Persistent Systems on Track for $2 Billion Revenue by FY27

Introduction

Persistent Systems remains confident in its strategic growth plan, with Chief Executive Officer Sandeep Kalra reiterating the company's goal to achieve $1 billion in revenue by the fiscal year 2027. This ambitious target is part of a longer-term vision to reach $1 billion by FY31. The company's confidence is supported by consistent quarterly growth, a strong deal pipeline, and a strategic pivot towards AI-led, platform-driven services that are helping it win significant market share against larger industry peers.

Ambitious Revenue Goals Confirmed

CEO Sandeep Kalra has clearly outlined the company's financial aspirations, stating, "We have said $1 billion by FY27 and $1 billion by FY31." He confirmed that the company is well on its journey to meet these milestones within the specified timelines. The FY27 target is expected to be achieved on a run-rate basis by the end of the March 2027 quarter. This growth will be primarily organic, supplemented by a small inorganic component through strategic, capability-led acquisitions. The foundation for the subsequent $1 billion target is already being established, reflecting a long-term, structured approach to expansion.

Consistent Financial Performance

Persistent Systems' optimism is grounded in its strong and consistent financial results. The company recently reported its 22nd consecutive quarter of revenue growth. For the second quarter of FY26, ending September 30, 2025, the company delivered a robust performance that surpassed market expectations. This consistency highlights the firm's operational excellence and the sustained demand for its services despite a challenging macroeconomic environment.

The AI-Driven Strategy

A key driver of Persistent's success is its strategic shift from a traditional, human-driven services model to a technology-and-human-driven platform approach. Kalra emphasized this pivot, stating, "We are pivoting from a human driven services company only to a tech and human driven platform." The company is investing heavily in Artificial Intelligence and has developed proprietary platforms, such as SASVA for AI in technology, to deliver outcome-based solutions. This strategy not only enhances service delivery but also improves internal efficiency, allowing the company to deliver more value with fewer resources. This AI-first approach is helping Persistent win larger, more complex deals and differentiate itself in a competitive market.

Winning Market Share from Larger Peers

With a compounded annual growth rate (CAGR) of approximately 25% over the last four years, Persistent Systems is significantly outperforming the industry average. The company has become a formidable challenger to larger IT service providers. As clients consolidate their vendors, Persistent is increasingly being invited to bigger bids and is winning a substantial share of business. Kalra noted, "We are a significant challenger to our bigger peers in our industry... we are winning an unfair share of wallet from our customers, and that is what is leading to the growth."

Strong Deal Wins and Sectoral Focus

The company's order book remains healthy, reflecting strong client demand. For the quarter ending September 30, 2025, order bookings stood at $109.2 million in Total Contract Value (TCV) and $147.9 million in Annual Contract Value (ACV). Growth is well-distributed across its key verticals: Software, Hi-Tech & Emerging Industries; Banking, Financial Services & Insurance (BFSI); and Healthcare & Life Sciences. The company has secured significant wins, including developing AI infrastructure platforms for a global provider and transforming IT processes for a leading financial services company.

Operational Efficiency and Margin Outlook

Persistent is focused on maintaining strong profitability alongside its rapid growth. The company aims to keep its EBIT margin in the 16-17% range for the near future. This is achieved through operational discipline and the use of AI to enhance productivity. Despite absorbing the full impact of wage hikes, the company has sustained its margins by improving utilization and managing its headcount effectively. This focus on efficiency ensures that investments can be continually channeled back into the business to fuel further innovation and growth.

Conclusion

Persistent Systems is firmly on its growth trajectory, guided by a clear vision and a robust, AI-centric strategy. CEO Sandeep Kalra's confidence in achieving the $1 billion revenue target by FY27 is backed by consistent financial performance, strong deal momentum, and an increasing ability to compete and win against industry giants. As the company continues to leverage its technological capabilities and platform-driven approach, it is well-positioned to deliver sustained value to its clients and shareholders in the years ahead.