Persistent Systems has unveiled ambitious revenue growth targets while taking a strategic decision to withhold future margin guidance from investors. The IT services company has set clear financial milestones as part of its long-term growth strategy.

Revenue Growth Targets

The company has established specific revenue milestones for the coming years:

These targets represent significant growth aspirations for the technology services provider, indicating the company's confidence in its market position and ability to scale operations substantially over the next several years.

Margin Guidance Policy

Persistent Systems has made a notable strategic decision regarding its communication with investors and analysts. The company has explicitly declined to offer future margin guidance, marking a shift in its investor relations approach. This decision suggests the company prefers to focus investor attention on revenue growth rather than margin predictions, which can be subject to various market and operational variables.

Strategic Implications

The combination of aggressive revenue targets and the absence of margin guidance reflects a growth-focused strategy. By setting clear revenue milestones extending to 2030, Persistent Systems is signaling its long-term commitment to market expansion and business development. The decision to avoid margin guidance may provide the company with greater operational flexibility as it pursues these ambitious growth objectives.

Persistent Systems delivered another quarter of steady growth in Q3 FY26, driven by sustained demand for data, cloud and digital engineering services across key client segments. The IT services company reported profit after tax of ₹439 crore, reflecting an 18% year-on-year increase despite a 7% sequential decline attributed to labour code impact.

Financial Performance Overview

The company's financial metrics for Q3 FY26 demonstrated resilience amid a mixed global technology spending environment:

In constant currency terms, revenue grew 17.3% year-on-year and 4.1% quarter-on-quarter, demonstrating stable execution capabilities. The company noted that one-time labour code impact reduced EBIT by approximately 2.3% and PAT by about 1.8% during the quarter.

Operating Margins and Profitability

Operating performance remained healthy despite sequential moderation. Earnings before interest and tax (EBIT), excluding one-time impacts, reached ₹632 crore with a margin of 16.7%. This represented an 8.2% sequential increase and a substantial 38.6% jump year-on-year.

Dividend Declaration

The board of directors declared an interim dividend of ₹22 per share on equity shares of face value ₹5 each for financial year 2025-26, reflecting confidence in the company's financial position and growth prospects.

Management Commentary

Sandeep Kalra, CEO and Executive Director of Persistent Systems, highlighted that the company delivered its 23rd consecutive quarter of revenue growth. He attributed this performance to deeper engagement in strategic client programmes and sustained demand across core industries. Key growth drivers include:

• Data, cloud and digital engineering services
• Larger and more complex technology engagements
• Focus on operational efficiency and innovation
• Implementation of agentic artificial intelligence within operations

Strategic Outlook

Persistent Systems emphasized its priority of sustaining growth through consistent execution as enterprise demand continues shifting toward long-term, high-value digital transformation programmes. The company's focus on innovation, including AI adoption at scale, positions it well for capturing emerging opportunities in the evolving technology landscape.