Persistent system share price jumped nearly 12% to touch all-time high levels following strong Q2 results. In the quarter that ended September, the company’s consolidated net profit rose by 23.44% to reach ₹324.9 crore, compared to ₹263.2 crore in the same period last year. The revenue from operations for the quarter increased by 20.13% to ₹2,897.1 crore from ₹2,411.6 crore in the September FY24 quarter.
Persistent System’s share price today opened at ₹5,259.55 apiece; the stock touched an intraday high of ₹5,764 and an intraday low of ₹5,200. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One. Persistent System’s share price is in strong momentum, gaining more than 10%. With this, it has re-entered uncharted territory; they maintain a positive bias and expect this upmove to continue. Traders should have a buy on dip approach with 5,600 as key support and 6,100 as resistance.
Further, Ruchit Jain, Lead Research Analyst at 5paisa, highlighted that the move is also supported by good volumes, and hence the momentum is likely to continue. Investors with long positions should continue to ride this trend.
Persistent Systems recorded a successful quarter on all fronts, according to the brokerage’s report: 1) revenue, 2) transaction TCV, and 3) margins. Given the one-time gains in FY25, which were driven by the following levers: 1) a slower rate of sales and marketing investments, 2) pricing and right shoring, and 3) a larger revenue share from higher-margin platform-based services, the business can allay investor concerns about its capacity to expand margins in FY26.
Earnings Before Interest And Taxes (EBIT)
The company’s EBIT rose by 5.8% quarter-over-quarter, amounting to ₹406.2 crore. The EBIT margin remained steady at 14%, consistent with the previous quarter. This stability indicates effective cost management and operational efficiency amidst rising revenues.
Dollar Revenue Growth
In dollar terms, Persistent Systems achieved revenue growth of 5.3% quarter-over-quarter, totaling $345.5 million. The constant currency revenue growth for Q2 stood at 5.1%, showcasing the company’s ability to maintain momentum despite global economic fluctuations.
Strategic Initiatives
CEO Sandeep Kalra emphasized that the company continues to enhance its AI-driven, platform-centric services. The recent acquisition of Starfish Associates is aimed at strengthening their AI-powered contact center modernization capabilities, while the addition of Arrka broadens their digital governance offerings, including data privacy and cybersecurity solutions.
Total Contract Value (TCV)
Persistent Systems reported a Total Contract Value (TCV) of $529 million for the quarter, with an Annual Contract Value (ACV) of $348.3 million. These figures reflect strong demand for Persistent’s services across various sectors, including software and cybersecurity.
