Q2 2026 Persistent Systems Ltd Earnings Call Transcript
Key Points
- Persistent Systems Ltd (BOM:533179) reported a 17.6% year-on-year revenue growth, reaching $406.2 million in Q2 FY26.
- The company achieved a 230 basis points improvement in EBIT margin year-on-year, reaching 16.3%.
- The total contract value for the quarter was $609.2 million, with new bookings at $350.8 million, indicating strong business momentum.
- Persistent Systems Ltd (BOM:533179) saw robust growth in key client cohorts, with top five clients' revenue up 23.4% year-on-year.
- The company has been recognized for its ESG efforts, receiving an AA rating from MSCI ESG and other accolades, highlighting its leadership in managing environmental, social, and governance risks.
- The company faces a potential 180 basis points impact on next quarter's margins due to wage hikes.
- Utilization declined by 50 basis points to 88.2%, impacting EBIT margins by 20 basis points.
- Higher provision for doubtful debts impacted margins by 50 basis points.
- The company experienced a decrease in other income due to lower mark-to-market gains on investments.
- Persistent Systems Ltd (BOM:533179) anticipates challenges in maintaining margin improvements as they plan to reinvest in growth and AI capabilities.
Ladies and gentlemen, good day, and welcome to Persistent Systems' earnings conference call for the second quarter of FY26 ended September 30, 2025.
We have with us today on the call, Dr. Anand Deshpande, Chairman and Managing Director; Mr. Sandeep Kalra, Executive Director and Chief Executive Officer; Mr. Vinit Teredesai, Executive Director and Chief Financial Officer; Mr. Jaideep Dhok, Chief Operating Officer; and Mr. Saurabh Dwivedi, Corporate Vice President, Finance and Strategy. (Operator Instructions) Please note, this conference is being recorded.
I now hand over the conference to Mr. Saurabh Dwivedi. Thank you, and over to you, sir.
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Thank you, Vinit. A very good day, and good evening to everyone. We sincerely appreciate your presence and participation in today's call. I will quickly outline the agenda for today's call. Sandeep will begin with an overview of our results and commentary on the
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