Persistent Systems

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• DebtHigh safetyRated AA+ by CRISIL.
• ResultsProfit fallingIn the Sep 2026 quarter, sales rose 30% and profit fell 25% from a year earlier.
• DilutionSome dilutionIssued 76.8 lakh new shares in the last year (+5.3%), raising ₹4,265 Cr.
• PromotersSteadyThe promoters (founders or parent) own 30% of the company, about the same as in Sep 2025.
• ValuationNormal for this stockThe share trades at 48.4 times its yearly earnings (P/E), cheaper than 54% of the time in the last 5 years. Its usual P/E is about 19.

Persistent Systems against the typical company in its industry. The rank is out of the companies that report each figure; green means the better quarter of the pack, red the worse quarter.

• Valuation (P/E)48.4 against a typical 21.9: pricier than most peers (1st = cheapest).82nd of 108
• Sales growth+30.2% against a typical +10.6% from a year earlier.22nd of 90
• Profit growth−25.3% against a typical +1.1% from a year earlier.60th of 75
• Share price, 3 months+6.4% against a typical −8.4%.24th of 97
• Size₹ 89,925.4 Cr. market value against a typical ₹ 218.6 Cr. (1st = largest).6th of 101

Exchange filings and their impact on the company.

• 26 Oct 2026Committee Meeting UpdatesHigh impactPositivePrice −0.3% on 27 Oct
  Allotted 7.68m shares at Rs 5,550 to raise Rs 4,265 cr, lifting net worth ~54% with ~4.6% EPS dilution.

  Persistent Systems allotted 7,683,981 shares at Rs 5,550 each to qualified institutional buyers, raising Rs 4,264.61 crore. The issue price was at a 3.66% discount to floor price and the issue was open from October 21 to October 26, 2026. Paid-up capital rose to 165,833,981 shares, strengthening the balance sheet with modest dilution.

  Full analysisFiling
• 26 Oct 2026Committee Meeting UpdatesHigh impactPositivePrice −0.3% on 27 Oct
  Closed Rs 4,265 cr QIP at Rs 5,550, lifting net worth ~54% with minor dilution.

  Persistent Systems closed its QIP on October 26, 2026, allotting 7.68 million shares at Rs 5,550 per share, a 3.66% discount to the Rs 5,761 floor price, to raise about Rs 4,265 crore from institutional investors. The company approved the placement document and allocation notes for the issue. The proceeds significantly boost its equity base and cash, supporting future growth and acquisition funding with modest dilution.

  Full analysisFiling
• 23 Oct 2026Analysts/Institutional Investor Meet/Con. Call UpdatesHigh impactPositivePrice +2.1% on 26 Oct
  Record 20% YoY growth and strong deal intake drive revenue, but margins, reported profit and leverage weigh from large-deal costs and Nagarro deal.

  Persistent reported Q2 FY27 revenue of USD 487.6 million, up 20% year-on-year and 7.8% quarter-on-quarter, its 26th straight growth quarter, with new TCV of $633.5 million. EBIT margin fell to 15% on wage hikes and costs from its $650 million large deal, and reported profit fell 25% to Rs 351.5 crore due to Rs 185 crore of Nagarro deal costs. The company has secured 94% of Nagarro shares, expects to close by early 2027, and will fund the deal with $1.25 billion of debt and equity including a $450 million QIP.

  Full analysisFiling
• 21 Oct 2026Committee Meeting UpdatesHigh impactPositivePrice −2% on 22 Oct
  Persistent opened a USD 450m (~Rs 4265 cr) QIP at Rs 5550 floor, adding ~54% to net worth with ~5% dilution.

  Persistent Systems opened its QIP on October 21, 2026, fixing the relevant date as October 21 and a floor price of Rs 5,550 per share, with up to 5% discount permitted. The issue size is up to USD 450 million, about Rs 4,264.6 crore. The funds will sit as a large equity war chest, boosting net worth by over 50% with modest dilution, pending disclosure of use of proceeds.

  Full analysisFiling
• 16 Oct 2026Committee Meeting UpdatesHigh impactNegativePrice −1.7% that day
  Persistent approved up to Rs 9,000 cr in debt to fund the Nagarro acquisition, sharply raising leverage and interest costs.

  Persistent's Special Committee on October 16, 2026 approved terms for up to Rs 8,000 crore of non-convertible debentures and up to Rs 1,000 crore of commercial paper via private placement. The debt is part of long-term financing for the acquisition of Nagarro SE, following board and shareholder approvals in September and October. If fully drawn, this will move Persistent from near-zero debt to about Rs 9,000 crore of debt, adding large annual interest costs over the next year.

  Full analysisFiling
• 13 Oct 2026Press ReleaseLow impactPositivePrice +3.5% that day
  Persistent opened its third Hyderabad office to expand AI and BFSI delivery capacity.

  Persistent Systems inaugurated its third Hyderabad facility at Phoenix Equinox in Gachibowli on October 13, 2026. The office will provide secure, dedicated delivery space for banking, financial services and insurance clients working on AI deployment, payments modernization and cloud programs. With over 3,000 staff already in Hyderabad and 28,500 globally, the expansion modestly adds capacity and supports access to BFSI talent, with no major near-term financial impact expected.

  Full analysisFiling

Results dates and other board meetings. Full calendar

Compounded yearly rates over each period.

Listed companies in the same business.

Anand Suresh Deshpande

Chairman of the Board, Founder, Managing Director

Sandeep Kalra

Chief Executive Officer, Executive Director

Vinit Ajit Teredesai

Chief Financial Officer, Additional Executive Director

Shimona Chadha

Chief Marketing Officer

Amit Atre

Company Secretary