Persistent Systems LimitedQ1 FY27 Results & Financial Update
Persistent Systems Limited: Q1 FY27 consolidated results and company financials – revenue ₹4,303.23 Cr, PAT ₹483.04 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
Quarter at a glanceReported figures and period changes.Changes compare like-for-like reported periods where available.
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Quarterly Results AnalysisExplore Persistent Systems Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Achieved quarterly revenue of US$452.4 million, representing a 3.8% quarter-on-quarter and 16.1% year-on-year growth (4.1% QoQ and 16.5% YoY in constant currency), marking the 25th sequential quarter of revenue growth.
EBIT margin for Q1 FY27 came in at 16.0%, reflecting a 50 bps year-on-year increase. PAT for the quarter was ₹4,830.4 million (11.2% margin), declining 8.7% QoQ due to forex losses.
Reported highest-ever quarterly Total Contract Value (TCV) of US$1.146 billion, with new bookings TCV at US$952.2 million, driven largely by a US$650 million+ strategic services agreement.
Business combination agreement with Nagarro signed in late June 2025/2026 timeframe to create an AI-led global engineering powerhouse with over €1 billion revenue run rate; open offer document submitted to BaFin.
01 · Business model
What does Persistent Systems do?
Persistent Systems is a digital engineering and enterprise-modernisation company. Its work sits across software engineering, cloud, data, AI and industry-specific technology programs for global clients.
For this type of business, quarterly revenue is only one part of the picture. Contract bookings, deal duration, delivery mix, employee capacity and currency movements can all affect the relationship between revenue, EBIT and net profit.
02 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q1 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹4,303.23 Cr | ₹3,333.59 Cr | ₹4,055.94 Cr |
| EBIT | ₹686.88 Cr | ₹517.81 Cr | ₹659.16 Cr |
| Profit before tax | ₹623.10 Cr | ₹555.41 Cr | ₹673.98 Cr |
| Profit after tax | ₹483.04 Cr | ₹424.94 Cr | ₹529.26 Cr |
| EBIT margin | 16.00% | 15.50% | 16.30% |
03 · Why it moved
Why the quarter looked the way it did
What drove revenue
The company marked its 25th sequential quarter of revenue growth.
What drove margins
EBIT margin declined 30 bps QoQ due to a 60 bps headwind from lower utilization and net 20 bps direct cost headwind, partially offset by 30 bps favorable currency movement and 20 bps from lower doubtful debt provisions.
Purchase costs increased due to ongoing investments in AI-led tools and seasonal consumption of tool cycles to support engineering productivity and deal delivery.
Gross wage hike impact for Q2 FY27 is expected to be in the range of 180 to 200 basis points, with a portion expected to be recouped via operational efficiencies.
04 · Demand, customers & order book
Where demand is coming from
Secured a US$650 million+ TCV deal over 6.5 years from a US-headquartered global technology leader encompassing product development, support, and cloud operations.
Won a US$50 million+ renewal plus expansion deal with a leading global insurance claims management and outsourcing services provider to manage and modernize over 250 applications.
Q1 year-on-year growth was led by Healthcare & Life Sciences at 16.4%, BFSI at 16.3%, and Software, Hi-Tech & Emerging verticals at 15.7%.
05 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Total headcount stood at 28,640 at the end of Q1 FY27, representing an increase of 1,138 employees from the previous quarter.
Trailing 12-months attrition stood at 12.3%, down from 13.0% in the previous quarter, remaining within the comfortable operating range of 12-15%.
Rolled out global wage hikes to all eligible employees effective July 1, 2026, in line with the annual wage hike cycle.
06 · Reported developments
What changed operationally
Customers in the US$10 million+ category increased from 22 to 32, US$5 million+ increased from 56 to 60, and US$1 million+ increased from 191 to 214 over the year.
Top 5 customer revenue grew by 21.2% year-on-year, top 10 by 19.1%, top 20 by 15.8%, top 50 by 17.1%, and top 100 by 17.4%.
Expanded AI intellectual property portfolio to 139 patent filings, including 18 new filings during the quarter.
07 · Pressure points & risks
What is not going smoothly
Reported foreign exchange loss of ₹1,052.7 million during Q1 FY27 primarily due to rupee volatility causing outstanding receivables to be revalued at lower rates as of June 30, 2026.
Utilization decreased by 150 basis points sequentially to 86.5%, reflecting proactive hiring to support the expected ramp-up of large deals.
Operating cash flow to PAT ratio declined to 24.2% in Q1 FY27 compared to 77% in the previous quarter due to delayed collections ($23 million) and delayed tax refunds ($10 million).
08 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Total cash and investments stood at ₹27,044.3 million as of June 30, 2026.
Billed DSO stood at 61 days (increase of 8 days QoQ) and unbilled DSO stood at 25 days (decrease of 2 days QoQ).
Adjusting for delayed collections ($23 million collected in early July) and tax refunds ($10 million, with $7 million received in early Q2), adjusted OCF to PAT for Q1 would have been 83.2%.
09 · Management guidance & targets
What management is targeting from here
Management aspires to maintain operating margins in the 16% to 17% range for the fiscal year.
Expects closure of the Nagarro transaction by Q4 CY26 or at max by Q1 CY27.
10 · Management call deep dive
What management said on the conference call
Operating takeaways
14 key pointsSecured a US$650 million+ TCV deal over 6.5 years from a US-headquartered global technology leader encompassing product development, support, and cloud operations.
Won a US$50 million+ renewal plus expansion deal with a leading global insurance claims management and outsourcing services provider to manage and modernize over 250 applications.
Q1 year-on-year growth was led by Healthcare & Life Sciences at 16.4%, BFSI at 16.3%, and Software, Hi-Tech & Emerging verticals at 15.7%.
Total headcount stood at 28,640 at the end of Q1 FY27, representing an increase of 1,138 employees from the previous quarter.
Trailing 12-months attrition stood at 12.3%, down from 13.0% in the previous quarter, remaining within the comfortable operating range of 12-15%.
Rolled out global wage hikes to all eligible employees effective July 1, 2026, in line with the annual wage hike cycle.
EBIT margin declined 30 bps QoQ due to a 60 bps headwind from lower utilization and net 20 bps direct cost headwind, partially offset by 30 bps favorable currency movement and 20 bps from lower doubtful debt provisions.
Purchase costs increased due to ongoing investments in AI-led tools and seasonal consumption of tool cycles to support engineering productivity and deal delivery.
Gross wage hike impact for Q2 FY27 is expected to be in the range of 180 to 200 basis points, with a portion expected to be recouped via operational efficiencies.
Total cash and investments stood at ₹27,044.3 million as of June 30, 2026.
Billed DSO stood at 61 days (increase of 8 days QoQ) and unbilled DSO stood at 25 days (decrease of 2 days QoQ).
Adjusting for delayed collections ($23 million collected in early July) and tax refunds ($10 million, with $7 million received in early Q2), adjusted OCF to PAT for Q1 would have been 83.2%.
Management aspires to maintain operating margins in the 16% to 17% range for the fiscal year.
Expects closure of the Nagarro transaction by Q4 CY26 or at max by Q1 CY27.
Important analyst Q&A
3 key pointsManagement clarified that India revenue growth includes billing through US parent GCCs as global customers shift procurement to India, alongside steady growth in North America.
The US$650 million TCV deal has already started contributing; 75%-80% of peak revenue is expected to be achieved shortly with no major additional hiring required.
Management emphasized that value creation stems from building the 'Enterprise Context' via the 3C Architecture (Core, Context, Coordination) across platforms like SASVA, GenAIHub, and iAURA.
11 · Key Q&A
The quarter, answered directly
What does Persistent Systems do?
Persistent Systems is a digital engineering and enterprise-modernisation company. Its work sits across software engineering, cloud, data, AI and industry-specific technology programs for global clients.
What is the clearest takeaway from Q1 FY27?
Achieved quarterly revenue of US$452.4 million, representing a 3.8% quarter-on-quarter and 16.1% year-on-year growth (4.1% QoQ and 16.5% YoY in constant currency), marking the 25th sequential quarter of revenue growth.
What drove revenue or demand?
The company marked its 25th sequential quarter of revenue growth.
What mattered most for margins or profitability?
EBIT margin declined 30 bps QoQ due to a 60 bps headwind from lower utilization and net 20 bps direct cost headwind, partially offset by 30 bps favorable currency movement and 20 bps from lower doubtful debt provisions.
What changed operationally beyond the headline numbers?
Total headcount stood at 28,640 at the end of Q1 FY27, representing an increase of 1,138 employees from the previous quarter.
What is management guiding or targeting from here?
Management aspires to maintain operating margins in the 16% to 17% range for the fiscal year.
12 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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13 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
How much of the record TCV converts into revenue in later quarters; TCV is a booking measure, not immediate revenue.
- 02
Whether forex continues to create a gap between EBIT growth and PBT/PAT movement.
- 03
Subsequent disclosures relating to the Nagarro transaction and integration timetable.
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