Persistent Systems Limited Earnings Summary — Q4 FY2026

• Persistent Systems achieved a major scale-up, crossing ₹4,056 Cr in quarterly revenue for the first time in Q4 FY26.
• Quarterly net profit surged 33.6% YoY to ₹529 Cr, outperforming revenue growth and indicating strong operational leverage.
• Operating Profit Margin (OPM) improved to 19%, up from 18% in the same quarter last year, reflecting high-value digital engineering focus.
• The company maintains an elite capital efficiency profile with ROCE improving to 34% for the full year 2026.
• Despite a spike in Interest and Depreciation costs, Profit Before Tax (PBT) grew 33.5% YoY to ₹674 Cr.
• The balance sheet remains exceptionally strong with equity reserves jumping to ₹7,759 Cr, up from ₹6,241 Cr YoY.
• The company effectively managed other income volatility, seeing a rebound to ₹33 Cr in Q4 compared to a loss in the previous quarter.

Management remains focused on high-growth Digital Engineering and CX transformation segments, aiming to outpace tier-1 peers through AI-led transformation.

Improving

A significant sequential recovery in net profit (up 20.5% QoQ) and stable 19% margins indicate superior execution versus the broader IT sector.

The outlook is bolstered by a 5-year profit CAGR of 36% and a solid transition into a Tier-1 IT services powerhouse, supported by increased FII/DII confidence.