Persistent Systems Q2 earnings: Net profit rises 45%, revenue at Rs 3,580 crore

IT major Persistent Systems announced a 45.07% year-on-year rise in net profit to ₹471.4 crore for the quarter ended September 2025, up from ₹324.99 crore in the same period last year. Revenue from operations climbed 23.59% to ₹3,580 crore compared to ₹2,897.15 crore a year earlier, surpassing market expectations. The earnings were declared after market hours.

In the current session, Persistent Systems stock ended 0.12 percent lower at Rs 5324.35 against the previous close of Rs 5330.55 on BSE. Market cap of Persistent Systems stood at Rs 83,271 crore on BSE.

On NSE, the IT stock ended 0.56% lower at Rs 5299.80 today. Market cap of Persistent Systems stood at Rs 82,888 crore. 

At the operating level, earnings before interest and tax (EBIT) increased by 43.7% year-on-year to ₹583 crore, compared to ₹406.2 crore a year ago. The EBIT margin for the quarter stood at 16.3%. For the quarter ended September 2025, the company reported total contract value bookings of $609.2 million and annual contract value of $447.9 million.

Sandeep Kalra, Chief Executive Officer and Executive Director, stated, "We are pleased to report our 22nd sequential quarter of revenue growth, up 4.2% QoQ and 17.6% YoY, with operating margin improving to 16.3%. Driven by the continued trust of our clients, this performance reflects our commitment to impactful transformation and execution excellence."

Focus on AI strategy and business productivity initiatives

Persistent Systems emphasised its ongoing AI initiatives as part of its business strategy.

The company stated, "Our AI strategy builds on a strong platform-led foundation and is powered by deep domain knowledge, differentiated IPs, accelerators and strategic partnerships. This integrated approach brings together enterprise readiness for AI transformation, engineering hyper-productivity and business hyper-productivity, enabling clients to scale innovation, modernise their core and achieve measurable impact faster."

The reported results and ongoing investments in technology underscore Persistent Systems' focus on supporting clients in digital transformation and productivity enhancements.