strong execution and margin stability
• Consumer Staples: Resilient demand patterns
• Auto Ancillary: Improving operational metrics

These sectors are benefiting from a combination of operational improvements and favorable market conditions, leading to sustained confidence from institutional analysts and investment firms.