Persistent Systems Q3 FY26 Results Preview: Revenue Growth Expected Despite Margin Pressure

Persistent Systems is scheduled to report its Q3 FY26 earnings for the October-December 2025 quarter on Tuesday, January 20. Street expectations point to steady sequential revenue growth, supported by continued traction in BFSI and healthcare verticals, while margins are likely to face pressure from wage hikes.

Revenue Growth Projections

According to the CNBC-TV18 poll, the IT services company is expected to deliver consistent growth across key metrics. Dollar revenue is projected to rise 3.6% quarter-on-quarter, while rupee revenue growth is estimated at 4.8% sequentially.

Metric:	Q3 FY26E	Q2 FY26	QoQ Change
Revenue ($ million):	421.00	406.20	+3.6%
Revenue (₹ crore):	3,751.00	3,580.00	+4.8%
Constant Currency Growth:	3.7%	4.4%	Decline

Constant currency revenue growth is expected at around 3.7% for the quarter, showing a slight moderation from the previous quarter's performance.

Margin Pressure from Wage Hikes

Operating profitability is expected to face headwinds in the upcoming quarter. EBIT is projected to remain flat at ₹583.00 crore, but margins are likely to compress due to wage hike impact.

Profitability Metric:	Q3 FY26E	Q2 FY26	Change
EBIT (₹ crore):	583.00	583.00	Flat
EBIT Margin:	15.5%	16.3%	-80 bps
Net Profit (₹ crore):	454.00	471.00	-3.5%

Analysts attribute the margin pressure to the impact of wage hikes, estimated at around 180 basis points, which will be partially offset by operating efficiencies and rupee depreciation benefits.

Sector Performance and Growth Drivers

Growth is likely to be led by BFSI and healthcare verticals, which have shown consistent traction for the company. However, the hi-tech segment is expected to remain weak amid cautious discretionary spending by clients in this vertical.

Deal Momentum and Key Focus Areas

Deal momentum will be a critical area of investor focus during the earnings announcement. Persistent Systems reported total contract value (TCV) of $609.20 million in Q2 FY26, with net new TCV at $350.80 million. Investors will closely monitor whether deal wins remain resilient and how conversion timelines are shaping up amid macro headwinds.

According to Kotak Institutional Equities, investor attention is likely to focus on several key areas:

Deal momentum and sustainability of growth trajectory
Strength of the deal pipeline and conversion rates
Discretionary spending trends across different verticals
Medium-term profitability targets and margin outlook
Progress on acquisitions critical to the company's $5 billion revenue ambition
Demand trends in the healthcare vertical, particularly the payer segment

The upcoming results will provide insights into how well the company is navigating the current market environment while pursuing its ambitious growth targets.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.55%	+0.33%	+2.79%	+15.12%	+6.03%	+708.56%

Persistent Systems Limited has announced a key leadership appointment, naming Ms. Nitha Puthran as Executive Vice President and Senior Managerial Person effective January 2, 2026. The appointment was formally disclosed to the stock exchanges under regulatory compliance requirements.

Appointment Details

The company informed the National Stock Exchange of India Limited and BSE Limited about the appointment through an official communication dated January 2, 2026. The disclosure was made in accordance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Parameter:	Details
Position:	Executive Vice President and Senior Managerial Person
Effective Date:	January 2, 2026 (EST)
Reason:	Appointment of Senior Managerial Person
Regulatory Compliance:	SEBI Regulation 30

Professional Background

Ms. Nitha Puthran brings substantial experience to her new role at Persistent Systems. She holds a Bachelor of Engineering degree from the University of Bombay (Mumbai) and has accumulated over 20 years of proven expertise in establishing and scaling cloud, infrastructure, and managed services practices globally.

Her professional accomplishments include:

Successfully establishing infrastructure and cloud businesses
Leading major transformational initiatives across organizations
Building multi-million-dollar infrastructure portfolios within the IT sector
Securing groundbreaking cloud transformation deals specifically in financial services

Strategic Significance

The appointment reflects Persistent Systems' focus on strengthening its leadership team with experienced professionals in cloud and infrastructure services. Ms. Puthran's extensive background in scaling cloud practices and managing large infrastructure portfolios aligns with the company's strategic objectives in these critical technology domains.

Her proven track record in securing significant cloud transformation deals, particularly in the financial services sector, positions her to contribute meaningfully to Persistent Systems' growth initiatives and client engagement strategies.

Regulatory Compliance

The appointment disclosure was signed by Company Secretary Amit Atre (ICSI Membership No.: ACS 20507) and submitted to both major Indian stock exchanges. The communication referenced Persistent Systems' NSE symbol PERSISTENT and BSE scrip code 533179, ensuring full regulatory transparency and compliance with listing requirements.