Shares of Persistent Systems declined sharply by more than 3% following its fourth-quarter results for FY26, as the company reported a mixed performance with key metrics falling short of market expectations.
For the quarter ended March 31, 2026, Persistent Systems posted a net profit of ₹529 crore, registering a 20.4% quarter-on-quarter (QoQ) increase from ₹439.4 crore. However, the profit figure came in slightly below the ₹535 crore estimate from the CNBC-TV18 poll, which weighed on investor sentiment.
Revenue performance, on the other hand, remained relatively strong. The company reported revenue of ₹4,056 crore, up 7.4% QoQ from ₹3,778 crore, surpassing the poll estimate of ₹3,973 crore. In dollar terms, revenue stood at $436 million, reflecting a 3.1% QoQ rise from $423 million, though marginally below the estimated $438 million.
Operating performance showed improvement but still missed expectations. EBIT rose 21.4% QoQ to ₹659 crore from ₹543 crore, yet fell short of the projected ₹671 crore. The EBIT margin expanded to 16.3% from 14.4% in the previous quarter, but remained below the expected 16.9%.
Growth in constant currency terms also disappointed slightly, coming in at 3.4% versus the estimated 3.8%, indicating some moderation in underlying business momentum.
Despite the earnings miss, Persistent Systems reported strong deal wins during the quarter. The company recorded total contract value (TCV) of $600.8 million and annual contract value (ACV) of $445.1 million, highlighting continued demand for its services.
In a positive move for shareholders, the board recommended a final dividend of ₹18 per equity share (face value ₹5) for FY26. This takes the total dividend payout for the financial year to ₹40 per share, compared to ₹35 per share in FY25.