Persistent Systems Q3 FY26 Earnings Results: Revenue Rises 17%, Interim Dividend of ₹22 Declared

Persistent Systems reported a solid performance for the quarter ended December 31, 2025. The company’s consolidated revenue rose to $422.5 million, marking a 17.3% year-on-year growth and 4% quarter-on-quarter growth. Revenue growth in constant currency also stood at 17.3% YoY, highlighting steady demand across markets.

In rupee terms, revenue increased to ₹37,782.1 million, up 23.4% YoY and 5.5% QoQ, supported by strong execution and large client engagements.

Profitability and Margins

The company reported an EBIT margin of 16.7%, excluding the one-time impact of new labour codes. Including this impact, EBIT stood at ₹5,427.5 million, while profit after tax (PAT) came in at ₹4,394.5 million, up 17.8% YoY despite a sequential dip.

Management clarified that the new labour codes had a one-time impact of around 2.3% on EBIT and 1.8% on PAT during the quarter.

Interim Dividend Announcement

Reflecting confidence in business performance, the Board of Directors declared an interim dividend of ₹22 per share (face value ₹5) for FY26, rewarding shareholders amid sustained growth.

Management Commentary

CEO and Executive Director Sandeep Kalra said the company delivered its 23rd consecutive quarter of revenue growth, driven by rising demand for AI, cloud, data, and digital engineering services. He highlighted Persistent’s growing role in strategic client programs and its recognition as a Microsoft Frontier Firm and one of India’s Most Valuable Brands.

Persistent Order Book and Client Wins

For Q3 FY26, Persistent recorded a total contract value (TCV) of $674.5 million and annual contract value (ACV) of $501.9 million. Key wins came across software, BFSI, and healthcare segments, including AI-led digital commerce, cloud migration, cybersecurity, data transformation, and IT modernization projects.

About Persistent Systems

Persistent Systems is a global digital engineering and enterprise modernisation company with over 26,500 employees across 18 countries. The company is part of major Indian and global indices and focuses on AI-led, platform-driven solutions across industries.

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Persistent Systems Share Price Movement

Persistent Systems share price (NSE: PERSISTENT) ended Tuesday’s session at ₹6,306, down ₹132 or 2.05% on the NSE on January 20. The stock opened higher at ₹6,419.50, touched an intraday high of ₹6,491, but slipped to a low of ₹6,300 before closing lower. Persistent Systems has a 52-week high of ₹6,599 and a 52-week low of ₹4,148.95. The stock offers a dividend yield of 0.56%, with a quarterly dividend amount of ₹8.83.

Conclusion

Persistent Systems delivered a strong Q3 FY26 performance with healthy revenue growth, stable margins, and robust deal wins. The ₹22 interim dividend underlines management’s confidence as demand continues to shift toward large, complex digital and AI-led engagements.

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