Persistent Systems (PERSISTENT) Q4 24/25 earnings summary

Executive summary

• Achieved 20th consecutive quarter of revenue growth, with Q4 FY25 revenue at $375.2M, up 4.2% QoQ and 20.7% YoY; full-year revenue reached $1.41B, up 18.8% YoY.

• EBIT margin improved to 15.6% in Q4 and 14.7% for FY25; PAT margin at 12.2% for Q4 and 11.7% for FY25.

• Strong client growth and scaling, with top 5 customer revenue up 35.3% YoY and number of $5M+ customers rising from 40 to 55 YoY.

• Strategic focus on AI-led, platform-driven services, with continued investments in AI, capability-led acquisitions, and IP.

• Celebrated 35th anniversary, 15 years as a public company, and leadership changes including CFO joining the Board.

Financial highlights

• Q4 FY25 revenue: $375.2M (+4.2% QoQ, +20.7% YoY); FY25 revenue: $1.41B (+18.8% YoY).

• EBIT margin: 15.6% in Q4 (+70bps QoQ, +110bps YoY); FY25 EBIT margin: 14.7% (+30bps YoY).

• PAT for Q4: INR 3,957.6M (+25.5% YoY); EPS for Q4: INR 25.60 (+23% YoY).

• Full-year PAT: INR 14,001.6M (+28% YoY); EPS: INR 91.20 (+25.9% YoY).

• Total cash and investments: $270M as of March 31, 2025.

Outlook and guidance

• Confident in achieving $2B revenue by FY27, with growth expected from BFSI and tech verticals, and AI-led services.

• Margin improvement remains a priority, targeting 200-300bps increase by FY27.

• Cautious on macroeconomic and geopolitical uncertainties, but no deal cancellations observed; some delays in deal closures.

• Management highlighted a strong capital position and sufficient liquidity to support future investments.

• Continued growth expected from expanded service offerings and recent acquisitions.