Persistent Systems Q3 results: Net profit declines 7% QoQ to ₹439 crore, interim dividend declared

In the quarter-ago period, the mid-tier IT company had clocked a profit of ₹471.47 crore, it said in a regulatory filing.

Its bottom line was impacted by the implementation of the new labour codes. The one-time incremental impact, consisting of gratuity of ₹52.76 crore (or ₹527.59 million) and long-term compensated absences of ₹36.27 crore (₹362.66 million), primarily arising due to a change in wage definition, affected its profitability.

The technology company’s revenue from operations, however, soared 5.5% sequentially to ₹3,778.21 crore during the quarter under review, compared to ₹3,580.72 crore in the second quarter of FY26.

At an operational level, its EBIT (earnings before interest and tax), also known as operating profit, declined 7% QoQ to stand at ₹542.75 crore in the December quarter of FY26, as against ₹583.74 crore in the previous quarter.

Its EBIT margin contracted to 14.4% for the reporting quarter, from 16.3% in Q2FY26.

Its dollar revenue grew 4% sequentially to $422.5 million in the third quarter of the current fiscal year from $406.2 million.

The IT firm’s order booking for the quarter ended on December 31, 2025, was $674.5 million in Total Contract Value (TCV) and $501.9 million in Annual Contract Value (ACV).

Board declares dividend

The company’s board of directors at its meeting also approved the payment of an interim dividend of ₹22 per equity share with a face value of ₹5 each for FY26.

It also fixed January 27, 2026, as the record date for the same.

What the CEO said

Commenting on the earnings, Sandeep Kalra, Chief Executive Officer 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. This was accompanied by an EBIT margin of 16.7%, excluding a one-time impact of ~2.3% arising from the New Labour Codes. In line with this performance, we are declaring an interim dividend of ₹22 per share.”

He stated that the company’s performance reflects a “deeper role in strategic client programs and sustained demand for data, cloud, and digital engineering across our core industries.”

Kalra added that the firm is also applying Agentic AI within its own operations, as a ‘customer zero’ to improve productivity and speed adoption at scale.

“As we move ahead, our priority remains sustaining growth through consistent execution as demand continues to shift toward larger, more complex engagements,” Kalrea said.