Persistent Systems (PERSISTENT) Q3 25/26 earnings summary

Executive summary

• Achieved Q3 FY26 revenue of $422.5 million, up 4% QoQ and 17.3% YoY, marking the 23rd consecutive quarter of growth.

• EBIT margin at 14.4%, impacted by a one-time 2.3% reduction from new Indian labor codes; PAT margin at 11.6%.

• Interim dividend of INR 22 per share declared for FY26, up from 20 in FY25, reflecting a consistent payout policy.

• Board approved issuance of 1,100,000 equity shares to the ESOP Trust and completed internal restructuring for operational efficiency.

• Recognized for AI innovation and brand strength, including Microsoft Frontier Firm and India's Most Valuable Brands.

Financial highlights

• Q3 FY26 revenue: INR 37,782.1 million, up 23.4% YoY; net profit: INR 4,394.5 million, up 17.8% YoY.

• EBIT for Q3: INR 5,427.5 million, up 19.1% YoY; PAT margin at 11.6%.

• EPS at INR 28.20, up 16% YoY; diluted EPS at INR 27.94.

• Operating cash flow to PAT at 91%–105.3%, with DSO increases due to holiday season collections.

• Total cash and investments: INR 29,046.5 million as of Dec 31, 2025.

Outlook and guidance

• Confident in achieving $2 billion revenue by March 2027 and laying foundation for $5 billion by FY2031.

• Management continues to monitor regulatory changes, especially regarding Labour Codes.

• Ongoing focus on operational efficiency, technology, and talent investment.