Persistent Systems , a global leader in Digital Engineering and Enterprise Modernization, has announced its financial results for the fourth quarter and fiscal year 2025, showcasing robust growth and strategic developments.

Q4 FY25 Financial Highlights

• Revenue reached Rs 3,242.11 crore, up 25.2% year-over-year
• Net profit rose to Rs 395.76 crore, up 25.5% year-over-year
• Board recommends final dividend of Rs 15 per share, bringing total FY25 dividend to Rs 35 per share

FY25 Performance Overview

• Annual revenue grew to $1,409.10 million, an 18.8% increase from FY24
• EBIT for the year was Rs 17,512.60 million, with a margin of 14.7%
• Net profit for FY25 reached Rs 14,001.60 million, up 28.0% year-over-year

Key Financial Metrics

Strategic Developments and Governance

• The Board of Directors recommended a final dividend of Rs 15 per equity share for FY25, bringing the total dividend for the year to Rs 35 per share.
• Mr. Vinit Teredesai, Chief Financial Officer, has been appointed as an Additional Director (Executive Member) to the Board, subject to shareholder approval at the upcoming Annual General Meeting.
• The company plans to appoint M/s. B S R & Co. LLP as the new Statutory Auditors for a five-year term, starting from FY26.

Operational Highlights

• The company's order booking for Q4 FY25 was $517.50 million in Total Contract Value (TCV) and $350.20 million in Annual Contract Value (ACV).
• Persistent maintained its focus on AI-led transformation, supported by early investments and a clear vision to embed AI across clients' digital journeys.
• The company continued to strengthen its partnerships with major cloud providers and received several industry recognitions, including the Google Cloud Infrastructure Modernization Partner Award for Asia Pacific.

Future Outlook

• Persistent Systems aims to achieve $2 billion in annual revenue by FY27.
• The company plans to focus on AI-led platform-driven services to drive future growth.

Management Commentary

Dr. Anand Deshpande, Founder, Chairman and Managing Director, commented on the results: "Persistent is leading AI-led transformation, supported by early investments, strong execution, and a clear vision to embed AI across our clients' digital journey. Celebrating 35 years since our foundation and 15 years of being publicly listed on the National Stock Exchange of India, our unwavering commitment to innovation and client success continues to set us apart as we drive the future of technology with purpose and precision."

Sandeep Kalra, Chief Executive Officer and Executive Director, added: "We are proud to have delivered our 20th sequential quarter of revenue growth, with an EBIT margin of 15.6%. Despite the uncertain macroeconomic environment, our consistent performance reflects the trust of our clients, enduring strength of our capabilities, and operational discipline. As we look ahead, we are optimistic about sustaining progress to reach $2 billion in annual revenue by FY27."

With these strong financial results and strategic moves, Persistent Systems continues to position itself as a leader in the digital engineering and enterprise modernization space, focusing on AI-led innovation and sustainable growth.

Persistent Systems Limited , a leading global technology services company, has received a significant boost to its strategic growth plans. The National Company Law Tribunal (NCLT) in Mumbai has sanctioned the merger of Capiot Software Private Limited, a wholly-owned subsidiary, into Persistent Systems.

Key Highlights of the Merger

• Approval Date: The NCLT Mumbai sanctioned the merger on April 9, 2025.
• Effective Date: The merger will be effective from April 1, 2024 (the appointed date).
• Regulatory Compliance: The merger adheres to Sections 230-232 of the Companies Act, 2013.

Strategic Implications

The merger is expected to streamline operations and potentially expand Persistent Systems' capabilities in the software development and IT services sector. By absorbing Capiot Software, Persistent aims to:

1. Maintain a simpler corporate structure
2. Capitalize on synergy gains
3. Eliminate duplicate corporate procedures
4. Achieve economies of scale

Financial Impact

While specific financial details of the merger were not disclosed, the consolidation is anticipated to result in:

• Reduced administrative and managerial costs
• Unified control of operations
• Streamlined legal and regulatory compliance processes

Management's Perspective

The Board of Directors of Persistent Systems approved the merger unanimously on January 20, 2024, indicating strong management confidence in the strategic move. The company believes this merger is in the best interests of both entities and their stakeholders.

Regulatory Considerations

The NCLT order includes several key directives:

• Persistent Systems must file the certified copy of the order with the Registrar of Companies within 30 days.
• The company needs to address stamp duty requirements within 60 days.
• All employees of Capiot Software will be transferred to Persistent Systems without any break in service and on terms no less favorable than their current conditions.

Market Reaction

As a publicly-traded company listed on both the Bombay Stock Exchange and National Stock Exchange, Persistent Systems has duly informed the stock exchanges of this development under Regulation 37(6) of the SEBI LODR Regulations, 2015.

Looking Ahead

This merger marks a significant step in Persistent Systems' growth strategy. As the IT services landscape continues to evolve, the company appears poised to leverage its expanded capabilities to enhance its market position and deliver increased value to its clients and shareholders.

Investors and industry observers will be keenly watching how Persistent Systems integrates Capiot Software's operations and capitalizes on the potential synergies in the coming months.