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Informist, Tuesday, Jan. 20, 2026

 

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--Persistent Systems Oct-Dec consol net profit INR 4.39 bln 
--Analysts saw Persistent Systems Oct-Dec consol net profit at INR 4.50 bln 
--Persistent Systems Oct-Dec consol revenue INR 37.78 bln 
--Analysts saw Persistent Systems Oct-Dec consol revenue at INR 37.36 bln 
--Persistent Systems Oct-Dec consol PAT INR 4.39 bln vs INR 4.71 bln qtr ago 
--Persistent Systems Q3 consol sales INR 37.78 bln vs INR 35.81 bln qtr ago 
--Persistent Systems to pay INR 22 per share interim dividend 
--Persistent Systems Q3 consol PAT includes one-time cost of INR 890.25 mln 
--Persistent Systems Q3 one-time cost INR 890.25 mln due to new labour codes 
--Persistent Systems Q3 PAT excluding one-time cost is INR 5.28 bln 
--Persistent Systems Apr-Dec consol PAT INR 13.36 bln vs INR 10.04 bln yr ago 
--Persistent Systems Apr-Dec consol sales INR 106.93 bln vs INR 86.97 bln 

--Persistent Systems Oct-Dec consol revenue $422.50 mln, up 4% on qtr 

--Persistent Systems Oct-Dec consol EBIT INR 5.43 bln, down 7% on qtr 

--Persistent Systems Oct-Dec consol EBIT margin 14.4% vs 16.3% qtr ago 

--Persistent Systems Q3 consol EBIT margin, ex-labour code impact, at 16.7% 

--Persistent Systems Oct-Dec deals' total contract value $674.50 mln 

--Persistent Systems Oct-Dec annual contract value $501.90 mln 

--Persistent Systems had 61 large clients in Oct-Dec vs 56 qtr ago 

--Persistent Systems Oct-Dec BFSI sales $147.8 mln, up 29.3% on year 

--Persistent Systems Oct-Dec health, life sales $107.4 mln, up 7.4% on year 

--Persistent Systems Q3 software, hi-tech ops sales $167 mln, up 14.7% on yr 

--Persistent Systems Oct-Dec total headcount 26,711 vs 26,224 qtr ago 

--Persistent Systems Oct-Dec trailing 12-mo attrition 13.5% vs 13.8% qtr ago 

--Persistent Systems Oct-Dec utilisation 88.4% vs 88.2% qtr ago 

--Persistent Systems Q3 consol revenue up 4.1% on qtr in constant currency 

--Persistent Systems CEO:Demand shifting to larger, more complex engagements 

 

By Shakshi Jain

 

MUMBAI – Persistent Systems Ltd. Tuesday posted a single-digit sequential decline in its consolidated net profit for the December quarter, missing analysts' already beaten-down expectations. This was due to a one-time cost arising from an increase in the company's statutory obligations, prompted by the new labour codes which came into effect in November. This was the first time in six quarters that the company posted a sequential decline in its net profit. Meanwhile, the company's top line for the quarter comfortably surpassed the Street's expectations, helped by growth across segments in the three months ended Dec. 31.

 

Persistent Systems' consolidated net profit for the reporting quarter declined nearly 7% sequentially, but rose almost 18% on year to INR 4.39 billion. The bottom line was dragged down by a one-time cost of INR 890.25 million arising from accounting changes induced by the new labour codes. In the absence of the said one-time cost, the company's consolidated net profit for the quarter would have been INR 5.28 billion, the change in tax notwithstanding. This would have been much higher than the Street's expectation of INR 4.50 billion in net profit for the December quarter. 

 

The company's consolidated revenue from operations in Oct-Dec rose nearly 6% sequentially and over 23% on year to INR 37.78 billion. Analysts' consensus estimate had pegged the company's top line for the December quarter at INR 37.36 billion. 

 

In dollar terms, the company reported a revenue of $422.5 million for the December quarter, up 4% on quarter and 17.3% on year. Its revenue in contant currency terms grew 4.1% on quarter and 17.3% on year during the quarter.

 

Persistent Systems' total deal contract value in the December quarter was $674.50 million, higher than the $609.20 million in total contract value recorded in the trailing quarter. This is above the $500 million-mark, a trend seen in the preceeding five quarters, and in line with the Street's expectations. The company reported an annual contract value of $501.90 million for the reporting quarter.

 

The company's large clients, meaning those clients from whom the company gets an annualised revenue of more than $5 million, increased to 61 in Oct-Dec from 56 in the September quarter. "As we move ahead, our priority remains sustaining growth through consistent execution as demand continues to shift toward larger, more complex engagements," Chief Executive Officer and Executive Director Sandeep Kalra said in a press release.

 

The company's total expenditure for the December quarter rose neary 5% sequentially and almost 21% on year to INR 31.65 billion.  

 

OPERATIONS, SEGMENTS

 

Persistent Systems' consolidated earnings before interest and tax fell 7% sequentially to INR 5.43 billion in the December quarter. Its EBIT margin for Oct-Dec contracted 190 basis points from the trailing quarter to 14.4%. However, excluding the one-time impact from the labour codes, the company's EBIT margin for the December quarter expanded 40 bps to 16.7%, the company said.

 

Revenue from the company's largest segment--software, hi-tech, and emerging industries—rose around 4.5% sequentially to INR 14.96 billion in the December quarter. Revenue from the segment grew 14.7% on year to $167 million in the quarter. The segment contributed 39.6% of the company's overall top line for Oct-Dec, down from 40% in the trailing quarter and 40.5% in the year-ago quarter.

 

Revenues from the banking, financial services, and insurance segment rose 6% sequentially to INR 13.21 billion in Oct-Dec. Sales in the segment grew 29.3% on year to $147.8 million. The segment accounted for 35% of the company's overall top line for the December quarter, up from 34.8% in the September quarter and 31.7% in the year-ago December quarter.

 

The company's healthcare and life sciences segment recorded a 6.4% sequential growth in revenue to INR 9.6 billion in Oct-Dec. The metric rose 7.4% on year to $107.4 million in the three months ended December. Sales contribution from the segment improved mildly to 25.4% in the reporting quarter from 25.2% in the trailing quarter but fell from 27.8% in the corresponding quarter of 2024-25 (Apr-Mar).

 

As of Dec. 31, the company's headcount was 26,711, up from 26,224 at the end of the September quarter. Employee utilisation improved to 88.4% from 88.2% in the trailing quarter. Its trailing 12-month attrition for the December quarter was 13.5%, down 30 bps from the September quarter.

 

For the nine months ended December, the company reported a consolidated net profit of INR 13.36 billion, up 33% on year. Its revenue for the period rose nearly 23% on year to INR 106.93 billion. The company's board approved an interim dividend of INR 22 per share for FY26.

 

The company announced its December quarter earnings after market hours. On Tuesday, shares of the company ended 1.5% lower at INR 6,342.50 on the National Stock Exchange.  End

 

US$1 = INR 90.98

 

Edited by Tanima Banerjee

 

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