Persistent Systems Shares Surge 3.5% Pre-Open on Stellar Q2 Profit Jump

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Persistent Systems reported a strong Q2 FY26 with net profit soaring 45% YoY to ₹471 crore and revenue rising 23.5% to ₹3,580 crore. Improved margins, robust order book, and strategic AI initiatives fueled optimism, pushing shares up 3.5% in pre-open trade on October 15.

Persistent Systems Shines with Impressive Q2 Earnings, Shares Gain Pre-Open

Persistent Systems Ltd, a leading IT services company, posted a remarkable performance for the quarter ending September 30, 2025. The company’s consolidated net profit jumped 45% year-on-year to ₹471.4 crore, beating analyst expectations comfortably. Revenue increased 23.5% YoY and 7.3% QoQ to ₹3,580.7 crore, underlining robust business momentum across key verticals like BFSI, software, and healthcare.

The company’s operating profit (EBIT) jumped 43.7% YoY to ₹583 crore with an expanded margin of 16.3%, compared to 15.7% analysts had predicted. Dollar revenue also rose 17.6% YoY to $406.2 million. Persistent’s strong Total Contract Value (TCV) stood at $609.2 million, and Annual Contract Value (ACV) at $447.9 million.

CEO Sandeep Kalra highlighted the company’s AI-driven platform approach combining domain expertise, intellectual property, and partnerships to enable clients’ digital transformation, productivity, and innovation scalability. Persistent’s strong market wins and talent leadership were also recognized by industry groups including Everest Group.

Major Takeaways and Notable Highlights

Net Profit: ₹471.4 crore for Q2 FY26, 45% YoY growth, beating estimates.

Revenue: ₹3,580.7 crore (+23.5% YoY, +7.3% QoQ), driven by BFSI and emerging sectors.

Operating Margins: Expands to 16.3% from 15.7% estimated, showing cost efficiency improvements.

Order Book: TCV at $609.2 million and ACV at $447.9 million reflect solid pipeline and recurring business.

AI Strategy: Platform-led AI model blending proprietary tools and partnerships driving client outcomes and business growth.

Market Reaction: Shares jumped 3.5% in pre-open trade on October 15, reflecting strong investor confidence.

Conclusion

Persistent Systems continues its growth trajectory with robust financial and operational performance. The company’s strategic investments in AI and client-centric innovation have enhanced profitability and market position. The positive market response underscores investor confidence in the company’s long-term growth potential amidst a competitive IT landscape.

Sources: Economic Times, Moneycontrol, CNBC-TV18, Business Today