The reported expansion comes as the IT services company records revenue growth and higher contract bookings amid enterprise demand for AI and digital engineering.
Indian IT services company Persistent Systems has reportedly opened its third facility in Hyderabad to expand its artificial intelligence (AI) and enterprise modernisation services, as demand for digital engineering and technology transformation continues to shape the sector.
According to a report by Sahi Markets dated October 13, 2026, the new facility is intended to strengthen the company's delivery capabilities and support enterprise clients adopting AI-driven technologies. However, the report noted that the facility's opening had not been independently verified.
The reported expansion would increase Persistent Systems' operational presence in Hyderabad, one of India's established technology centres, where IT companies maintain delivery operations serving domestic and international clients.
The development comes alongside growth in Persistent Systems' financial performance. The company reported consolidated revenue of ₹4,303.22 crore for the first quarter of FY27, representing a 29% increase from ₹3,333.58 crore in the corresponding quarter of the previous financial year.
Consolidated net profit rose 13.67% year-on-year to ₹483.04 crore, compared with ₹424.93 crore in Q1 FY26.
Persistent Systems also recorded a quarterly total contract value of $1.15 billion during the period, reflecting the scale of contracts secured across its business operations.
The reported Hyderabad facility is expected to support services related to AI-led engineering, enterprise technology modernisation and digital transformation. These areas involve helping organisations update existing technology systems, integrate newer digital capabilities and manage increasingly complex software environments.
For enterprise clients, AI modernisation projects can include integrating artificial intelligence into business applications, upgrading cloud infrastructure and adapting software platforms to support automated processes.
Such projects require engineering expertise, specialised delivery teams and infrastructure capable of supporting long-term technology programmes.
Hyderabad's established IT ecosystem provides access to engineering talent and technology services infrastructure, making it a location for companies expanding their delivery operations.
The reported addition of a third facility would form part of Persistent Systems' efforts to increase its capacity for enterprise technology projects. However, details concerning the facility's investment value, employee capacity, exact location and operational timeline were not provided in the report.
The development also comes as Indian IT services companies respond to changing enterprise technology requirements, particularly in areas involving generative AI, cloud computing and digital engineering.
Businesses are increasingly evaluating how AI applications can be integrated into existing systems while maintaining operational efficiency, security and compatibility with established infrastructure.
For technology service providers, these requirements create demand for specialised engineering capabilities and implementation support.
Persistent Systems' reported expansion in Hyderabad comes against this backdrop of enterprise technology investment and follows its recent quarterly growth in revenue and contract bookings.
Further details regarding the facility's scale and operational plans remain subject to confirmation from the company.
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