Despite a flat dollar performance across peers, Persistent Systems reported robust earnings for Q1 FY26, with a 22% jump in revenue and a 39% spike in profits—driven by consistent deal wins and platform-led AI growth.
Persistent Systems reported a consolidated revenue of ₹3,333.5 crore for the quarter ended June 2025, marking a 21.78% year-on-year rise from ₹2,737 crore in Q1 FY25.
The net profit for the quarter surged 38.7% to ₹424.93 crore compared to ₹306.41 crore a year earlier. In dollar terms, the company posted $389.7 million in revenue, up 18.8% year-on-year.
On a sequential basis, revenue grew 2.82% over ₹3,248 crore in the March 2025 quarter, while profit rose 7.37% from ₹396 crore.
CEO Sandeep Kalra said, “This performance reflects the strength of our AI-led, platform-driven strategy, focus on customer value creation, and our ability to unlock measurable outcomes.”
Persistent’s Total Contract Value (TCV) for the quarter came in at $520.8 million, while Annual Contract Value (ACV) stood at $385.3 million. The company said the number of large clients contributing more than $5 million in annual revenue rose to 56, up from 55 in March.
The top 10 clients contributed 42% of total revenue, maintaining the same level as the previous quarter.
The results follow a strong Q4 FY25, when Persistent outpaced even larger rivals like TCS, Infosys, and HCLTech. In that quarter, the company had reported ₹3,242 crore in revenue and ₹395.76 crore in profit, with 4.5% sequential growth in constant currency—beating analyst expectations.
CEO Kalra had then highlighted “operational discipline and resilience,” while founder and MD Anand Deshpande pointed to AI-led growth as a core driver.
“Persistent is leading the AI-led transformation, supported by early investments, strong execution, and a clear vision to embed AI across our clients’ digital journey,” Deshpande said.
The firm is still aiming to hit its long-term goal of $2 billion in annual revenue by FY27. For context, Persistent reported $375 million in revenue last quarter and $389.7 million this quarter—a step in the right direction.
While the company’s constant currency growth slightly missed expectations, it continues to outperform larger peers who remain stagnant. Persistent’s ability to sustain double-digit year-on-year revenue growth over 21 consecutive quarters positions it uniquely in the midcap IT space.
The post Persistent System’s ₹3,333 Cr Q1 Revenue Shows Mid-Size IT is Still Punching Above Its Weight appeared first on Analytics India Magazine.
