Persistent revenue grows as AI, cloud deals accelerate

Persistent Systems has reported revenue of USD $422.5 million for the third quarter of its 2025-26 financial year, posting 17.3% year-on-year growth and 4.0% quarter-on-quarter growth.

The Indian IT services company said it recorded constant currency growth of 4.1% quarter-on-quarter and 17.3% year-on-year. Revenue for the quarter totalled INR 37,782.1 million, up 5.5% quarter-on-quarter and 23.4% year-on-year.

Persistent reported earnings before interest and tax of INR 6,317.8 million, excluding a one-time impact linked to New Labour Codes. That figure equated to an EBIT margin of 16.7%. Persistent said EBIT growth stood at 8.2% quarter-on-quarter and 38.6% year-on-year on that basis.

The company also disclosed results that include the one-time impact. Under that view, EBIT came in at INR 5,427.5 million and the EBIT margin stood at 14.4%. Persistent said the one-time impact amounted to about 2.3% on EBIT and about 1.8% on profit after tax in the quarter.

Profit before tax was INR 5,649.9 million and profit after tax was INR 4,394.5 million on the reported basis. Persistent said profit before tax fell 8.4% quarter-on-quarter and rose 17.2% year-on-year. It reported profit after tax down 6.8% quarter-on-quarter and up 17.8% year-on-year.

The Board of Directors declared an interim dividend of INR 22 per share on a face value of INR 5 each for the 2025-26 financial year.

"We delivered sustained performance, achieving our 23rd sequential quarter of revenue growth with 4.0% quarter-on-quarter and 17.3% year-on-year growth. This was accompanied by an EBIT margin of 16.7%, excluding a one-time impact of ~2.3% arising from the New Labour Codes. In line with this performance, we are declaring an interim dividend of ₹22 per share. Our performance reflects a deeper role in strategic client programs and sustained demand for data, cloud, and digital engineering across our core industries. This momentum is reinforced by our inclusion among India's Most Valuable Brands by Kantar BrandZ. We are also applying Agentic AI within our own operations, as a 'customer zero' to improve productivity and speed adoption at scale, an approach further validated by our recognition as a Microsoft Frontier Firm. As we move ahead, our priority remains sustaining growth through consistent execution as demand continues to shift toward larger, more complex engagements.", said Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent.

Deal flow

Persistent said order booking for the quarter totalled USD $674.5 million in total contract value and USD $501.9 million in annual contract value.

In software, hi-tech and emerging industries, Persistent cited work with SASVA on an AI-led digital commerce product and a partnership to migrate end customers to cloud-native ERP for a manufacturing and supply chain solutions company. It also cited work for a global edtech company. That work involved renewals and AI-driven case management. The company also described a data-driven research platform for a semiconductor materials and process control company.

In banking, financial services and insurance, Persistent said it re-architected payroll and human capital management platforms using SASVA and iAURA for a fintech and insurance company. Persistent also described work for a French multinational bank. That engagement covered a global data factory and iAURA-led data operations. It also cited cybersecurity and compliance work for a tier-1 US bank. That work covered data visibility, identity controls and automated compliance monitoring.

In healthcare and life sciences, Persistent pointed to automation and cloud-native transformation work across applications, data, infrastructure and security for a US pathology and laboratory sciences organisation. It also described building IT infrastructure and 24/7 multilingual support for a vital organ therapy company. Persistent said it used automation, predictive analytics and self-healing systems in that work. Persistent also cited unifying CRM and data platforms for a life sciences patient support services provider. It said that work focused on streamlining operations and reducing technology and operating costs.

Brand and awards

Persistent said Kantar BrandZ ranked it sixth in the business technology and services category in a Most Valuable Indian Brands listing. It also said Fortune India jointly recognised Founder, Chairman and Managing Director Anand Deshpande and Kalra in an India's Best CEOs ranking for the IT services mid-cap category for 2025.

The company said Kalra won an ET Edge India award in an Impactful Large Enterprise CEO category. It also said Deshpande was elected a Fellow of the Indian National Science Academy. Kalra received a Distinguished Alumnus Award from the Indian Institute of Management, Calcutta, according to the company.

Persistent also said Microsoft endorsed it as a Frontier Firm. It said it won an ISG Star of Excellence Award for AI and Data Excellence. The company said ISG Provider Lens cited it as a leader in Generative AI Services and that Everest Group placed it as a leader in a Talent Readiness assessment focused on next-generation data, analytics and AI services.

Persistent's latest results place revenue growth alongside a focus on larger engagements and work that the company said includes data, cloud and digital engineering programmes across its target sectors.