Persistent Systems , a leading IT company, saw its stock surge 8% following the announcement of its September quarter results on October 14. The company reported robust growth and record-breaking performance across key metrics, signaling strong momentum in its business operations.

Financial Highlights

Persistent Systems demonstrated impressive sequential revenue growth of 4.2% in Q2 FY24, reaching $406.20 million. This marks an improvement from the 3.9% growth recorded in the previous quarter, indicating accelerating business momentum.

Sector Performance

The healthcare vertical, which contributes over 25% of the company's revenue, showed a strong recovery with 4% sequential growth. This turnaround is particularly noteworthy, considering the 2.2% decline observed in the previous quarter.

Operational Excellence

Persistent Systems achieved a record quarterly operating margin of 16.3%. This exceptional performance was supported by:

• 80 basis points from software license cost reversal
• 60 basis points from currency benefits
• 20 basis points from increased offshoring

Strong Order Book

The company reported record quarterly order bookings of $609.20 million, primarily driven by renewal projects. This robust order book provides visibility for future revenue growth and underscores the company's strong market position.

Workforce Dynamics

Persistent Systems continued to expand its workforce, adding 884 employees during the quarter. The company maintained a stable attrition rate of 13.8%, indicating effective talent retention strategies in a competitive IT job market.

Future Outlook

Persistent Systems aims to achieve $2 billion in revenue by FY27. The company expects to maintain double-digit growth for FY26, showcasing confidence in its long-term growth trajectory.

However, investors should note that salary revisions implemented from October 1 are expected to impact margins by 80-100 basis points in the coming quarters.

Analyst Perspective

Motilal Oswal maintains a positive outlook on Persistent Systems, projecting:

• 19% revenue growth between FY25-FY27
• 26% earnings growth between FY25-FY27

Based on these projections, Motilal Oswal has reiterated a 'Buy' rating for Persistent Systems with a target price of Rs 6,550.

The strong Q2 FY24 results, coupled with a positive outlook and analyst endorsement, suggest that Persistent Systems is well-positioned for continued growth in the competitive IT services landscape.

Persistent Systems Limited (PSL), a leading technology services company, recently conducted a series of non-deal roadshows with prominent institutional investors. The company's engagement with these key market players underscores its commitment to maintaining transparent communication with the investment community.

Roadshow Details

PSL held meetings with several major institutional investors on October 16, 2025. The interactions were structured as both one-on-one sessions and a group meeting. The following table provides an overview of the roadshow schedule:

*Group meeting included Baroda BNP Paribas Mutual Fund, UTI Mutual Fund, Ashmore India Advisors, and Invesco Mutual Fund.

Information Shared

During these sessions, Persistent Systems reiterated the information previously communicated during its earnings call held on October 14, 2025, for the quarter ended September 30, 2025. The company emphasized that no additional information beyond what was disclosed in the earnings call was shared with the investors during the roadshow.

Previous Day's Interactions

PSL also engaged with investors on the previous day, October 15, 2025. The company held one-on-one meetings with HSBC Mutual Fund at 6:30 PM IST and Edelweiss Mutual Fund at 7:30 PM IST. These interactions were conducted in physical mode as part of the non-deal roadshow.

Regulatory Compliance

In compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Persistent Systems Limited has duly informed the National Stock Exchange of India Limited and BSE Limited about these investor interactions. This adherence to regulatory requirements demonstrates the company's commitment to maintaining transparency in its dealings with investors and the stock exchanges.

The non-deal roadshow serves as a platform for Persistent Systems to maintain open lines of communication with its institutional investors, providing them with insights into the company's performance and strategy, while strictly adhering to the principles of fair disclosure.