The Fact Sheet for the quarter and year end March 31, 2026 is as enclosed
RESULTS
▲ Positive Development
MEDIUM RISK
📅 Filed on BSE: 21 Apr 2026, 03:50 PM IST · BSE ID: 26db786d-a2d6-4550-8e31-c6d955553bd3
View Original BSE Filing (PDF)
💡
In Simple Terms
Persistent Systems reported full-year revenue of $1,654.4M, up 17.4% from last year, with strong profitability and recommended a dividend of ₹18 per share to shareholders.
🤖 AI Summary
- Persistent Systems FY26 consolidated revenue $1,654.4M, +17.4% YoY; Q4 FY26 $436.0M, +16.2% YoY
- FY26 PAT margin 13.1% (12.6% normalized), EBIT margin 15.6%; one-time labour code impact ~0.6% EBIT, ~0.5% PAT
- Board recommended final dividend ₹18/share; FY26 total dividend ₹40/share vs ₹35 in FY25
- Employee strength 27,502; 5-year revenue CAGR (FY21–FY26) 23.9%; 24 consecutive quarters of revenue growth
- Large client count (>$5M annual revenue) increased to 41 in Q4 FY26 from 40 in Q3 FY26; top 10 clients 42.0% of Q4 FY26 revenue
🔢 Key Numbers — exact figures from BSE filing, not rounded
FY26 Consolidated Revenue
$1,654.4M
+17.4%
Q4 FY26 Revenue
$436.0M
+16.2%
FY26 Revenue (INR)
₹147.5B
+23.5%
FY26 PAT Margin (Normalized)
12.6%
Final Dividend Recommended
₹18 per share
FY26 Total Dividend
₹40 per share
FY25 Total Dividend
₹35 per share
Employee Count (Mar 31, 2026)
27,502
5-Year Revenue CAGR (FY21–FY26)
23.9%
Large Client Count (>$5M annual revenue)
41 (Q4 FY26)
Top 10 Client Concentration
42.0% (Q4 FY26)
Market Capitalization (Mar 31, 2026)
$8.1B
Operating Cash Flow to PAT (FY26)
94.7%
Consecutive Quarters Revenue Growth
24 quarters
🏢 How This Affects the Company
Sustained revenue acceleration across all three industry segments (Software/Hi-Tech, Banking/Financial Services, Healthcare & Life Sciences). Large client count expanded to 41 (>$5M annual revenue threshold), indicating deepened customer relationships and diversification despite stable top-10 client concentration at 42.0% of Q4 FY26 revenue.
FY26 PAT margin at 13.1% (normalized 12.6%) reflects disciplined execution, though one-time labour code implementation cost ~0.6% EBIT and ~0.5% PAT. Operating cash flow to PAT ratio at 94.7% for FY26 demonstrates strong cash conversion. ROCE at 44.4% (Q4 FY26) and ROE at 25.0% (Q4 FY26) on trailing-twelve-month basis confirm capital efficiency.
Workforce expanded to 27,502 employees (March 31, 2026) distributed across North America (3,114), Europe (304), India (23,869), and Rest of World (215). Quarterly sequential revenue growth ranging 3.2–4.2% indicates stable capacity utilization and managed ramp.
Top 10 client concentration remains elevated at 42.0% of Q4 FY26 revenue (Q3 FY26: 42.1%), presenting client concentration risk. DSO at 80 days (Q4 FY26) versus 81 days (FY25 full year) shows stable working capital management. One-time labour code costs absorbed in FY26; recurrence on new hires remains a cost pressure.
👥 What This Means For Shareholders
✅
Action Required
Shareholders must approve final dividend ₹18/share at the ensuing Annual General Meeting; no action required if shareholding in demat form.
👤
Who Is Affected
All equity shareholders of record as on the dividend record date (post-AGM approval) will receive final dividend ₹18/share, adding to Q3 FY26 interim dividend of ₹22/share already paid, totaling ₹40/share for FY26.
🔍
Management Signal
Higher dividend payout (₹40/share vs ₹35 prior year) and sustained 17.4% YoY revenue growth reflect management confidence in sustainable cash generation and commitment to shareholder returns despite labour cost pressures.
For information only. Not investment advice. ForgeUp is not SEBI-registered.
👁 Watch List — track these upcoming events
AGM approval of final dividend ₹18/share and record date announcement for payment
Q1 FY27 results (expected August 2026) — track if revenue growth sustains above 15% YoY
Large client wins and >$5M revenue client count progression quarterly — monitor diversification trend
MEDIUM RISK
Top 10 client concentration at 42.0% of Q4 FY26 revenue poses client concentration risk. Ongoing wage inflation in India and one-time labour code costs increase operational expense pressures despite strong cash conversion.
💡 Investor Takeaway
FY26 consolidated revenue $1,654.4M (+17.4% YoY); PAT margin 13.1% (normalized 12.6% after labour code charge). Board declared final dividend ₹18/share, total FY26 dividend ₹40/share vs ₹35 prior year. Five-year CAGR 23.9% and 24 consecutive quarters revenue growth confirm sustained performance.
⚖️ Strengths & Concerns
✅ Positives
- 24 consecutive quarters of revenue growth; 5-year CAGR 23.9% (FY21–FY26) with Q4 FY26 YoY growth at 16.2%
- Operating cash flow conversion strong at 94.7% of PAT for FY26; ROCE 44.4% and ROE 25.0% (TTM basis Q4 FY26)
⚠️ Concerns
- Top 10 client concentration at 42.0% of Q4 FY26 revenue exposes earnings to single-client revenue volatility
- One-time labour code implementation cost ~0.6% EBIT and ~0.5% PAT margin in FY26; ongoing wage pressure in India
📅 Company Track Record
Persistent Systems has delivered sustained growth since IPO in 2010 (93x oversubscribed). Five-year revenue CAGR from FY21 to FY26 stands at 23.9%. Company achieved 24 consecutive quarters of sequential revenue growth. Dividend history shows progressive payout: FY25 ₹35/share, FY26 ₹40/share (recommended final ₹18/share + interim ₹22/share). Market capitalization reached $8.1B as of March 31, 2026.
Based on publicly available historical data. For context only.