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Persistent Systems Ltd

| Quarterly Financial Results Q3 FY 2025–26

NEUTRAL SENTIMENT

Report Source

⬤20th Jan 26

Summary : Persistent Systems reported strong Q3 FY26 results, declared interim dividend, and restructured for efficiency, managing new Labour Code impacts.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Q3 FY26 Total expenses: 31,646.84 Million
  2. Key expenses (Consolidated Q3 FY26): Employee benefits (20,408.56 Million), Subcontracting costs (5,597.35 Million), Other expenses (4,445.49 Million)
  3. Exceptional Item (Statutory impact of new Labour Code): 890.25 Million
  4. Consolidated Q3 FY26 Revenue from operations: 37,782.05 Million
  5. Segment-wise (Consolidated Q3 FY26): BFSI (13,213.17 Million), Healthcare & Life Sciences (9,604.67 Million), Software, Hi-Tech and Emerging Industries (14,964.21 Million)
  6. Consolidated Total assets (as at Dec 31, 2025): 109,067.47 Million
  7. Paid-up equity share capital (Consolidated Dec 31, 2025): 788.75 Million
  8. Other equity (Consolidated March 31, 2025): 62,411.40 Million
  9. ESOP Trust and subsidiaries are related parties
  10. Both standalone and consolidated results are presented
  11. Consolidated results include 23 subsidiaries and one controlled trust
  12. Standalone results include an ESOP trust, now consolidated

Corporate Overview

  1. India
  2. Ireland
  3. Germany
  4. France
  5. Malaysia
  6. Mexico
  7. Israel
  8. Switzerland
  9. Australia
  10. Romania
  11. Costa Rica
  12. Poland
  13. UAE (new branch office)
  14. Statutory impact of new Labour Codes on employee benefits
  15. IT services
  16. Software development
  17. Digital transformation
  18. Factual and reporting on board decisions and financial outcomes
  19. Enterprises in BFSI, Healthcare, and Technology sectors
  20. Banking, Financial Services and Insurance (BFSI)
  21. Healthcare & Life Sciences
  22. Software, Hi-Tech and Emerging Industries
  23. Established a new branch office in Abu Dhabi, UAE
  24. Group restructuring for entity rationalization and operational efficiency

Risk Factors

  1. New Labour Codes impact employee benefits.
  2. Integration challenges from recent acquisitions.
  3. Reliance on other auditors for subsidiaries.
  4. Potential for future regulatory changes.

Key Drivers

  1. Strong revenue and profit growth.
  2. Strategic restructuring for group efficiency.
  3. Interim dividend declared for shareholders.
  4. New branch office in Abu Dhabi.

Auditor’s Report

  1. Unmodified audit opinion for both consolidated and standalone financial results

Board Commentary

  1. Interim dividend of INR 22 per Equity Share declared for FY 2025-26
  2. Statutory impact of new Labour Codes
  3. Government of India notified four new Labour Codes
  4. Merger of CAPIOT Software Private Limited sanctioned by NCLT
  5. Issuance of 1,100,000 Equity Shares to PSPL ESOP Management Trust
  6. Increase in paid-up share capital due to ESOP allotment

Corporate Governance

  1. Audit Committee
  2. Stakeholders Relationship and ESG Committee

Management Discussion & Analysis

Future Strategy

  1. Streamlining group structure for entity rationalization and operational efficiency

Operational Focus Areas

  1. Managing regulatory changes from new Labour Codes

Performance Drivers

  1. Strong revenue growth across segments

Risk Control Measures

  1. Monitoring finalization of Labour Code rules for appropriate accounting effect

Critical Risks

  1. Financial impact from new Labour Codes on employee benefits
Persistent Systems Ltd (PERSISTENT) Quarterly Report Analysis & Insights | Dhanarthi