Persistent Systems Q3 earnings: Nuvama justifies high stock valuation, says this
Persistent Systems shares slipped 1.44% to Rs 6,343 in the previous session. Market cap of the firm stood at Rs 1 lakh crore.
- Jan 21, 2026,
- Updated Jan 21, 2026 9:07 AM IST
Shares of Persistent Systems are in focus today after the firm announced its Q3 earnings. The IT major delivered strong results beating estimates, said brokerage Nuvama. Persistent Systems shares slipped 1.44% to Rs 6,343 in the previous session. Market cap of the firm stood at Rs 1 lakh crore.
Brokerage Nuvama said the stock was currently trading at 37x FY28 PE, which might appear expensive, but it finds it justified given a 25% earnings CAGR over FY25–27E. The brokerage retained its 'BUY' call on the IT stock and raised its price target to Rs 7,700 from Rs 7,000 earlier.
The brokerage said the IT firm delivered a solid performance with margin expansion aided by AI-led platform sales.
"We continue to view Persistent as leading the growth as well as the AI-led transformation opportunity in the industry. We are upgrading FY26E/27E EPS by 5.0%/1.5% on slightly higher margin expectations. We roll forward valuation to 45x FY28E PE," said Nuvama.
The IT firm services firm reported a 17.8 per cent rise in consolidated net profit to Rs 439.4 crore for the third quarter ended December 2025 compared to Rs 373 crore in the year-ago period.
Revenue from operations for the reporting quarter stood at Rs 3,778.2 crore, registering a robust growth of 23.4 per cent year-on-year (YoY) from Rs 3,062.3 crore in Q3 FY25.
The Board of Directors also declared an interim dividend of Rs 22 per equity share on the face value of Rs 5 each for the financial year 2025-26.
Shares of Persistent Systems are in focus today after the firm announced its Q3 earnings. The IT major delivered strong results beating estimates, said brokerage Nuvama. Persistent Systems shares slipped 1.44% to Rs 6,343 in the previous session. Market cap of the firm stood at Rs 1 lakh crore.
Brokerage Nuvama said the stock was currently trading at 37x FY28 PE, which might appear expensive, but it finds it justified given a 25% earnings CAGR over FY25–27E. The brokerage retained its 'BUY' call on the IT stock and raised its price target to Rs 7,700 from Rs 7,000 earlier.
The brokerage said the IT firm delivered a solid performance with margin expansion aided by AI-led platform sales.
"We continue to view Persistent as leading the growth as well as the AI-led transformation opportunity in the industry. We are upgrading FY26E/27E EPS by 5.0%/1.5% on slightly higher margin expectations. We roll forward valuation to 45x FY28E PE," said Nuvama.
The IT firm services firm reported a 17.8 per cent rise in consolidated net profit to Rs 439.4 crore for the third quarter ended December 2025 compared to Rs 373 crore in the year-ago period.
Revenue from operations for the reporting quarter stood at Rs 3,778.2 crore, registering a robust growth of 23.4 per cent year-on-year (YoY) from Rs 3,062.3 crore in Q3 FY25.
The Board of Directors also declared an interim dividend of Rs 22 per equity share on the face value of Rs 5 each for the financial year 2025-26.