Macquarie has reiterated its ‘Outperform’ rating on Persistent Systems with a target price of ₹7,330, citing strong revenue momentum and healthy margins.
The brokerage said Persistent delivered 18.1% organic revenue growth in FY25 (in USD terms), outperforming most peers. Macquarie sees the company’s ambitious $5 billion revenue target by FY31 as realistic, backed by broad-based growth drivers across verticals and geographies.
It has also factored in a 200 basis point improvement in margins by FY27, slightly below the company’s own guidance of 200–300 bps, which Macquarie sees as achievable. With a Return on Capital Employed (RoCE) of 40% in FY25 and further room to expand EBIT margins, Macquarie believes that Persistent’s valuation premium over peers is justified and sustainable.
