Persistent Systems Ltd Q1 FY26 Results & Concall Highlights: Revenue, Margins & Order Book

Published 3 Aug 2026 | IT - Software | Market Cap: ₹88.0K Cr

Persistent Systems is confident of continuing growth across key verticals, targeting top-quartile growth in the sector. Persistent Systems aims to reach a $2 billion revenue run rate by the end of FY27, indicating strong growth expectations.

From Persistent Systems Ltd's Q1 FY26 earnings-call transcript · updated 23 Aug 2026.

Price

₹5,668

Market Cap

₹88.0K Cr

P/E Ratio

44.2

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Persistent Systems Ltd — Quarterly revenue & net profit

Revenue Net Profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹4.1K Cr, net profit ₹529 Cr.

Full financials →

📊 Revenue & Sales Performance

→Persistent Systems is confident of continuing growth across key verticals, targeting top-quartile growth in the sector.
→The BFSI (Banking, Financial Services and Insurance) segment is expected to lead growth for the year, followed by high-tech and healthcare life sciences.
→Healthcare vertical will continue to grow, though not at the elevated rates of the past year; no further degrowth expected.
→The company aims to reach a $2 billion revenue run-rate by the end of FY27.
→Pipeline and order book remain healthy, though decision-making is cautious due to macroeconomic factors.
→Larger deals are in the pipeline, creating potential upside in future sales.
→Revenue conversion focuses on ACV from multi-year deals, illustrating steady contractual growth.
→Management remains prudent, deferring wage hikes to navigate current uncertainties.
→No specific forward-looking guidance numbers given, but overall outlook is positive with continued investment in AI capabilities and sales channels.

📈 Profitability & Margins

→Persistent Systems aims to reach a $2 billion revenue run rate by the end of FY27, indicating strong growth expectations.
→EBIT margin is expected to improve by 200-300 basis points by FY27 from ~15% in Q1 FY26.
→ESOP costs, which impacted margins recently, are expected to remain flat before gradually reducing in FY27.
→Revenue growth is expected to be led by BFSI, followed by software high-tech and healthcare life sciences verticals, all projecting growth.
→Trailing 12-month attrition and other costs are being managed prudently to support margin expansion.
→EPS grew 36.5% YoY in Q1 FY26; continued profit growth reflects operational leverage and better collections.
→Persistent maintains a confident stance on margin trajectory with operational efficiency and pricing initiatives driving future profits.
→No specific forward guidance provided on quarterly earnings, but the overall tone is confident in achieving top-quartile industry growth.

See what Persistent Systems Ltd said on profitability & margins — free account, 30 seconds.

🏗️ Capital Expenditure Plans

→The transcript does not explicitly mention specific current or future capex (capital expenditures) plans.
→Persistent Systems is focusing on strategic investments primarily in AI capabilities and platform development, including their generative AI-powered digital engineering platform, SASVA 3.0.
→The company acquired Arrka last year, which strengthened their Digital Trust Layer capabilities integrated across platforms like SASVA, iAURA, and GenAI Hub.
→Investment is also being made in talent transformation and building AI-enabled workforce, highlighted by organizational changes such as hiring a new Chief Marketing Officer and Chief People Officer.
→There is mention of maintaining investments in SG&A and operational initiatives, implying ongoing strategic spend to support growth.
→No detailed capex or capital investment figures or plans are disclosed within the provided transcript.

💰 Fundraising & Capital Structure

→There is no explicit mention of any current or future fundraising through debt or equity in the provided transcript/pages.
→The company has not discussed raising new capital via debt or equity in the recent earnings call or disclosures.
→Focus remains on operational growth, margin improvement, large deal pipelines, and cautious cost management.
→Debt, cash, and investments appear stable, with total cash and investments at Rs. 307.8 million as of June 30, 2025.
→No forward-looking statements indicate plans for external fundraising at this time.

See what Persistent Systems Ltd said on fundraising & capital structure — free account, 30 seconds.

📋 Order Book & Pipeline

→Total Contract Value (TCV) for Q1 FY26 stood at USD 520.8 million.
→New bookings contributed TCV of USD 337.0 million.
→Annual Contract Value (ACV) of this TCV is USD 385.3 million.
→ACV from new bookings contributed USD 211.8 million.
→Management is reasonably confident about the growth journey and executable order book.
→Pipeline and order book are described as healthy despite a cautious market environment.
→Longer decision-making cycles noted, requiring a larger pipeline to maintain bookings.
→No specific forward-looking guidance given on order book growth, but larger deal pipelines are present.
→Management will let future quarters unfold before giving concrete updates on order book and deal wins.

Key Metrics

What Persistent Systems Ltd's management said in earlier quarters

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Frequently Asked Questions

What were Persistent Systems Ltd Q1 FY26 results?

What is Persistent Systems Ltd share price analysis?

Persistent Systems Ltd currently shows a neutral. The stock trades at a P/E of 44.2 with a market cap of ₹88,024 Cr. Investors should review the full earnings analysis for detailed insights.

Is Persistent Systems Ltd planning capital expenditure?

The transcript does not explicitly mention specific current or future capex (capital expenditures) plans.

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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.