Persistent Systems (PERSISTENT) Q4 25/26 earnings summary

Executive summary

• Achieved FY26 revenue of $1.65B, up 17.4% YoY, with EBIT margin at 15.6% and PAT margin at 12.6%.

• Q4 FY26 revenue was $436M, up 16.2% YoY and 3.2% QoQ, marking the 24th consecutive quarter of growth.

• Board recommended a final dividend of INR 18 per share, total FY26 dividend at INR 40.

• Audited financial results for FY26 were approved with an unmodified opinion from statutory auditors.

• Recognized as the fastest-growing IT services brand globally in 2026 by Brand Finance.

Financial highlights

• FY26 EBIT grew 31.5% YoY to 23,034.7M, and PAT increased 33.2% YoY to 18,651.2M.

• Q4 FY26 EBIT margin was 16.3%, PAT margin 13.1%, and EPS at INR 33.80, up 31.9% YoY.

• Operating cash flow to PAT ratio was 114.3% in Q4 FY26; operational cash flow to PAT at 93.6% for FY26.

• Return on Capital Employed (ROCE) at 45.2% in Q4; Return on Equity (ROE) at 25.0%.

• Total cash and investments at INR 27,622.1M as of March 31, 2026.

Outlook and guidance

• Confident in reaching $2B run-rate by FY27, barring major macro disruptions.

• Focus on AI-led, platform-driven strategy and ongoing investments in engineering, data, and global delivery.

• Margin aspiration remains at 16-17%, with growth and capability investments prioritized.

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

• Macro risks like geopolitical tensions and client spending patterns could impact sector-wide growth.