Persistent Systems Q4FY26: Profit up 33%, dividend ₹18

Snapshot: what the company reported

Persistent Systems Ltd announced its January to March quarter (Q4FY26) results on April 21. The mid-tier IT services firm reported a consolidated net profit of ₹529 crore for the quarter ended March 31, 2026. The company also recommended a final dividend of ₹18 per equity share (face value ₹5), subject to shareholder approval at its upcoming Annual General Meeting (AGM).

The results showed sequential improvement in profit and operating margin, alongside steady deal signings. At the close, the stock ended higher on the day, reflecting a measured market reaction to numbers that were broadly in line, though with some metrics slightly below estimates.

Net profit rises sequentially and year-on-year

Persistent posted Q4FY26 net profit of ₹529 crore, up 20.4% from ₹439.4 crore in the previous quarter. On a year-on-year basis, filings cited a 33% rise versus ₹395 crore in the same quarter last year.

The reported profit came marginally below the CNBC-TV18 estimate of ₹535 crore. The sequential rise in profitability was supported by operating margin improvement, as the company delivered better profitability per rupee of revenue in the March quarter.

Revenue growth beats rupee estimates, softer in dollars

Revenue from operations rose 7.4% quarter-on-quarter to ₹4,056 crore, compared with ₹3,778 crore in the previous quarter. On a year-on-year basis, revenue rose 25% versus ₹3,242 crore in the year-ago quarter.

The rupee revenue number was ahead of the estimate of ₹3,973 crore. In dollar terms, quarterly revenue was reported at $136 million, up 3.1% sequentially, but slightly below the $138 million estimate. The company also reported constant currency revenue growth of 3.4% for the quarter, compared with an estimated 3.8%.

EBIT and margin: improvement, but below estimates

Persistent reported EBIT of ₹659 crore in Q4FY26, up from ₹543 crore in the previous quarter. EBIT was below the estimate of ₹671 crore.

EBIT margin improved to 16.3% from 14.4% in the prior quarter. However, the margin was below the 16.9% estimate. The quarter therefore delivered a clear margin step-up versus the immediately preceding period, but not enough to beat consensus expectations.

Deal momentum: TCV and ACV for the quarter

For the quarter ended March 31, 2026, Persistent disclosed total contract value (TCV) of $100.8 million. It also reported annual contract value (ACV) of $145.1 million.

These indicators matter for investors tracking booking strength and the visibility of near-term revenue conversion. While TCV and ACV do not translate one-to-one into quarterly revenue, they are often used to gauge demand conditions and pipeline quality in IT services.

Dividend: ₹18 final dividend, total ₹40 for FY26

The board recommended a final dividend of ₹18 per equity share for FY2025-26. With this recommendation, the total dividend for the full year stands at ₹40 per share, compared with ₹35 per share in the previous year.

The company stated that the final dividend is subject to shareholder approval at the 36th AGM. It also said the record date for determining eligibility will be communicated later.

How the stock moved after the results

Persistent Systems shares closed at ₹5,369, up 0.88% on the day. Over the past one month, the stock was up 13.64%. Over the last six months, it delivered a negative return of about 7%.

The mixed medium-term performance provides context to the quarterly print: near-term momentum has improved, but investors remain sensitive to growth expectations, margin trajectory, and management commentary for the next financial year.

Key numbers versus estimates

The quarter included several beats and misses against market expectations referenced in the report. Revenue in rupees came in above estimates, while profit, EBIT and margin were slightly below. Dollar revenue and constant-currency growth were also modestly under estimates.

What investors will track next

With Q4FY26 numbers out, attention typically shifts to deal conversion, pricing, and the sustainability of margins after a quarter of improvement. The company’s update that the record date for dividend eligibility will be communicated later is also relevant for shareholders planning around the payout.

In the near term, the stock’s reaction is likely to be shaped by how investors weigh the revenue beat in rupees against slightly softer operating metrics versus estimates, alongside the strength of reported TCV and ACV.

Conclusion

Persistent Systems reported Q4FY26 profit of ₹529 crore and revenue of ₹4,056 crore, alongside an improved EBIT margin of 16.3% and quarterly TCV of $100.8 million. The board recommended a ₹18 per share final dividend, taking the FY26 total to ₹40 per share. The next formal milestone for shareholders is the 36th AGM approval process, after which the company is expected to communicate the dividend record date.