Persistent Systems Reports Q3 Profit Growth Amid Labour Code Impact and AI-Driven Margins

Persistent Systems reported Q3 FY26 results with a 17.8% year-on-year net profit increase to Rs 439 crore and 23% revenue growth to Rs 3,778 crore. Sequential profit declined 6.8% due to one-time impacts from new labour codes and wage hikes. The company achieved a 16.7% EBIT margin excluding these impacts, supported by AI-driven tools and strong demand in BFSI, data, and cloud services. Brokerages remain optimistic, citing sustained growth and AI-led margin expansion, though some note valuation concerns and margin sustainability.