Persistent Systems (PSYS IN) – Q4FY26 Result Update – Resilient growth & outlook amid macro uncertainty – BUY
Published on 22 Apr 2026
The revenue performance (+3.4% QoQ CC) was below our estimates (+4.3% QoQ CC), attributed to passing productivity benefits to its marquee accounts. Barring this impact, the execution remained strong in terms of winning new business ACV, grew 37.7% YoY in Q4 and 22.7% YoY in FY26. Despite the escalating geo-political tension, management expects growth momentum to continue within all three verticals. The deployment of products and solutions benefits in terms of optimizing resources and achieving faster time-to-market. Management maintained its aspiration to achieve annualized revenue run-rate of US$ 2 bn and US$ 5 bn by FY27E and FY30E, respectively. However, we are factoring-in the quarterly miss and slightly turning conservative, while considering the AI-led productivity pass back and geo-political factors. We are trimming our CC revenue estimates to 16.5%/17.9% (from 17.9% and 18.9% earlier). We are keeping our margin estimates largely unchanged. We assign 35x to FY28E EPS to arrive at a TP of INR 6,400. Retain BUY
