Persistent Systems: Differentiated from the lot. Sector cross-roads limit upside. Initiate with U/P

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Persistent Systems: Differentiated from the lot. Sector cross-roads limit upside. Initiate with U/P

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Persistent Systems

Differentiated from the lot. Sector cross-

roads limit upside. Initiate with U/P

Initiating Coverage: UNDERPERFORM | PO: 4,875 INR | Price: 4,911 INR

Tech partnerships to drive sector-leading growth 25 June 2026

We initiate on Persistent Systems (PSYS) with an Underperform rating and Rs4,875 PO. Equity

We see PSYS as a mid-sized IT services firm focused on providing AI-led digital

engineering, data modernization, and transformation services to large enterprises. Its Kunal Tayal >> Research Analyst

differentiated tech capabilities, acquired by having been a product development partner BofAS India

to several leading US technology companies, has helped it deliver sector-leading organic +91kunal.tayal@bofa.com22 6632 8663

revenue CAGR of 17% over the last 3 years. These have been incrementally used to gain Jatin Kalra, CFA >>

market share with large enterprise customers, which in our view, also provides the path Research Analyst

BofAS India

for continuing with sector-leading revenue growth of 14% CAGR for the next 3 years. +91 22 6632 8390

The IP approach is also encouraging jatin.kalra3@bofa.com

In its quest of leapfrogging to revenue run-rate of US$5bn, we find company’s IP-led

approach – through SASVA (AI tool for product development lifecycle) and iAURA (tool for

Stock Datadata management) as encouraging. Such an approach provides the best path forward on

balancing growth with profitability amidst intensifying AI-led competition, in our view. That Price 4,911 INR

said, we view industry adoption of AI IP tools at a nascent stage and could take a while to Price Objective 4,875 INR