Persistent Extends Growth Run to 23 Quarters, Profit Slips 7% QoQ

Persistent Systems has reported a 6.8% quarter on quarter decline in consolidated net profit to ₹439.45 crore for the December quarter, even as revenue rose 5.5% sequentially and 23.4% year on year to ₹3,778.21 crore.

Constant currency revenue growth stood at 4.1% QoQ and 17.3% YoY.

The company’s EBIT margin came in at 14.4%, weighed down by a one-time impact linked to the implementation of New Labour Codes. Excluding this impact, EBIT stood at ₹6,317.8 crore, translating into a margin of 16.7% and a YoY growth of 38.6%.

Persistent said the one-time impact reduced EBIT by around 2.3% and PAT by around 1.8% during the quarter.

“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,” Sandeep Kalra, CEO and executive director, Persistent Systems said.

Order bookings for the quarter stood at $674.5 million in total contract value and $501.9 million in annual contract value, reflecting continued demand across software, BFSI and healthcare segments.

The company said growth was driven by deeper participation in strategic client programs and steady demand for data, cloud and digital engineering services.

“Our performance reflects a deeper role in strategic client programs and sustained demand for data, cloud, and digital engineering across our core industries,” Kalra said.

Persistent also said it is deploying Agentic AI internally to improve productivity and accelerate adoption at scale.

“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,” Kalra said.

For the quarter, key client wins included AI-led digital commerce programs, cloud-native ERP migrations, data transformation deals for global banks, cybersecurity and compliance programs for a tier-1 US bank, and cloud and automation programs for healthcare and life sciences clients.

“As we move ahead, our priority remains sustaining growth through consistent execution as demand continues to shift toward larger, more complex engagements,” Kalra said.

For Q3, most of the Indian IT firms recorded lower profits due to a one time impact of New Labour Code changes.