Persistent Systems is scheduled to report its Q3 FY26 earnings for the October–December 2025 quarter on Tuesday, January 20. Street expectations point
to steady sequential revenue growth, supported by continued traction in BFSI and healthcare, while margins are likely to soften.
According to the CNBC-TV18 poll, dollar revenue is seen rising 3.6% quarter-on-quarter to $421 million, compared with $406.2 million in Q2 FY26. Rupee revenue is estimated to increase 4.8% sequentially to ₹3,751 crore from ₹3,580 crore.
Operating profit (EBIT) is expected to remain flat at ₹583 crore, with EBIT margin seen declining to 15.5% from 16.3% in the previous quarter. Analysts attribute the margin pressure to the impact of wage hikes, estimated at around 180 basis points, partially offset by operating efficiencies and rupee depreciation. Net profit is projected to decline 3.5% quarter-on-quarter to ₹454 crore.
Constant currency revenue growth is expected at around 3.7% for the quarter. Growth is likely to be led by BFSI and healthcare verticals, while the hi-tech segment is expected to remain weak amid cautious discretionary spending.
Deal momentum will be a key focus area. Persistent reported total contract value (TCV) of $609.2 million in Q2 FY26, with net new TCV at $350.8 million. Investors will watch whether deal wins remain resilient and how conversion timelines shape up amid macro headwinds.
Kotak Institutional Equities said investor attention is likely to remain on deal momentum and sustainability of growth, the strength of the deal pipeline, discretionary spending trends across verticals, medium-term profitability targets, progress on acquisitions critical to the company’s $5 billion revenue ambition, and demand trends in the healthcare vertical, particularly the payer segment.
Persistent Systems: Key estimates (Q3 FY26E vs Q2 FY26)
| Metric | Q3 FY26E | Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue ($ mn) | 421.0 | 406.2 | +3.6% |
| Revenue (₹ cr) | 3,751 | 3,580 | +4.8% |
| EBIT (₹ cr) | 583 | 583 | Flat |
| EBIT margin | 15.5% | 16.3% | Fall |
| Net profit (₹ cr) | 454 | 471 | -3.5% |
| CC revenue growth | 3.7% | 4.4% | Fall |
