Persistent Systems shares surge 4% on ₹15 dividend, Q4 profit rises 25%

Shares of Persistent Systems Ltd. surged over 4% on Thursday, April 24, after the company reported better-than-expected Q4FY25 results. The stock touched an intraday high of ₹5,387.50, rising 4.1% from the previous close of ₹5,173.20 on the NSE on Thursday. The stock is currently trading at ₹5,261.50.

Investor sentiment was buoyed by a 25% year-on-year jump in March quarter net profit to ₹395.76 crore and a ₹15 per share dividend announcement. Despite Thursday’s rally, the stock remains down 16.5% year-to-date.

The IT firm reported a consolidated net profit of ₹395.76 crore for Q4FY25, marking a 25.5% year-on-year increase from ₹315.32 crore in the same quarter last year. On a quarterly basis, profit rose 6.1% from ₹372.9 crore in Q3FY25.

Revenue from operations surged 25% YoY to ₹3,242.1 crore, up from ₹2,592.5 crore in Q4FY24. On a quarter-on-quarter (QoQ) basis, revenue rose 5.9% from ₹3,062.2 crore. EBIT for the quarter stood at ₹505.2 crore, up 11% from ₹455.73 crore in Q3FY25 and 35% YoY. The EBIT margin improved 70 basis points sequentially to 15.6%, compared to 14.9% in the December quarter and 14.5% in Q4FY24.

The company has reaffirmed its goal of achieving $2 billion in annual revenue by FY27, with Kalra stating that the company is making steady progress toward the target.

“We are proud to have delivered our 20th sequential quarter of revenue growth, with an EBIT margin of 15.6%. As we look ahead, we are optimistic about sustaining progress to reach $2 billion in annual revenue by FY27. Our strategic pivot to AI-led platform-driven services will drive this growth, fuelled by continued rigor and innovation,” said Persistent CEO and executive director Sandeep Kalra in a statement.

Total Contract Value (TCV) for the quarter came in at $517.5 million, down from $594.1 million in Q3FY25, but up from $447.7 million a year ago. The net new TCV stood at $329 million versus $333.6 million in the previous quarter. Annual Contract Value (ACV) for Q4FY25 was reported at $350.2 million.

Persistent Systems’ performance stood out against peers, with the company posting higher sequential growth than players like LTIMindtree.

Alongside its Q4FY25 results, the Board of Directors declared a final dividend of ₹15 per equity share (face value ₹5) for the financial year ended March 31, 2025. This takes the total dividend for FY25 to ₹35 per share, marking the company’s 35th anniversary.

The record date for determining eligible shareholders for the final dividend will be announced in due course, the company said in a filing to the stock exchanges.