Persistent Systems Limited — Q4 FY26 earnings call

the $2 billion by FY27, that's a run rate. We are marching towards it steadily... we are confident, we are marching towards it steadily and we'll get there plus minus a quarter at worst.

Clarifies the nature and confidence level of a key long-term financial target, indicating strong commitment despite macro uncertainties.

Asked by Bhavik Mehta

our top 5 accounts have 2 financial services accounts, 1 tech, 1 healthcare life sciences... when you do larger deals, when you work with larger customers, you also promise them cost savings. And as a part of that, there is offshoring that we do over a period of time. So, I would not be reading anything much into it. And from a company perspective, we have fairly strong relationships with each of these and they have scaled very nicely. So, nothing to worry about.

Addresses concerns about softness in top accounts, attributing it to normal deal dynamics (cost savings, offshoring) rather than client issues, reassuring investors about client relationships.

Asked by Abhishek Pathak

the Headless 360, while it gives the customers the options to use the agents from anywhere through the APIs and so on, it also increases the work. And not every customer is that tech savvy to be able to take advantage of these without having the help from an SI. So, we are pretty closely working with Salesforce.

Discusses a potential industry shift towards platform-led solutions and management's view on how System Integrators remain relevant by supporting less tech-savvy clients.

Asked by Abhishek Pathak

we play in the same ecosystem and some of our larger customers are where we share the customers with a few other strategic Tier ones as well... we have been able to grow in the same set of accounts despite the headwinds that all of us have faced. And so, to that extent, you know, that also shows the strength of the offering, the strength of the relationship. I won't read too much into that from our perspective.

Reassures that Persistent is maintaining growth in healthcare despite broader industry headwinds and peer weakness, highlighting the strength of its offerings and relationships.

Asked by Prateek Maheshwari

The India part is an aberration. The thing that happened there is one of our IT customers in our erstwhile Accelerite business, the renewal happened in rupee (INR) terms through their GCC. So that basically had to be since it was billed in GCC and rupee (INR) terms that had to be classified as India revenue... will get corrected in the next quarter... Europe is concerned, that's an area where we want to double down. And there are some customer puts and takes that happen. And that is what it is. So that was a decline of 1.8% sequentially.

Explains unusual geographical growth patterns, clarifying that India's strong growth was an accounting anomaly and Europe's decline is due to specific client dynamics, with plans to address it.

Asked by Prateek Maheshwari

as far as SaaS-pocalypse is concerned, there is, that's an opportunity for people like us. If we can partner with the PEs and their portfolio companies and improve their margins by using our platforms like SASVA, whether we use our open source LLMs tuned by us or we use Anthropics of this world and otherwise, it's a very big opportunity.

Highlights how Persistent views a potential industry challenge (SaaS apocalypse) as an opportunity for its platform-led approach and partnerships with private equity firms to drive margin improvement.

Asked by Girish Pai

if we use technology, we should be able to do more work with lesser people and more technology. That's the entire promise of Al. And with that, it should not be margin decretive. So, don't worry about the margin going down. It will be the same or better as we use more of this technology to deliver to others.

Addresses concerns about potential margin erosion from using third-party AI tools, emphasizing that productivity gains from AI will maintain or improve margins.

Asked by Kumar Rakesh

We may see compression in the tech world. And even if that happens to the extent that we will also go and cannibalize our own business, there's enough and more business that is there from a time perspective and we are a very, very small company. At $1.7 billion, roughly we are very, very small in this and there is enough new outsourcing that may happen from these tech companies... So far, yes. We have been able to deliver more value and get more in return.

Acknowledges the risk of AI-driven cannibalization but frames it as a manageable challenge given the large market, new outsourcing opportunities, and Persistent's ability to add value and deliver more with less.

Asked by Nitin Padmanabhan