Persistent Systems, Tata Elxsi: Q4 results preview for two IT firms
For Persistent Systems, Kotak said investors must focus on the momentum in deal wins and whether current growth trajectory is sustainable given headwinds in healthcare payers and hi-tech verticals.
- Apr 21, 2026,
- Updated Apr 21, 2026 10:02 AM IST
Along with the bigger peer HCL Technologies Ltd, two midcap IT firms namely Persistent Systems Ltd and Tata Elxsi Ltd will declare their March quarter on Tuesday. A few analysts believe Persistent Systems will lead the charge among mid-tier IT companies this earnings season.
What to watch? For Persistent Systems, Kotak Institutional Equities said investors must focus on the momentum in deal wins and whether current growth trajectory is sustainable given headwinds in healthcare payers and hi-tech verticals. Eyes would be on strength of deal pipeline and conversion timelines in light of macro headwinds, outlook of discretionary spending across verticals, medium-term profitability targets and progress on acquisitions, which are critical for path to $5 billion revenues target.
In the case of Tata Elxsi, focus will be on the overall demand outlook in SDS segment and medium-term growth aspirations; commentary on engagements with JLR and recently acquired clients in transportation; and growth and margin aspirations for FY2027E. The outlook of media & communications vertical; pipeline build up and growth outlook in healthcare and the progress on scale-up of adjacencies in each of the three focus verticals will also be the focus areas.
Q4 results preview Elara Securities expects Persistent Systems to report 33 per cent YoY rise in net profit at Rs 526.40 crore on 22.7 per cent YoY rise in sales at Rs 3,978 crore. It expects Tata Elxsi to report 3.7 per cent YoY rise in net profit at Rs 178.70 crore on 8.9 per cent YoY rise in sales at Rs 988.90 crore.
Kotak sees March quarter profit for Tata Exlsi rising 7.4 per cent YoY to Rs 185.10 crore on 10.2 per cent YoY rise in sales at Rs 1,001 crore. Persistent Systems, other the other hand, is seen reporting 33.1 per cent YoY rise in profit at Rs 526.80 crore on 24.9 per cent YoY rise in sales Rs 4,050 crore. For persistent sequential CC revenue growth is seen at 4 per cent, driven by healthy performance in BFSI vertical followed by healthcare. Growth may moderate in hi-tech vertical. Margin may expand 10 basis points QoQ on rupee depreciation and partially offset by investments in business, Kotak said.
For Tata Elxsi, revenue growth may come in at 1.8 per cent CC QoQ, led by media & communications and healthcare and medical devices verticals while transportation segment revenues are likely to be flattish sequentially, analysts said.
Along with the bigger peer HCL Technologies Ltd, two midcap IT firms namely Persistent Systems Ltd and Tata Elxsi Ltd will declare their March quarter on Tuesday. A few analysts believe Persistent Systems will lead the charge among mid-tier IT companies this earnings season.
What to watch? For Persistent Systems, Kotak Institutional Equities said investors must focus on the momentum in deal wins and whether current growth trajectory is sustainable given headwinds in healthcare payers and hi-tech verticals. Eyes would be on strength of deal pipeline and conversion timelines in light of macro headwinds, outlook of discretionary spending across verticals, medium-term profitability targets and progress on acquisitions, which are critical for path to $5 billion revenues target.
In the case of Tata Elxsi, focus will be on the overall demand outlook in SDS segment and medium-term growth aspirations; commentary on engagements with JLR and recently acquired clients in transportation; and growth and margin aspirations for FY2027E. The outlook of media & communications vertical; pipeline build up and growth outlook in healthcare and the progress on scale-up of adjacencies in each of the three focus verticals will also be the focus areas.
Q4 results preview Elara Securities expects Persistent Systems to report 33 per cent YoY rise in net profit at Rs 526.40 crore on 22.7 per cent YoY rise in sales at Rs 3,978 crore. It expects Tata Elxsi to report 3.7 per cent YoY rise in net profit at Rs 178.70 crore on 8.9 per cent YoY rise in sales at Rs 988.90 crore.
Kotak sees March quarter profit for Tata Exlsi rising 7.4 per cent YoY to Rs 185.10 crore on 10.2 per cent YoY rise in sales at Rs 1,001 crore. Persistent Systems, other the other hand, is seen reporting 33.1 per cent YoY rise in profit at Rs 526.80 crore on 24.9 per cent YoY rise in sales Rs 4,050 crore. For persistent sequential CC revenue growth is seen at 4 per cent, driven by healthy performance in BFSI vertical followed by healthcare. Growth may moderate in hi-tech vertical. Margin may expand 10 basis points QoQ on rupee depreciation and partially offset by investments in business, Kotak said.
For Tata Elxsi, revenue growth may come in at 1.8 per cent CC QoQ, led by media & communications and healthcare and medical devices verticals while transportation segment revenues are likely to be flattish sequentially, analysts said.