• Revenue growth target: Persistent Systems achieved 3.2% quarter-on-quarter and over 17% full-year growth, maintaining its goal to reach $2 billion in revenue by FY27 primarily through organic expansion and capability-led tuck-in acquisitions.
• AI pricing pressure: AI-driven disruption is causing near-term pricing deflation of 2% to 5%, with non-regulated tech services seeing higher impact than regulated sectors like banking and healthcare.
• Q4 margin performance: EBIT margin increased from 14.4% to 16.3%, supported by the reversal of a 2.2% one-time wage code impact, 40 basis points of operational efficiency, and 60 basis points from currency tailwinds.
• Long-term margin strategy: Management aims to keep margins within the 16% to 17% band, prioritizing capability building and AI investments over aggressive margin expansion to sustain long-term growth.