Persistent Systems (PERSISTENT) Q3 25/26 earnings summary

Executive summary

• Achieved revenue of $422.5 million (₹37,782.05 million) in Q3 FY2026, up 4% QoQ and 17.3% YoY, marking the 23rd consecutive quarter of growth.

• EBIT margin was 14.4%, impacted by a one-time 2.3% reduction due to new Indian labor codes; PAT margin at 11.6% with a 1.8% impact from labor code changes.

• Interim dividend of INR 22 per share declared, up from INR 20 in the previous year.

• Significant client expansion and strategic wins across BFSI, healthcare, manufacturing, and hi-tech verticals.

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

Financial highlights

• Revenue: $422.5M (+17.3% YoY, +4% QoQ); INR 37,782.1M (+23.4% YoY); TTM revenue: $1,593.6M (+18.5% YoY).

• EBIT: INR 5,427.5M (14.4% margin, +19.1% YoY); PAT: INR 4,394.5M (11.6% margin, +17.8% YoY).

• EPS: INR 28.20 basic (+16% YoY); diluted EPS INR 27.94; cash and investments at INR 29,046.5M.

• Operating cash flow to PAT at 91% (down from 114.3% QoQ); DSO at 57 days billed, 24 days unbilled.

• Exceptional item of INR 890.25M recognized due to statutory impact of new Labour Codes.

Outlook and guidance

• Confident in achieving $2B revenue by March 2027 and laying foundation for $5B by March 2031.

• Management continues to monitor regulatory changes, especially regarding Labour Codes, and will adjust accounting as needed.

• No forward-looking margin guidance provided; ongoing investment in AI and technology platforms expected to support growth.

• Focus on operational efficiency and entity rationalization within the group.