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The market expects much less from Persistent Systems than it has delivered before.
At today’s share price, buyers are assuming Persistent Systems grows about 15% a year, forever. Over the last ten years it actually grew about 23% a year. That is a big step down from its own record. Either the market can see a problem that the published accounts do not show yet, or it is expecting a slowdown that has not happened.
- How it is valued: Discounted cash flow.
- What the price assumes: 15% growth, against 23% the model takes from its own record.
- Ten-year record: Between FY2019 and FY2026, Persistent Systems' revenue went from ₹3,366 crore to ₹14,748 crore — it compounded at about 23% a year over 7 years.
- Biggest swing factor: Revenue growth. Main risk: Slowing growth.
01Software engineering from Pune
Persistent Systems was founded in Pune in 1990 by Anand Deshpande. It began as a product-engineering company building software for technology firms, and now provides digital engineering, cloud, data and AI services to banks, healthcare and technology companies.
Its growth has come from winning larger contracts and from small, targeted acquisitions, while keeping margins steady.
02What the market is assuming
Work backwards from today's share price and you can see what buyers are quietly taking for granted. Here is the growth that price implies for Persistent Systems, next to what the model assumes from the company's own record.
The further apart these two numbers are, the bigger the bet a buyer at today's price is making.
03Persistent Systems' record, in plain numbers
Between FY2019 and FY2026, Persistent Systems' revenue went from ₹3,366 crore to ₹14,748 crore — it compounded at about 23% a year over 7 years. Net profit grew from ₹352 crore to ₹1,865 crore, about 27% a year — faster than revenue, so margins widened. Net margin has been unusually stable, between 9.5% and 12.6% in every year shown. The latest year added 23.5% to revenue, close to its own long-run pace.
Revenue and earnings per share in ₹, return on equity and leverage as ratios — all from the filed statements.
Revenue and net profit by year (₹ crore)
| Year | Revenue | Net profit | Margin |
|---|---|---|---|
| FY2019 | 3,366 | 352 | 10.4% |
| FY2020 | 3,566 | 340 | 9.5% |
| FY2021 | 4,188 | 451 | 10.8% |
| FY2022 | 5,711 | 690 | 12.1% |
| FY2023 | 8,351 | 921 | 11.0% |
| FY2024 | 9,822 | 1,093 | 11.1% |
| FY2025 | 11,939 | 1,400 | 11.7% |
| FY2026 | 14,748 | 1,865 | 12.6% |
04How Persistent Systems gets valued — and why
Discounted cash flowThis business is valued on the cash it is expected to generate, discounted back at its cost of capital — with growth taken from its own ten-year record rather than from guidance.
05What decides Persistent Systems' value
Revenue growth
Large deal wins sustain growth well above the industry.
Margins
Holding margins while growing fast is the key test.
Client mix
Banking, healthcare and tech clients drive demand.
AI services
New AI work could add growth.
06What could go wrong
- Slowing growth. A slowdown matters more for a company priced for growth.
- Client budgets. Discretionary IT spending is cut first in a downturn.
- Talent costs. Wage inflation pressures margins.
07What the full Persistent valuation shows
Sign in free to see the complete Persistent Systems valuation
- ✓Fair value per share — from a ten-year discounted cash flow, every step shown
- ✓The Workbench — change revenue growth, the discount rate or terminal growth and watch Persistent's value move
- ✓Bull, base and bear cases — and exactly which assumptions move between them
- ✓Peer comparison — against Coforge, Infosys and TCS
- ✓Downloadable report — the full write-up, yours to keep
08Compare Persistent Systems with peers
The same valuation, run side by side.
Persistent Systems vs CoforgeThe two fastest-growing mid-cap IT names, side by side.→Persistent Systems vs InfosysA mid-cap challenger against a large-cap incumbent.→Persistent Systems vs Tata Consultancy ServicesNimble growth against the scale leader.→09Questions people ask about Persistent Systems
Why has Persistent grown so fast?
Larger deal wins, strong positions in banking and healthcare, and targeted acquisitions.
Is Persistent a large-cap IT company?
It is smaller than TCS or Infosys but has grown into one of India's larger mid-sized IT firms.
Persistent or Coforge — which is better value?
The two fastest-growing mid-sized IT names, compared side by side on their own page.
Is Persistent Systems overvalued?
At ₹6,003 the market is pricing in roughly 15% sustained growth, against the ~23% its own record supports. That is less than it has delivered — on these numbers the market is asking the business for less than its own record, which usually means it doubts the record repeats.
What is the intrinsic value of Persistent Systems?
It is computed from the filed financial statements using the method that fits this business (discounted cash flow), with every assumption shown alongside the result. The per-share figure and the full working are in the report.