India · Delayed Price · Currency is INR Persistent Systems Earnings Call Transcripts
Fiscal Year 2026
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A €1.27B all-cash acquisition will combine two complementary digital engineering firms, creating a $2.9B+ global AI-led powerhouse with 46,000+ employees across 40+ countries. The deal is fully financed, expected to be EPS accretive from year one, and aims for significant growth, margin improvement, and global expansion, pending regulatory approvals.
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Q4 FY26 revenue grew 16.2% YoY to $436M, with strong BFSI and AI-driven growth. FY26 revenue reached $1.65B, EBIT margin improved to 15.6%, and PAT rose 33.2% YoY. Confident in $2B FY27 run-rate, with continued AI investments and robust client expansion.
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Q3 FY2026 saw 17.3% YoY revenue growth to $422.5M, with strong client expansion and robust order book. Margins were impacted by new labor codes, but AI-driven platforms and strategic wins across verticals supported growth. Interim dividend increased to INR 22 per share.
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Q2 FY26 saw 17.6% YoY revenue growth and 230 bps EBIT margin expansion, with broad-based gains across geographies and verticals. AI initiatives and strong deal wins underpin confidence in reaching the $2B FY27 target, despite macro uncertainties.
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Q1 FY26 saw revenue grow 18.8% YoY to $389.7M, with EBIT margin at 15.5% and PAT up 38.7% YoY. BFSI led segment growth, while healthcare faced a temporary decline due to planned transitions. Management remains confident in achieving $2B revenue by FY27.
Fiscal Year 2025
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Q4 FY25 saw 20.7% YoY revenue growth and margin expansion, with strong client scaling and robust performance in healthcare and BFSI. Despite macro uncertainties, the company remains confident in its $2B FY27 revenue aspiration, supported by AI investments and strategic acquisitions.
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AI is entering a transformative phase, with agentic AI poised to revolutionize industries through autonomous, end-to-end processes. Enterprises will shift toward smaller, fine-tuned models for cost-effective, domain-specific solutions, while new engineering and verification skills become essential.
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Q3 FY25 saw 19.9% year-on-year revenue growth to $360.2M, with EBIT margin at 14.9% and PAT up 30.4%. Healthcare and BFSI led segment growth, and the company remains confident in its $2B FY27 and $5B FY31 revenue aspirations, driven by AI and platformization.
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Q2 FY25 saw 18.4% year-over-year revenue growth, 14% EBIT margin, and strong order bookings. HLS and BFSI led vertical growth, while AI-driven platforms and strategic acquisitions enhanced offerings. Management remains confident in continued growth and margin expansion, targeting $2B revenue by FY27.
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Q1 FY 2025 saw 16% YoY revenue growth and 14% EBIT margin, led by healthcare and BFSI. Strategic AI investments, a new CFO, and cost optimization initiatives position the company for continued growth and margin improvement.
Fiscal Year 2024
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The AGM highlighted robust financial growth, strategic investments in AI and cloud, and strong governance. Key resolutions included director appointments, dividend approval, and ESOP amendments. The company emphasized resilience amid market uncertainties and celebrated impactful CSR initiatives.