Persistent Systems Q2FY26 Net Profit Increases 45% YoY to ₹4,714.7 Million; Migrates Aepona Group to Indian Subsidiary

Pune, India, October 14, 2025 – Persistent Systems Limited (NSE: PERSISTENT | BSE: 533179) today announced a robust financial performance for the quarter ended September 30, 2025, with consolidated net profit increasing 45% year-on-year (YoY) to ₹4,714.7 million, from ₹3,249.97 million in the second quarter of the previous year. Consequently, profit increased 10.9% to ₹4,249.36 million in Q1FY26. The company’s overall income was up 23.4% YoY at ₹36,324.96 million, while revenue from operations was at ₹35,807.20 million from ₹28,971.51 million, reflecting sustained demand for its digital engineering and software services products.

Strong Financial Growth in Q2FY26

Persistent Systems recorded robust year-on-year and quarter-on-quarter growth across major performance indicators. Operating revenue was ₹35,807.20 million, 23.6% YoY and 7.4% sequentially better. Profit before tax was ₹6,168.32 million, a 41.9% YoY increase, while net profit was up 45% YoY at ₹4,714.70 million. The company’s earnings per share rose to ₹30.31 from ₹21.19 during the same period last year, a 43.1% increase.

Employee expenses accounted for about 54% of total costs because of higher project execution and delivery. Costs of subcontracting increased to ₹5,374.86 million from ₹4,256.33 million last year, showing higher business activity.

Segment-Wise Business Performance

The company witnessed broad-based growth in all the large segments for the quarter. BFSI vertical revenue recorded a sharp increase to ₹12,455.60 million, 36.6% higher YoY, driven by work demand in cloud migration and modernization. Healthcare and Life Sciences added ₹9,027.32 million, up 11.9% YoY, and Software, Hi-Tech & Emerging Industries added ₹14,324.28 million, up 21.5% over the same period last year.

BFSI remained the largest size revenue contributor, reflecting Persistent’s domain expertise strength and customer traction in financial technology transformation efforts.

Healthy Balance Sheet and Strong Liquidity

As on September 30, 2025, Persistent Systems’ total assets stood at ₹98,900.72 million, compared to ₹87,366.02 million as of March 31, 2025. The company’s total equity grew to ₹71,474.81 million from ₹63,190.65 million during this interval. Persistent remained a debt-free firm with an adequate liquidity position of cash and cash equivalents of ₹10,008.01 million, as against ₹6,744.06 million in March 2025.

The solid balance sheet and zero-debt profile highlight the company’s financial strength and capacity to invest in growth initiatives in the long term.

Corporate Developments and Strategic Initiatives

As part of a major corporate restructuring, the Board approved the transfer of 100% shareholding in Aepona Group Limited, Ireland, by Persistent Systems Inc., USA, to Persistent Systems Limited, India. This restructuring will align the global structure of the company and bring in greater operational efficiency. After transfer, Aepona Group would be a 100% wholly owned subsidiary of the Indian parent company.

The Board also gave a final dividend payout of ₹2,345.79 million for FY25 at ₹15 per share as an affirmation of its value creation to the shareholders.

Management Commentary

Dr Anand Deshpande, Managing Director and Chairman, Persistent Systems, attributed the good performance to focused client demand and operational efficiency by the company. He observed that Persistent is investing more in innovation, digital capabilities, and long-term relationships to further boost its global market presence.

Pune-based Persistent Systems Limited is a technology services company with a worldwide presence. Providing software engineering, cloud infrastructure, and digital transformation services to industries such as BFSI, healthcare, and hi-tech, the company is headquartered in Pune. Operating in business in over 20 countries and having clients of over 2,000 international businesses, the company is rated as one of the top leaders in digital engineering services in the world.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/606f304e-7711-4bca-a876-05fa0a6e8a21.pdf

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