Persistent Systems Reports Strong Q2 Results, Targets 17% Revenue CAGR
Persistent Systems announced robust Q2 financial results with revenue of ₹35,807.20 crore ($406.20 million), up 17.6% year-over-year. EBIT stood at ₹5,837.40 crore with a 16.3% margin, while PAT increased by 45.1% to ₹4,714.70 crore. The company targets a 17% revenue CAGR, focusing on AI-driven initiatives, client base expansion, and maintaining a 16% EBIT margin. Persistent's growth strategy leverages AI platforms like SASVA and iAURA across various industries. Significant client wins were reported in infrastructure, cybersecurity, fintech, and wealth management sectors.
*this image is generated using AI for illustrative purposes only.
Persistent Systems has reported robust financial results for the second quarter, alongside ambitious growth targets driven by its AI strategy and expanding client base.
Financial Highlights
- Revenue: ₹35,807.20 crore ($406.20 million), up 17.6% year-over-year
- EBIT: ₹5,837.40 crore, with a margin of 16.3%
- Profit After Tax (PAT): ₹4,714.70 crore, representing a 45.1% year-over-year increase
Key Performance Indicators
| Metric | Q2 | YoY Growth |
|---|---|---|
| Revenue | ₹35,807.20 crore | 17.6% |
| EBIT | ₹5,837.40 crore | 43.7% |
| PAT | ₹4,714.70 crore | 45.1% |
| EBIT Margin | 16.3% | - |
| PAT Margin | 13.2% | - |
Growth Strategy and AI Focus
Persistent Systems has outlined an ambitious growth strategy, targeting a 17% revenue compound annual growth rate (CAGR). This strategy is underpinned by:
- AI-driven initiatives
- Expansion of client base
- Maintenance of a 16% EBIT margin
- Projected 45% increase in profit after tax
The company's focus on AI-led, platform-driven services is expected to be a key driver of this growth. Persistent is leveraging its SASVA platform for AI infrastructure and iAURA for process and document intelligence across various industries.
Segment Performance
- Banking, Financial Services and Insurance (BFSI): ₹12,455.60 crore
- Healthcare & Life Sciences: ₹9,027.32 crore
- Software, Hi-Tech and Emerging Industries: ₹14,324.28 crore
Client Acquisition and Expansion
Persistent Systems reported significant wins across various sectors:
- Collaboration with a global infrastructure provider to scale AI infrastructure platforms
- Development of R&D for endpoint security products for a global cybersecurity leader
- Transformation of tax and accounting software for a global fintech platform
- Leveraging GenAI to improve customer experience for a leading wealth management company
Management Commentary
Sandeep Kalra, CEO and Executive Director of Persistent Systems, stated, "We are pleased to report our 22nd sequential quarter of revenue growth, up 4.2% Q-o-Q and 17.6% Y-o-Y, with operating margin improving to 16.3%. Our AI strategy builds on a strong platform-led foundation and is powered by deep domain knowledge, differentiated IPs, accelerators and strategic partnerships."
Industry Recognition
The company's performance has been recognized by several industry accolades:
- Received the 'Growth Honor of the Year' at Everest Group Elevate 2025
- Named a Leader in the Everest Group Talent Readiness for Next-generation Cloud Services PEAK Matrix® Assessment 2025
- Won multiple ISG Customer Experience (CX) Star Performer Awards
Conclusion
Persistent Systems' strong Q2 results and ambitious growth targets reflect its strategic focus on AI-driven solutions and expanding client relationships. The company's ability to maintain high growth rates while improving profitability positions it well in the competitive IT services landscape.
As Persistent Systems continues to invest in AI capabilities and expand its service offerings, it appears well-positioned to capitalize on the growing demand for digital transformation and AI-powered solutions across various industries.
Historical Stock Returns for Persistent Systems
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.15% | +1.27% | -0.48% | +13.19% | -4.96% | +679.77% |
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