Persistent Systems Q4 Results Preview: Profit may jump 19% QoQ; demand outlook in focus

Persistent Systems Q4 Results Preview: Persistent Systems Limited will announce its financial results for the fourth quarter and full year ended March 31, 2026, on Tuesday, April 21. As per filing, the company will release the results on its investor relations website. It will also hold an investor and analyst conference call on the same day.

The results come at a time when mid-tier IT companies are showing stable growth. Deal wins and niche capabilities are supporting performance.

Q4 expectations: steady growth, margins flat

Add Zee Business as a Preferred Source

Zee Business estimates suggest a steady quarter. Revenue is expected to grow at a healthy pace. Margins may remain largely flat.

Revenue is likely to come at around Rs 4,023 crore. This is up 6.5 per cent from Rs 3,778 crore in Q3. Sequential growth is expected to remain stable.

EBIT is seen at about Rs 667 crore. This implies a 5.6 per cent rise from Rs 632 crore in the previous quarter. However, EBIT margin may stay almost unchanged at 16.6 per cent versus 16.7 per cent in Q3.

Net profit is expected at around Rs 524 crore. This suggests a strong 19 per cent rise on a sequential basis. The jump is mainly due to a low base in Q3, which was impacted by one-time costs.

Dollar revenue growth is expected to stay in low single digits.

What is driving the quarter

Growth is likely to be supported by BFSI and healthcare segments. These verticals continue to see steady demand for digital and cloud services.

Deal wins remain healthy. The company has been reporting strong order bookings. This provides good revenue visibility for the near term.

Currency movement may also help. A weaker rupee supports earnings for IT exporters.

Margins may see slight pressure. The December quarter is usually strong due to licensing renewals. That seasonal benefit may not be present in Q4.

Key things to watch

Management commentary on demand will be important. Investors will look for clarity on client spending trends.

Updates on the AI business will be closely tracked. The company is focusing on AI-led services. Any growth in this segment can support future revenue.

Investors will also watch deal pipeline, hiring trends, and margin outlook.

Q3 recap: profit hit by one-time costs

In Q3FY26, Persistent reported a 6.8 per cent QoQ decline in net profit at Rs 439.45 crore. In the previous quarter, profit was Rs 471.47 crore.

The decline was due to the impact of new labour codes. The company took one-time costs related to gratuity and employee benefits.

Gratuity cost was Rs 52.76 crore. Long-term compensated absence cost was Rs 36.27 crore. These costs affected profitability.

Revenue, however, remained strong. It rose 5.5 per cent QoQ to Rs 3,778.21 crore.

At the operating level, EBIT fell 7 per cent to Rs 542.75 crore. EBIT margin dropped to 14.4 per cent from 16.3 per cent.

Dollar revenue grew 4 per cent to $422.5 million. Order bookings were strong. Total contract value stood at $674.5 million. Annual contract value was $501.9 million.