Persistent Systems Q4 Results: Posts 25% Profit Surge to ₹396 Crore and Growth Outlook
Business and Industry Overview:
Persistent Systems is a technology services company from India. It was founded in 1990 and is based in Pune, Maharashtra. The company helps businesses with digital transformation and software development. It works with industries like healthcare, banking, retail, and telecommunications. Persistent offers services like cloud computing, artificial intelligence, data analytics, and enterprise applications. The company serves clients in many countries, including North America, Europe, and Asia. Persistent is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It earns more than ₹10,000 crore in revenue each year. The company has grown by buying other companies that specialize in cloud technology and AI. Persistent Systems is known for its focus on innovation and technology. It works with large global companies to help them improve their digital operations. The company has built strong, long-lasting relationships with its clients by providing high-quality solutions. Persistent also invests in research and development to stay ahead in the technology field. This has helped the company become a key player in the global IT services market.
Latest Stock News:
Persistent Systems had a strong performance in the fourth quarter of FY25, which led to a 4% increase in its stock price. The company reported a net profit of ₹395.76 crore, showing a significant 25.5% growth compared to the same period last year. This means the company earned a lot more than it did in Q4 of the previous year. In terms of revenue, Persistent Systems earned ₹3,242.1 crore during this quarter. This is a 6% increase from the previous quarter and a 25% growth compared to the same quarter last year. This shows that the company is not only growing year over year but also improving its performance from the previous quarter. Additionally, Persistent Systems announced a final dividend of ₹15 per share. This is part of the company’s effort to reward its shareholders. When companies do well, they often share some of their profits with the investors in the form of dividends, which is why the company declared this payment. Analysts who follow the company are very positive about its future. Out of 41 analysts who cover Persistent, many have given strong recommendations, which suggests that they believe the company will keep growing. The company has also set its revenue growth expectations for the next few years, aiming for an increase of 15% to 18%. This shows that the company is confident in its ability to continue its growth. As a result, analysts have set a target price of ₹7,600 for Persistent’s stock, which is higher than the current stock price, indicating they expect further gains. This good financial performance, combined with the company’s growth plans and strong outlook from analysts, has led to increased investor confidence, pushing the stock price up. Investors believe that Persistent Systems is well-positioned for the future, and this is reflected in the rise in the stock’s value.
Segmental information:
- Digital Transformation: Persistent helps companies use new technologies like cloud computing, artificial intelligence (AI), and data analytics. This helps businesses improve how they work, save money, and provide better services to customers.
- Software Engineering Services: The company builds custom software to meet the specific needs of its clients. This includes creating and maintaining software for different industries like healthcare, banking, retail, and telecom.
- Cloud Services: Persistent helps businesses move their systems and data to the cloud. This makes their operations more flexible and cost-effective. They also help with cloud setup, migration, and building cloud-based applications.
- Enterprise Applications: Persistent helps big companies set up and manage software like SAP, Salesforce, and Oracle. These tools help businesses manage their resources, customer relationships, and finances.
- AI & Data Analytics: Persistent uses AI and data analytics to help companies make better decisions. By looking at large amounts of data, they find patterns that help businesses grow.
- Life Sciences & Healthcare: Persistent provides services to the healthcare and life sciences industries. They help with things like drug discovery, managing patient data, and using data to improve healthcare.
- Telecommunications & Media: Persistent works with telecom and media companies to improve their operations. This includes managing networks, improving customer experiences, and offering digital media services.
Subsidiary information:
- Persistent Systems Inc. (USA) – Handles business in North America.
- Persistent Systems UK Limited – Operates in the United Kingdom.
- Persistent Systems Germany GmbH – Works in Germany.
- Persistent Systems France SAS – Manages operations in France.
- Persistent Systems Australia Pty. Ltd. – Focuses on the Australian market.
- Persistent Systems Costa Rica Limitada – Operates in Costa Rica.
- Persistent Systems Mexico, S.A. de C.V. – Handles business in Mexico.
- Persistent Systems Poland Sp. z o.o. – Works in Poland.
- Persistent Systems Pte Ltd. (Singapore) – Provides services in Singapore.
- Persistent Systems Switzerland AG – Operates in Switzerland.
- Persistent Systems Israel Ltd. – Works in Israel.
- Persistent Systems Malaysia Sdn. Bhd. – Operates in Malaysia.
- Persistent Systems Lanka (Private) Limited – Focuses on Sri Lanka.
- Persistent Telecom Solutions Inc. (USA) – Provides telecom solutions in the U.S.
- MediaAgility Inc. (USA) – Offers cloud services in the U.S.
- Digitalagility S. DE R.L. de C.V. (Mexico) – Provides digital services in Mexico.
- CAPIOT Software Private Limited (India) – Operates in India.
- Arrka Infosec Private Limited (India) – Focuses on cybersecurity in India.
- Aepona Group Limited (Ireland) – Works in Ireland.
- Fusion360 LLC (USA) – Provides digital transformation services in the U.S.
- Shree Partners (USA & India) – Offers IT and cloud management services.
Q4 Highlights:
- Persistent Systems saw a higher-than-expected constant currency revenue growth of 4.5%, surpassing analysts’ estimates of 3.7%-3.8% for the March quarter.
- The company’s revenue growth of 4.5% was stronger than the same period last year (3.4%) and slightly lower than the previous quarter (4.6%), demonstrating steady performance.
- Persistent Systems improved its EBIT margin by 70 basis points to 15.6%, reflecting better operational efficiency compared to the previous quarter’s 14.9% and last year’s 14.5%.
- Although deal wins slowed to $517.1 million in Q4 FY25 from $594.1 million in the December quarter, they were still significantly higher than the $447.7 million in Q4 FY24.
Financial Summary:
| Amount in ₹ Crore | Q4 FY24 | Q4 FY25 | FY24 | FY25 |
| Revenue | 2,591 | 3,242 | 9,822 | 11,939 |
| Expenses | 2,136 | 2,658 | 8,146 | 9,881 |
| EBITDA | 454 | 584 | 1,676 | 2,058 |
| OPM | 18% | 18% | 17% | 17% |
| Other Income | 31 | 18 | 128 | 138 |
| Net Profit | 315.00 | 396 | 1,093 | 1,400 |
| NPM | 12.16 | 12.21 | 11.13 | 11.73 |
| EPS | 20.47 | 25.59 | 70.98 | 90.54 |