Persistent Systems , a leading global technology services company, has reported strong financial performance for the second quarter of fiscal year 2026, surpassing analyst expectations. The company's Board of Directors approved the audited financial statements for the quarter and half year ended September 30, 2025, during a meeting held on October 14, 2025.

Key Financial Highlights

• Revenue: $406.20 million, representing a 17.6% increase year-over-year
• Net Profit: ₹471.00 crore, up 14.8% from ₹410.00 crore in Q1
• Revenue (in INR): ₹3,580.00 crore, an increase of 7.5% from ₹3,330.00 crore in the previous quarter
• Analyst Estimates: Net profit of ₹436.00 crore and revenue of ₹3,521.00 crore

Financial Performance

Persistent Systems demonstrated robust growth in the quarter, with its consolidated net profit reaching ₹471.00 crore, marking a significant 14.8% increase from the previous quarter's ₹410.00 crore. This performance notably exceeded the analyst consensus estimate of ₹436.00 crore.

The company's quarterly revenue showed strong momentum, reaching $406.20 million, which represents a 17.6% increase compared to the same period in the previous year. In Indian Rupees, the revenue climbed to ₹3,580.00 crore, up 7.5% from ₹3,330.00 crore in the previous quarter. This figure slightly surpassed the market expectations of ₹3,521.00 crore.

Segment-wise Performance

Persistent Systems' financial results reveal a balanced growth across its key business segments:

The Banking, Financial Services and Insurance (BFSI) sector led the growth with a 10.2% quarter-on-quarter increase, followed by Healthcare & Life Sciences at 7.1%, and Software, Hi-Tech and Emerging Industries at 5.3%.

Additional Information

The company has made both consolidated and standalone financial statements available on its website. The approval of these financial statements was communicated to BSE Limited and National Stock Exchange of India Limited through a formal notification signed by Company Secretary Amit Atre.

Conclusion

Persistent Systems' Q2 results demonstrate the company's ability to deliver strong growth and profitability. The significant beat on both revenue and profit estimates underscores the company's robust business model and effective execution of its growth strategies. With a 17.6% year-over-year revenue growth, Persistent Systems appears well-positioned to capitalize on emerging opportunities in the technology services sector.

Persistent Systems has reported robust financial results for the second quarter, alongside ambitious growth targets driven by its AI strategy and expanding client base.

Financial Highlights

• Revenue: ₹35,807.20 crore ($406.20 million), up 17.6% year-over-year
• EBIT: ₹5,837.40 crore, with a margin of 16.3%
• Profit After Tax (PAT): ₹4,714.70 crore, representing a 45.1% year-over-year increase

Key Performance Indicators

Growth Strategy and AI Focus

Persistent Systems has outlined an ambitious growth strategy, targeting a 17% revenue compound annual growth rate (CAGR). This strategy is underpinned by:

1. AI-driven initiatives
2. Expansion of client base
3. Maintenance of a 16% EBIT margin
4. Projected 45% increase in profit after tax

The company's focus on AI-led, platform-driven services is expected to be a key driver of this growth. Persistent is leveraging its SASVA platform for AI infrastructure and iAURA for process and document intelligence across various industries.

Segment Performance

• Banking, Financial Services and Insurance (BFSI): ₹12,455.60 crore
• Healthcare & Life Sciences: ₹9,027.32 crore
• Software, Hi-Tech and Emerging Industries: ₹14,324.28 crore

Client Acquisition and Expansion

Persistent Systems reported significant wins across various sectors:

• Collaboration with a global infrastructure provider to scale AI infrastructure platforms
• Development of R&D for endpoint security products for a global cybersecurity leader
• Transformation of tax and accounting software for a global fintech platform
• Leveraging GenAI to improve customer experience for a leading wealth management company

Management Commentary

Sandeep Kalra, CEO and Executive Director of Persistent Systems, stated, "We are pleased to report our 22nd sequential quarter of revenue growth, up 4.2% Q-o-Q and 17.6% Y-o-Y, with operating margin improving to 16.3%. Our AI strategy builds on a strong platform-led foundation and is powered by deep domain knowledge, differentiated IPs, accelerators and strategic partnerships."

Industry Recognition

The company's performance has been recognized by several industry accolades:

• Received the 'Growth Honor of the Year' at Everest Group Elevate 2025
• Named a Leader in the Everest Group Talent Readiness for Next-generation Cloud Services PEAK Matrix® Assessment 2025
• Won multiple ISG Customer Experience (CX) Star Performer Awards

Conclusion

Persistent Systems' strong Q2 results and ambitious growth targets reflect its strategic focus on AI-driven solutions and expanding client relationships. The company's ability to maintain high growth rates while improving profitability positions it well in the competitive IT services landscape.

As Persistent Systems continues to invest in AI capabilities and expand its service offerings, it appears well-positioned to capitalize on the growing demand for digital transformation and AI-powered solutions across various industries.