Persistent Systems Limited – Investor Presentation Summary

Key Operational Highlights

  • 28,640 total employees as of June 30, 2026, with 26,905 technical staff
  • 86.5% utilization rate including trainees (down from 88.0% in Q4 FY26)
  • 12.3% TTM attrition rate (improved from 13.0% in Q4 FY26)
  • 84.8% of delivery workforce located in India, 15.2% in global delivery centers
  • 9,450+ AI/ML/GenAI external certifications and 24,850+ partner certifications

Key drivers of operational performance: Strong client engagements across verticals, investments in AI capabilities, and global delivery expansion.

Segment-wise Performance

  • Banking, Financial Services & Insurance: 34.0% of revenue (vs 34.5% in Q4 FY26)
  • Healthcare & Life Sciences: 25.3% of revenue (vs 26.3% in Q4 FY26)
  • Software, Hi-Tech & Emerging Industries: 40.7% of revenue (vs 39.2% in Q4 FY26)

Explanation of significant changes in segment performance: Software, Hi-Tech & Emerging Industries segment showed increased contribution driven by strong demand from technology companies.

Financial Highlights

Revenue: ₹43,032.3M ($452.4M at 1 USD = INR 94.66)

EBITDA: ₹8,021.6M (18.6% margin)

PAT: ₹4,830.4M (11.2% margin)

EPS: ₹30.9

Margins: Gross Profit Margin 35.1%, EBIT Margin 16.0%, PAT Margin 11.2%

YoY/QoQ comparison: Revenue up 29.1% YoY (16.1% in USD terms) and 6.1% QoQ; PAT up 13.7% YoY but down 8.7% QoQ

Drivers of financial performance: Strong revenue growth offset by foreign exchange loss of ₹1,052.7M in Q1 FY27 vs gain of ₹11.9M in Q4 FY26

Key Risks: Foreign exchange volatility, intense competition in IT services, client concentration, wage inflation in India

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

  • North America: 79.1% of revenue
  • Europe: 8.5% of revenue
  • India: 9.8% of revenue
  • Rest of World: 2.6% of revenue

Balance Sheet Snapshot

Net Worth: ₹84,171.4M as of June 30, 2026 (vs ₹78,378.6M as of March 31, 2026)

Cash and Investments: ₹27,044.3M as of June 30, 2026 (vs ₹27,622.1M as of March 31, 2026)

Non-Current Liabilities: ₹7,851.4M as of June 30, 2026 (vs ₹6,144.3M as of March 31, 2026)

Current Liabilities: ₹28,619.9M as of June 30, 2026 (vs ₹29,242.5M as of March 31, 2026)

Financial Health Insights: Strong cash position with ₹27,044.3M in cash and investments, improved net worth growth

Capex & Cash Flow Health

Capital Expenditure: Not Specified

Days Sales Outstanding: 61 days billed, 25 days unbilled

Operating Cash Flow to PAT%: Not Specified

Investment Rationale: Focus on AI capabilities, digital engineering, and strategic acquisitions

Strategic & R&D Initiatives

Investments in Innovation: 3C framework for AI investments, AI-driven platforms, strategic partnerships

Expected impact on growth: Positioning as "Ecosystem Orchestrator of Choice" for enterprise AI transformation

Strategic Rationale: Expanding geographic footprint and industry coverage through Nagarro combination

Industry Trends & Business Environment

Macro/Industry Trends: Enterprises scaling AI across businesses, focus on creating unified Enterprise Context

Impact on Company: Driving demand for AI-led digital engineering and enterprise modernization services

Management Commentary & Growth Outlook

Strategic Outlook: "We marked our 25th sequential quarter of revenue growth to begin FY27, delivering 3.8% quarter-over-quarter and 16.1% year-over-year revenue growth, along with an EBIT margin of 16.0%" - Sandeep Kalra, CEO

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Foreign exchange volatility, ability to manage growth, intense competition

ESG Updates

Environment: Maintained carbon neutrality for Scope 1 and 2 emissions for third consecutive year; targeting net zero by FY50; 99.6% renewable energy in India-owned offices; 100% wastewater recycling

Social Responsibility: Impacted 61,837 lives through CSR programs; 9,488 volunteers participated in ISR activities

Governance: 97.3% employees completed annual Code of Conduct training; zero tolerance for unethical behavior

Diversity: 29.7% women in workforce; targeting 35% by FY40; 62 nationalities represented

M&A Activity

Business Combination Agreement with Nagarro: Expected to create ~$2.9B revenue run rate company with 46,000+ professionals; more balanced geographic mix (62% North America, 22% Europe, 16% RoW); expected closing by Q4 CY26/Q1 CY27

Awards and Recognitions

  • Leader in ISG Provider Lens® Digital Engineering Services and Salesforce Ecosystem Partners reports
  • Included in Dow Jones Best-in-Class World Index and S&P Global Sustainability Yearbook 2026
  • Multiple HR awards including ET Future Skills Awards 2026 and CII Award for Excellence in Disability Inclusion
  • Top honors in Extel's 2026 Asia Executive Team Survey for third consecutive year