Persistent Systems Q3 revenue up, profit misses estimates as labour code weighs; dividend declared

Persistent Systems delivered another quarter of steady growth in Q3 FY26, marking its 23rd consecutive quarter of revenue expansion, even as margins came under pressure from the new labour codes.

Revenue

rose 5.5% sequentially to ₹3,778.2 crore, while net profit slipped 6.7% QoQ to ₹439.4 crore. EBITDA margin stood at 14.4%, compared with 16.3% in the previous quarter, reflecting a one-time labour code impact of ₹89 crore.

The company’s dollar revenue grew 4% QoQ to $422.5 million, while the board declared an interim dividend of ₹22 per share.

Persistent’s performance was broadly in line with expectations, though net profit and EBIT fell short of CNBC-TV18 polls, which had forecast higher profitability.

CEO Sandeep Kalra said the results reflected a deeper role in strategic client programmes and sustained demand for data, cloud and digital engineering across the company’s core industries.

He added that Persistent is applying Agentic AI within its own operations as a “customer zero” to boost productivity and accelerate adoption at scale, an approach validated by the company’s recognition as a Microsoft Frontier Firm.

Also Read: SRF Q3 results: Profit up 60%, beats estimates despite labour code impact; dividend declared

Kalra emphasised that the company’s priority remains sustaining growth through consistent execution, as demand shifts towards larger and more complex engagements. Persistent’s Q3 results show that while growth momentum remains intact, near-term margins are likely to be impacted by regulatory and one-time factors.