Persistent Systems (PERSISTENT) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue reached $389.7M, up 3.9% QoQ and 18.8% YoY, marking the 21st consecutive quarter of growth and reflecting strong execution of an AI-led, platform-driven strategy.

• EBIT margin was 15.5%, with EBIT up 2.5% sequentially and 34.8% YoY; PAT margin stood at 12.7%, with PAT up 7.4% sequentially and 38.7% YoY.

• Strong client growth across all revenue buckets, with top 100 customers growing 22.4% YoY.

• Recognized as a leader in digital engineering, talent readiness, and ESG by multiple industry bodies.

• Standalone revenue for the quarter ended June 30, 2025, was ₹32,580.84 million, up from ₹26,913.96 million YoY.

Financial highlights

• Revenue: $389.7M (+18.8% YoY, +3.9% QoQ); INR 33,335.9M (+21.8% YoY); TTM revenue: $1,470.7M (+19.4% YoY).

• EBIT: INR 5,178.1M (+34.8% YoY); EBIT margin 15.5% (+150 bps YoY); PAT: INR 4,249.4M (+38.7% YoY); PAT margin 12.7%.

• EPS: INR 27.4 (Q1 FY26), up 36.5% YoY; Basic and diluted EPS: ₹23.95, up from ₹16.11 YoY.

• Cash and investments: $307.8M as of June 30, 2025; standalone cash and cash equivalents: ₹3,072.50 million.

• Operating cash flow to PAT: 105.3% in Q1 FY26; billed DSO: 56 days.

Outlook and guidance

• Management remains confident in growth trajectory, targeting $2B revenue by FY27 and margin improvement of 200–300 bps.

• Focus on scaling AI capabilities, ecosystem partnerships, and outcome-based models to drive future growth.

• No formal forward-looking revenue guidance provided due to macro uncertainty, but pipeline and order book remain healthy.