Persistent Systems shares jump 7% on strong Q2 earnings; brokers raise target prices

 Brokers remained upbeat, with Nuvama, Motilal Oswal, HDFC Securities, and JM Financial reiterating buy ratings and raising target prices, citing broad-based growth, AI-led platform strategy, and strong European and BFSI vertical performance.

Persistent Systems’ shares were in the spotlight today after the company delivered a strong set of Q2 numbers amid global headwinds, lifting investor sentiment and triggering a fresh round of bullish calls from brokerages.

On Tuesday, the company reported a 45 per cent jump in consolidated net profit for the quarter ended September 2025 to ₹4,71.5 crore from ₹324.9 crore in the corresponding quarter last year.

The revenue from operations grew 23.5 per cent to ₹3,580.7 crore in the quarter under review as against ₹2,897.2 crore in the year-ago period.

In addition, the board approved the transfer of 100 per cent shareholding of Aepona Group Ltd, Ireland, from Persistent Systems Inc., USA, to Persistent Systems Ltd.

Brokerages lift target prices

Brokers have largely been optimistic about the stock. CLSA reiterated its high conviction outperform rating and increased the target price to ₹8,270.

Nuvama reiterated a buy rating and raised the target price to ₹7,000. It stated that the company’s strong revenue growth, despite macro headwinds and tariff-led uncertainty, combined with continuous margin expansion, resulted in industry-leading earnings growth, which should, in turn, lead to consistent outperformance by the stock.

Motilal Oswal has reiterated a buy rating at a target price of 6,550, projecting a 19 per cent USD revenue CAGR over FY25-27. This, combined with margin expansion, could result in a 26 per cent EPS CAGR.

According to HDFC Securities, the growth was broad-based, with standout performance in the BFSI vertical and the European market. The brokerage noted that the company is steadily advancing its AI-led, platform-centric strategy, having filed 20 new patents for its SASVA platform and secured multi-year deals across key verticals.

While HDFC Securities cautioned that recent wage hikes may weigh on near-term margins, it said management remains confident of offsetting the impact through operational efficiencies. The brokerage assigned an add rating at ₹6,200 target price.

JM Financial has increased the target price to ₹6,140 from ₹5,870, retaining a buy rating.

HSBC maintained a hold rating but raised its target price to ₹6,000, while Nomura maintained a neutral stance at a target price of ₹5,200.

Markets responded swiftly, pushing the stock up over 7 per cent to an intraday high of ₹5,728.90 on the BSE. The stock traded at ₹5,692.70 at 10.43 am, 6.91 per cent higher, after opening at ₹5,545 against the previous close of ₹5,324.25. The rally underscores renewed confidence in Persistent’s execution and outlook.

Published on October 15, 2025