Persistent Systems announced its Q2 FY26 results, achieving a revenue of $406.2 million, a 17.6% year-on-year growth. The company reported strong performance across key financial metrics, including a 16.3% EBIT margin and significant growth in profit after tax. New bookings remained robust, with a solid order book. The company is making strides in Al-led initiatives, enhancing its service offerings and customer engagement. The company expects to reach $2 billion by the end of FY27.
Financial Performance
In Q2 FY26, Persistent Systems delivered revenue of $406.2 million, reflecting a 4.2% quarter-on-quarter growth and 17.6% year-on-year growth. In rupee terms, the growth was 7.4% quarter-on-quarter and 23.6% YoY. The EBIT margin reached 16.3%, driving 12.7% QoQ and 43.7% YoY growth in absolute terms. Profit after tax for the quarter was up 13.2%, a 11% rise quarter-on-quarter, and 45.1% year-on-year.
Order Book Highlights
The total contract value for the quarter came in at $609.2 million, with new bookings at $350.8 million in TCV terms. The annual contract value totalled $447.9 million, including $254.4 million from new bookings.
Client Metrics
Persistent saw robust year-on-year growth across key client cohorts:
- Top five clients’ revenue up 23.4%
- Top 10 up 22.4%
- Top 20 up 22.7%
- Top 50 up 21.4%
The number of clients exceeding $75 million annually rose from 3 to 4.
Geographic Performance
Geographic performance in YoY terms:
- North America grew by 15.4%
- Europe grew by 37.9%
- India grew by 19%
Industry Segments
This quarter’s growth was led by BFSI, followed by software hi-tech and emerging industries, and healthcare life sciences, which grew by 30%, 15.5%, and 6.6%, respectively, on a year-on-year basis.
Organizational Updates
Effective October 1, 2025, merit increments were implemented for all global employees. Jaideep Dhok was promoted to Chief Operating Officer, effective August.
Operational Updates
At the end of Q2 FY26, the total headcount reached 26,224, up 884 from the last quarter. Trailing 12-month attrition improved slightly to 13.8% from 13.9%.
Key Deal Wins
Persistent was selected by a cloud infrastructure provider to accelerate its transformation. The company was also selected by an energy technologies company to take over the development and maintenance of its critical grid technology platform.
Source: BSE
