Persistent Systems’ shares attracted attention following the company’s impressive Q2 financial results, which lifted investor sentiment and prompted brokerages to issue bullish recommendations.
On Tuesday, Persistent reported a 45% year-on-year increase in consolidated net profit for the quarter ending September 2025, rising to ₹471.5 crore from ₹324.9 crore in the same quarter last year. Additionally, revenue from operations rose 23.5%, reaching ₹3,580.7 crore compared to ₹2,897.2 crore for the corresponding period last year. The board also authorized the transfer of 100% shareholding of Aepona Group Ltd., Ireland, from Persistent Systems Inc., USA, to Persistent Systems Ltd.
Brokerages have expressed a positive outlook on the company’s stock. CLSA, for instance, reaffirmed its “outperform” rating and raised its target price to ₹8,270. Nuvama reiterated a buy rating, raising its target price to ₹7,000. The firm noted that despite macroeconomic challenges and tariff uncertainties, Persistent’s robust revenue growth and ongoing margin expansion have resulted in impressive earnings, positioning the stock for consistent outperformance.
Motilal Oswal maintained a buy rating with a new target price of ₹6,550, forecasting a 19% USD revenue compound annual growth rate (CAGR) over FY25-27. Such growth, along with margin improvements, could yield a 26% EPS CAGR. HDFC Securities highlighted broad-based growth, particularly in the BFSI sector and Europe. They noted that the company is advancing its AI-driven, platform-centric strategy, having filed 20 new patents for its SASVA platform and secured multi-year contracts across key sectors. While recognizing that recent wage increases might impact near-term margins, HDFC Securities remains optimistic about management’s ability to offset such effects through operational efficiencies, assigning an “add” rating with a target price of ₹6,200.
JM Financial has also raised its target price to ₹6,140 from ₹5,870, retaining a buy recommendation. HSBC maintained a “hold” rating but increased its target price to ₹6,000, while Nomura kept a neutral rating with a target price of ₹5,200.
In response to these developments, the market reacted swiftly, pushing the stock up over 7% to an intraday high of ₹5,728.90 on the BSE. The stock was trading at ₹5,692.70 at 10:43 AM, reflecting a 6.91% gain after opening at ₹5,545, following a previous close of ₹5,324.25. This upward movement indicates renewed investor confidence in Persistent’s operations and future prospects.
Published on October 15, 2025.
