How has been the historical performance of Persistent Syste?

Revenue and Profit Growth

Over the seven-year period, Persistent Syste’s net sales have surged impressively from ₹3,365.94 crores in March 2019 to ₹11,938.72 crores in March 2025. This represents a compounded growth trajectory, with particularly strong jumps observed between fiscal years 2021 and 2025. The company’s operating profit before depreciation, interest, and tax (PBDIT) excluding other income also followed a positive trend, rising from ₹556.24 crores in 2019 to ₹2,058.20 crores in 2025. Including other income, operating profit reached ₹2,196.35 crores in the latest fiscal year.

Profit before tax increased from ₹486.34 crores in 2019 to ₹1,822.31 crores in 2025, while profit after tax (PAT) grew from ₹351.68 crores to ₹1,400.16 crores over the same period. The PAT margin has remained relatively stable, fluctuating modestly around 10-12%, with the latest year’s margin at 11.73%. Earnings per share (EPS) also reflected this upward momentum, rising from ₹44.45 in 2019 to ₹89.83 in 2025, indicating enhanced shareholder returns.

Cost Structure and Margins

Persistent Syste’s cost management has evolved alongside its growth. Employee costs, the largest expense category, rose from ₹1,924.95 crores in 2019 to ₹6,873.72 crores in 2025, reflecting expansion in workforce and operations. Manufacturing expenses and other operating costs also increased but at a controlled pace, supporting margin stability. Operating profit margins excluding other income have hovered around 16-18%, with a slight dip in some years but a solid 17.24% in the latest fiscal year.

Balance Sheet Strength and Asset Growth

The company’s total assets expanded from ₹2,996.16 crores in 2020 to ₹8,534.18 crores in 2025, underscoring significant capital investment and business scaling. Net block of fixed assets increased substantially, indicating ongoing capacity enhancement. Shareholders’ funds grew from ₹2,385.76 crores in 2020 to ₹6,319.06 crores in 2025, reflecting retained earnings and capital accumulation. Notably, Persistent Syste has reduced its long-term borrowings to zero by 2025, signalling a strong deleveraging trend and improved financial stability.

Cash Flow and Liquidity

Cash flow from operating activities has shown consistent improvement, rising from ₹351 crores in 2020 to ₹1,156 crores in 2025. Despite significant investing outflows related to capital expenditure, the company has maintained positive net cash inflows in recent years. Closing cash and cash equivalents increased from ₹190 crores in 2020 to ₹674 crores in 2025, supporting liquidity and operational flexibility.

Summary and Outlook

Persistent Syste’s historical performance reflects a well-executed growth strategy, characterised by strong revenue expansion, improving profitability, and prudent financial management. The company’s ability to maintain stable margins amid rising costs and to reduce debt levels enhances its credit profile and investor appeal. With a rising book value per share and consistent cash flow generation, Persistent Syste is positioned favourably for continued growth in the competitive IT software sector.

Investors seeking exposure to a midcap IT software company with a track record of steady financial improvement may find Persistent Syste’s historical performance encouraging. The company’s disciplined approach to cost control, asset management, and capital allocation bodes well for sustainable value creation in the years ahead.

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