Persistent Systems reported a 6.8% quarter-on-quarter decline in consolidated net profit to ₹439.45 crore for the December quarter, as margins were impacted by a one-time adjustment related to the implementation of New Labour Codes. Despite the profit dip, the company delivered healthy revenue growth, with consolidated revenue rising 5.5% sequentially and 23.4% year-on-year to ₹3,778.21 crore, underscoring sustained demand across its core markets.
In constant currency terms, revenue grew 4.1% quarter-on-quarter and 17.3% year-on-year. Persistent said the one-time labour code-related adjustment had a noticeable impact on profitability, reducing EBIT by around 2.3% and profit after tax by approximately 1.8% during the quarter. As a result, reported EBIT margin stood at 14.4%.
Excluding the exceptional impact, the company’s operating performance remained strong. Adjusted EBIT came in at ₹6,317.8 crore, translating into a margin of 16.7% and a year-on-year growth of 38.6%. Highlighting the consistency in execution, Sandeep Kalra, CEO and executive director of Persistent Systems, said, “We delivered sustained performance, achieving our 23rd sequential quarter of revenue growth with 4.0% quarter-on-quarter and 17.3% year-on-year growth.”
Deal momentum remained healthy during the quarter. Order bookings reached $674.5 million in total contract value (TCV) and $501.9 million in annual contract value (ACV), supported by steady demand across key verticals including software and hi-tech, banking and financial services, and healthcare. The company said it continues to deepen its engagement with clients by playing a more strategic role in large transformation programs.
“Our performance reflects a deeper role in strategic client programs and sustained demand for data, cloud, and digital engineering across our core industries,” Kalra said. He also pointed to Persistent’s internal adoption of emerging technologies to drive efficiency, adding, “We are also applying Agentic AI within our own operations, as a ‘customer zero’ to improve productivity and speed adoption at scale, an approach further validated by our recognition as a Microsoft Frontier Firm.”
Overall, while near-term profitability was affected by a one-off regulatory adjustment, Persistent Systems’ underlying fundamentals—driven by strong revenue growth, robust order bookings, and continued investment in AI-led delivery—remain resilient as the company enters the next phase of growth.
