Persistent Systems has begun monetising its proprietary AI tools and, for the first time, has highlighted this segment in the company’s quarterly results. The company is offering a pricing model that combines its SASVA, iAURA, and GenAI products with personnel to assist customers in deploying these tools.
“Our products have a first-mover advantage due to their maturity level. We can monetise these with our customers and reap the benefits. This has positively impacted our margins this quarter.
While this trend has been present for some time, we emphasised it this quarter as it became more apparent,” said Vinit Teredesai, Executive Director and CFO of Persistent Systems.
Improving Profit Margins
Customer engagements involving AI tools and platforms are increasing, and commercial agreements with customers are evolving, he said. The company signed several deals in the last quarter, which are now scaling up and contributing to a 150 basis point improvement in margins for the third quarter of FY26, Teredesai noted.
The AI capabilities were tested internally before being rolled out for clients, who are experiencing productivity gains. “The share of AI-led deployments is currently at a low single-digit percentage, but every bit contributes directly to our bottom line,” he added. As these numbers grow, they are expected to enhance both revenue and margins.
Persistent has filed 55 patents in the AI space. It is no longer merely a proof of concept; actual implementation and monetisation are underway, leading to meaningful contributions, according to the CFO.
The AI platform and tools have primarily been adopted in high-tech, banking, financial, and healthcare sectors, but they are gaining acceptance across industries. “Customers are paying us because they see tangible benefits in productivity,” Teredesai stated.
Flexible Pricing Models
“We can sell some of these tools to our customers on a perpetual basis, making it a very high-margin business for us,” he explained. For those who prefer not to invest in a perpetual license, there is an option to embed AI into service rates and be charged over time.
Customers are also looking to integrate these tools as part of their solutions, aiming to achieve more with fewer resources.
In Q3 FY26, Persistent’s order bookings were at $ 674.5 million in Total Contract Value (TCV) and $501.9 million in Annual Contract Value (ACV).
Key achievements included scaling an AI-led digital commerce product with SASVA, implementing AI-driven case management for a global edtech leader, re-architecting payroll and human capital management (HCM) platforms using SASVA and iAURA to expedite post-acquisition integration, reduce technical debt, and enable scalable innovation for a global fintech and insurance leader, as well as developing iAURA-led data operations for a leading French multinational bank.