Persistent Systems Ltd.AI Platform Drives 150 bps Margin Gain

Persistent Systems delivered its 23rd consecutive quarter of growth with revenues of $422.5 million, marking 17.3% year-on-year growth and 4.0% quarter-on-quarter expansion.

The company's AI platform monetization achieved a breakthrough, contributing 150 basis points to margin improvement as multiple AI-driven engagements scaled up with evolved pricing models combining people and tool-based commercials. EBIT margin stood at 14.4%, impacted by a one-time 230 basis points provision for new labor codes; excluding this, margins improved 40 basis points to 16.7%. Strong bookings momentum continued with total contract value of $674.5 million, including $369.1 million in new bookings.

The BFSI vertical led growth at 29.3% year-on-year, while top five customers grew 25.6%. Management confirmed being firmly on track toward the $2 billion revenue aspiration by March 2027, emphasizing growth focus over further margin expansion. The Board declared a 10% higher interim dividend of ₹22 per share, reflecting confidence in sustained performance.