Q4 2026 Persistent Systems Ltd Earnings Call Transcript
Key Points
- Persistent Systems Ltd (BOM:533179) achieved a healthy revenue growth of 3.2% quarter-on-quarter and 16.2% year-on-year, marking the 24th consecutive quarter of revenue growth.
- The company reported a significant increase in profit after tax, with a growth of 20.4% quarter-on-quarter and 33.7% year-on-year.
- The EBIT margin for the quarter improved to 16.3%, translating to an EBIT growth of 21.4% quarter-on-quarter and 30.4% year-on-year.
- Persistent Systems Ltd (BOM:533179) has made substantial progress in expanding its AI capabilities, with over 120 patents filed and significant investments in AI platforms.
- The BFSI vertical demonstrated robust growth, with a 24.4% year-on-year increase, driven by expanding relationships with existing customers and new client wins.
- The company experienced a sequential moderation in bookings this quarter, consistent with normal seasonality, which may impact future revenue growth.
- There was a decline in operational cash flow to PAT, primarily due to higher unbilled revenue and delays in tax refunds and insurance premium payments.
- Europe's revenue declined by 1.8% sequentially, indicating potential challenges in this region.
- The company faces potential risks from geopolitical tensions, such as the war in the Middle East, which could impact macroeconomic conditions and inflation.
- There is a noted increase in consulting and advisory expenses related to corporate development initiatives, impacting the EBIT margin by 60 basis points.
Ladies and gentlemen, good day and welcome to Persistent Systems earning conference call for the fourth-quarter of FY26 ended March 31, 2026.
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. Nitish Shrivastava, Chief Technology Officer, Engineering Hyper-Productivity; Mr. Barath Narayanan, Executive Vice President, Global BFSI and Europe Geo Head; 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 from Mr. Saurabh Dwivedi. Thank you and over to you, sir.
& -
Thank you. A very good day. Good evening to all. We sincerely appreciate your presence and participation in today's call. I will quickly
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