Persistent Systems Clients to Surpass $2 Billion in Revenue Following AI-Driven Tech Investment

Persistent Systems Sees AI-Driven Efficiency Gains Boosting Tech Spending

Persistent Systems, a mid-tier IT services player, has reported that clients are channeling artificial intelligence-led efficiency gains into fresh tech spending, widening its addressable market and cushioning the impact of AI-driven pricing pressure.

According to chief Financial Officer Vinit Teredesai, client conversations are shifting towards "doing more with less." Clients are either seeking more value at the same price using AI tools or reducing the bill entirely. This shift is likely to result in a bit of compression in overall revenue from IT services, but it also opens up a new addressable market.

The company has set a target of crossing $2 billion in full-year revenue by FY27, along with achieving 16-17 percent operating margin. Teredesai stated that, based on the present scenario, the company is on track to reach the targets organically. If any mergers and acquisitions are undertaken, the journey will be accelerated.

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In FY26, Persistent's revenue grew 17.4 percent year-over-year to $1.65 billion (Rs 14,748 crore). In rupee terms, revenue was up by 23.5 percent. Net profit came in at Rs 1,865 crore, growing 33.2 percent from the previous year.

Persistent Systems has also shifted its hiring strategy, opting for a just-in-time approach rather than creating a bench. This decision is likely to result in lower net headcount additions, even if the company continues to experience growth momentum of 17-20 percent in FY27.