BENGALURU: In a bold strategic move, Persistent Systems has unveiled its ambitious vision to transform into a $5 billion enterprise by the financial year 2030-31. This significant revenue target was formally announced during the company's annual strategic offsite, known as The Huddle, which took place in Pune and gathered approximately 650 senior leaders from across the organization.
Strategic Vision and Growth Trajectory
The Huddle served as both a forward-looking planning session and a critical checkpoint for evaluating Persistent Systems' long-term growth trajectory. During this intensive gathering, executives meticulously charted the company's priorities and focus areas for FY2027 while simultaneously assessing progress toward the overarching $5 billion revenue aspiration for FY2031.
Sandeep Kalra, CEO of Persistent Systems, emphasized the significance of this strategic planning exercise. "Over the course of this intensive offsite, we not only charted our priorities and focus areas for FY2027 but also assessed our progress towards our long-term aspiration of reaching $5 billion in annual revenue by FY2031," Kalra stated, highlighting the dual focus on immediate and long-term objectives.
AI-Led Execution as Core Strategy
Central to Persistent Systems' growth strategy is a sharpened focus on artificial intelligence-led execution. The company plans to embed AI capabilities across all its operations and service offerings, moving beyond theoretical narratives to deliver tangible, demonstrable outcomes for clients.
"AI will be embedded across everything we do," Kalra declared, noting that customers increasingly demand proof rather than mere promises. "They want demos, proof of tangible outcomes. From a market perspective, our most compelling metric is our revenue growth for 23 consecutive quarters."
The company has observed that AI-led programs are stabilizing within shorter timeframes, with deal cycles contracting and contracts increasingly shifting toward fixed-bid modernization engagements that demonstrate clear value propositions.
Strategic Acquisition Framework
Persistent Systems is pursuing a dual-track acquisition strategy to accelerate its growth ambitions. The company plans to continue with small tuck-in acquisitions that enhance domain depth, particularly in the lucrative US market, while simultaneously evaluating the possibility of larger, scaled acquisitions in Europe to strengthen its regional footprint.
"Our aspirations have grown, our market capitalization supports it, and we have the ambition to do something larger if it makes strategic sense," Kalra explained regarding potential European acquisitions. He emphasized that the company's disciplined approach to acquisitions reflects strategic caution rather than lack of intent, with decisions based on careful assessment of balance sheet risk, integration risk, and strategic fit including capabilities, customer base, and leadership.
Financial Performance and Medium-Term Targets
Persistent Systems has demonstrated solid financial performance that supports its ambitious growth targets. In the December quarter, the company reported revenue of $422 million, representing 4% growth, with constant-currency growth standing at 4.1% sequentially and an impressive 17.3% year-on-year.
The company's EBIT margin expanded by 40 basis points sequentially to reach 16.7%, indicating improving operational efficiency. For the medium term, Persistent Systems remains firmly on track to achieve $2 billion in revenue by FY27, which implies an 18% constant-currency compound annual growth rate over the FY25-27 period.
This financial foundation, combined with the company's consecutive quarters of revenue growth, provides the platform for pursuing the more ambitious $5 billion target by FY2031 through focused execution of its AI-led strategy and selective acquisition approach.
