Persistent Systems Ltd. saw its stock rise over 4% on April 24, 2025, as the company delivered better-than-expected results for the March quarter of FY24. The Pune-headquartered digital engineering and enterprise modernization company impressed investors and analysts with its robust revenue growth and margin expansion, outperforming its peers.

Q4 FY24 Financial Performance Highlights

Revenue in constant currency terms rose 4.5% quarter-on-quarter, which exceeded street expectations of around 3.7% to 3.8%. This was not only higher than the previous year’s Q4 growth of 3.4%, but also a healthy sequential growth compared to 4.6% in the December quarter.

This beats the performance of several peers like LTIMindtree, which reported a 0.6% decline in revenue in constant currency for the same period. Persistent’s consistent quarterly growth underlines its strong execution and demand traction across sectors.

EBIT Margin Expands to 15.6%

Another positive takeaway from the Q4 results was the 70 basis points improvement in EBIT margin, which rose to 15.6% from 14.9% in the previous quarter. This was also significantly higher than the 14.5% EBIT margin recorded in the same quarter last year.

Such margin expansion in a tough macro environment reflects better cost control, operational efficiency, and high-margin deal executions across key verticals.

Moderation in Deal Wins, But Healthy Pipeline Maintained

Despite a moderation in deal wins compared to the previous quarter, Persistent still reported a strong total contract value (TCV) of $517.1 million for Q4 FY24. This was lower than $594.1 million in Q3 FY24, but higher than the $447.7 million reported in Q4 FY23.

Net new TCV came in at $329 million, compared to $333.6 million in the December quarter and $302 million in the same quarter last fiscal. This moderate dip was largely expected given seasonality, but the year-on-year improvement points to sustained client confidence and a strong order book.

CEO Reaffirms $2 Billion Revenue Target for FY27

Sandeep Kalra, CEO and Executive Director of Persistent Systems, reaffirmed the company’s ambition to hit $2 billion in annual revenue by FY27. He stated that the company is making “sustained progress” towards that goal and is confident about the long-term growth trajectory.

This forward-looking commentary resonated well with investors, as it signals management’s clarity, strategic roadmap, and commitment to scale despite broader IT sector headwinds.

Analyst Sentiment and Stock Performance

Out of the 41 analysts tracking Persistent Systems, 23 have a “Buy” rating, 6 have a “Hold”, and 12 maintain a “Sell” rating. This mixed outlook reflects the divided views on the broader IT sector amid global macro uncertainty, though Persistent’s performance stands out.

Following the earnings announcement, the stock touched an intraday high of ₹5,387.5, up 4.3%, and was trading at ₹5,371.5 around 9:35 am, reflecting a 4.03% gain. This rally comes after a year-to-date decline of 16.5%, suggesting the earnings beat has boosted investor sentiment.

A Look at FY24 Performance

Persistent’s full-year performance also tells a consistent story of growth, margin discipline, and strong client retention. The company is increasingly focusing on large transformational deals, platform-led solutions, and enhancing its cloud and AI capabilities—all of which are aligned with the evolving needs of global enterprises.

Outlook for FY25 and Beyond

With solid execution, diversified client base, and digital transformation tailwinds, Persistent Systems is poised for continued momentum. Management expects to see increased demand from healthcare, BFSI, and high-tech verticals.

The company also hinted at increased hiring and investments in upskilling, especially in areas like generative AI, cloud-native development, and cybersecurity.

With deal wins flowing in, margins expanding, and leadership staying the course, Persistent is well-positioned to recover lost ground on the stock market and deliver on its ambitious FY27 vision.

Conclusion

The latest quarterly results underscore Persistent Systems' ability to navigate headwinds while delivering growth and profitability. With a strong management vision, improving operating metrics, and a bullish long-term target, the company remains a compelling mid-cap IT play.

The stock’s positive reaction post-earnings indicates renewed investor confidence. If Persistent sustains this growth trajectory and continues to win transformational deals, its FY27 revenue goal of $2 billion seems well within reach.

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