This AI stock, which deals in software engineering and services for a strategy to help implement in companies and improve their businesses, is in focus after it plans to reach $5 billion revenue by FY31.
Price Action
With a market capitalization of Rs. 81,384 Crores, the shares of Persistent Systems Limited were trading at Rs. 5,230.60 which is down by 1.56 percent in the day’s trade. The stock has delivered a 31 percent return in the past year and thus it outperformed the Nifty Index.
Future Plans
The company aims to achieve $2 billion in annual revenue by FY27 and $5 billion by FY31. Persistent to focus on expanding its top 100 customers, to improve AI-driven platform services, and leveraging partnerships with hyperscalers like Microsoft, Google, and AWS.
It plans to increase its presence in Europe from 8 to 9 percent to 12 to 15 percent. Key acquisitions, such as Arrka and Starfish, will strengthen AI governance and contact center modernization.
The company is also investing in AI-led platforms like SASVA™, iAURA, and GenAI Hub which can drive automation and efficiency.
Persistent aims to improve profitability by 200-300 basis points over the medium term. It will also optimize Selling, General & Administration (SG&A) expenses and explore nonlinear revenue streams while maintaining their strong cash flow management.
Business Mix
The company earns 31.7 percent from BFSI, followed by 27.8 percent from Healthcare & Life Sciences and the remaining 40.5 percent from Software, Hi-Tech & Emerging Industries as of December 2024.
Geographically, they earn 80.5 percent from North America, followed by 9.4 percent from India, 8.2 percent from Europe and the remaining 1.9 percent from Rest of the World for Q3FY25.
About the Company
Persistent Systems is a multinational technology services company which is headquartered in Pune. It was established in 1990 and specializes in digital transformation, cloud computing, and software product engineering.
The company partners with clients across various industries, including financial services, healthcare, and telecommunications, providing services such as digital strategy, intelligent automation, and enterprise IT security. The total contract value was $594.1 million in Q3FY25
Financials
Its Revenue from operations grew by 22.57 percent year on year from Rs. 2,498 Crores in Q3FY24 to Rs. 3,062 Crores in Q3FY25. The Net profits were Rs. 286 crore in Q3FY24, increased by 30.41 percent from Rs. 373 crore in Q3FY25.
Written by Santhosh S
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