Persistent Systems Outperforms Peers with 28% CAGR, Eyes AI Market Share

Persistent Systems has delivered a robust 28% compound annual growth rate over the past four years, surpassing several competitors even before the recent AI boom. The company's strategic focus on its top 100 clients—accounting for over 82% of revenue—positions it to capture significant AI-related opportunities through its AI-powered digital engineering platform, SASVA.

Notable wins against Tier-1 competitors in Q2FY26, including a major financial services consolidation deal, underscore its competitive edge. Persistent plans to implement contractual clauses for price increases on experienced resources, aiming to bolster margins. Analysts project gradual margin expansion to 16.4% by FY27E, though macroeconomic headwinds and pricing pressures may cap gains.

Revenue, EBIT, and PAT are expected to grow at CAGRs of 18.2%, 24.2%, and 23.9%, respectively, from FY25 to FY28E. The firm maintains an 'Add' rating with a target price of ₹6,050.