Persistent Systems Limited

PERSISTENT.NS

Information Technology Services · Technology

Price

₹5667.50

-6.50 (-0.11%)

Market Cap

₹885.44B

Exchange

National Stock Exchange of India

Winston Score

Winston is happy

A high-quality business with solid fundamentals.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Good

Growth

Exceptional

Cash Flow

Good

Stability

Exceptional

Valuation

Good

Dividends

Weak

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Share count rising — dilution

+3.2% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 152.8M (2022) → 157.8M (2026)

Winston Score History

The full picture

Persistent Systems is an Indian technology services company that helps other businesses build and improve software. Its main customers are companies in banking, financial services, healthcare, and technology — many of them based in the United States and Europe. The company specializes in areas like cloud computing, artificial intelligence, and digital product engineering, meaning it helps clients modernize old software or build entirely new digital tools.

Persistent earns money by charging clients for software development and IT services, typically through long-term contracts or project-based work. It is headquartered in Pune, India, and generates the large majority of its revenue from North America, making it heavily dependent on that market. The company has built a strong position by focusing on engineering-heavy work rather than basic IT outsourcing, which tends to attract higher-value contracts. Its key growth driver is rising demand for AI-powered software development, though currency fluctuations and competition from larger Indian IT firms like Infosys and Wipro remain ongoing risks.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+25.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+33.2% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

₹0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

34.5%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

₹29.2B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Persistent Systems Limited grew revenue 25% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

30.7%

Modest — 30.7% gross margin

Profit after running costs

Operating Margin

13.5%

Healthy — 13.5% operating margin

Return on the money invested

ROCE

28.7%

Exceptional — 28.7% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales growth

Sales YoY

+25.4%

Fast-growing sales (+25.4% YoY)

Profit growth

EPS YoY

+25.0%

Earnings growing fast (+25.0% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

76%

Modest — 76% of profit becomes cash

Spare cash per sale

FCF Margin

7.6%

Modest free cash flow (7.6%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.02

Conservative — low debt load (0.02)

Covers its interest

Interest Cover

29.06x

Comfortably covers interest (29.1x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

46.1x

Expensive — P/E 46.1

P/E over 35. The market is pricing in heavy, sustained growth.

Cheaper or dearer next year

P/E vs Forward

+14.9

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (46.1 → 31.2)

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Dividends

Dividend

Dividend Yield

0.73%

Small dividend — 0.73% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record

Dividend Growth

-18.5%

Dividend cut (-18.5% YoY) — warning sign

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