Persistent Systems LimitedQ2FY27 Results & Financial Update
Persistent Systems Limited: Q2FY27 consolidated results and company financials – revenue ₹4,663.90 Cr, PAT ₹351.51 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Persistent Systems Q2FY27 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
Persistent Systems reported its 26th sequential quarter of revenue growth for Q2 FY27, achieving USD 487.6 million in quarterly revenue, representing a 7.8% increase sequentially and 20.0% growth year-over-year.
Expressed in Indian rupees, revenue from operations reached ₹46,639.0 million, marking an 8.4% quarter-over-quarter and 30.3% year-over-year increase.
Reported Profit After Tax (PAT) for the quarter stood at ₹3,515.1 million, registering a decline compared to ₹4,830.4 million in Q1 FY27 and ₹4,714.7 million in Q2 FY26. This contraction was driven by exceptional expenses of ₹1,853.4 million related to the Nagarro acquisition.
Operating profitability remained resilient, with EBITDA expanding to ₹8,644.0 million (an 18.5% margin) and EBIT standing at ₹6,977.2 million (a 15.0% margin).
Order bookings remained robust during the quarter, with Total Contract Value (TCV) bookings reaching $633.5 million and Annual Contract Value (ACV) bookings touching $481.0 million.
Strategic execution during the quarter focused heavily on advancing the voluntary public takeover offer for Nagarro, securing approximately 94.04% of its share capital and voting rights (excluding treasury shares) as of the extended acceptance period.
01 · Business model
What does Persistent Systems do?
Persistent Systems Limited is a global services and solutions company specializing in AI-led, platform-driven Digital Engineering and Enterprise Modernization across multiple industry verticals. The company employs over 29,500 professionals across 21 countries.
Its primary revenue engines are structured across three core segments: Software, Hi-Tech & Emerging Industries, Banking, Financial Services & Insurance (BFSI), and Healthcare & Life Sciences. Operations span product and platform engineering, data and artificial intelligence, cloud-enabled enterprise modernization, and agentic business automation.
Persistent derives the vast majority of its revenue from international markets, predominantly North America, supported by a scalable global delivery model centred around delivery hubs in India and international offices.
02 · Historical context
What shaped the business before this quarter
Since inception in 1990, Persistent has evolved through successive strategic orbits, transitioning from outsourced product development to digital transformation and, from 2024 onwards, entering its sixth orbit centered on AI-led, platform-driven services.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹4,663.90 Cr | ₹4,303.23 Cr |
| EBITDA | ₹697.72 Cr | — |
| Profit after tax | ₹351.51 Cr | ₹483.04 Cr |
| EBITDA margin | 15.00% | — |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Software, Hi-Tech & Emerging Industries generated $208.5 million (up 28.5% YoY), BFSI contributed $164.3 million (up 16.2% YoY), and Healthcare & Life Sciences delivered $114.8 million (up 12.0% YoY).
The company maintained 60 enterprise clients with annual revenue exceeding $5 million. Revenue concentration among the top 10 clients increased to 46.8% from 43.0% in Q1 FY27.
What drove margins
Total direct costs for Q2 FY27 rose to ₹30,898.7 million, representing 66.3% of sales compared to 64.9% in Q1 FY27, leading to a moderation in gross profit margin to 33.7%.
Total SG&A expenses remained flat sequentially at ₹7,096.4 million, dropping as a percentage of sales to 15.2% from 16.5% in the preceding quarter.
05 · Demand, customers & order book
Where demand is coming from
Order booking for the quarter ended September 30, 2026, totaled $633.5 million in Total Contract Value (TCV) and $481.0 million in Annual Contract Value (ACV).
The total number of clients generating $1 million+ in annual revenue reached 218, including 4 clients in the $75M+ bracket and 9 clients in the $20M–$50M bracket.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Software, Hi-Tech & Emerging Industries accounted for 42.8% of Q2 FY27 revenue, BFSI accounted for 33.7%, and Healthcare & Life Sciences represented 23.5%.
Geography and market mix
North America contributed 81.4% of revenue in Q2 FY27, India accounted for 9.2%, Europe represented 7.1%, and the Rest of the World (ROW) contributed 2.3%.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Total employee headcount reached 29,598 as of September 30, 2026, including 27,814 technical personnel. Utilization including trainees stood at 85.8%.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Persistent secured approximately 94.04% of Nagarro's share capital and voting rights (excluding treasury shares) following the initial and additional acceptance periods, with plans to execute a squeeze-out of remaining minority shareholders upon closing.
The company continued scaling its 3C framework (Core, Context, Coordination) and proprietary accelerators such as Sasva, GenAIHub, and iAura to drive enterprise AI adoption and software delivery hyper-productivity.
09 · Reported developments
What changed operationally
Persistent received five awards at the ISG Provider Lens Awards 2026 and was named Growth Honor of the Year by Everest Group for the second consecutive year.
10 · Pressure points & risks
What is not going smoothly
Reported net profit and EPS experienced a sequential and year-over-year contraction due to ₹1,853.4 million in exceptional transaction expenses associated with the Nagarro acquisition.
11 · Items worth noticing
The line items that can distort a quick read
The company recorded exceptional expenses of ₹1,853.4 million during Q2 FY27 in connection with the Nagarro acquisition, creating a ~3.1% negative impact on PAT for the quarter.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Days Sales Outstanding (DSO) improved significantly to 50 days of billed receivables (down from 61 days in Q1 FY27), with unbilled days standing at 24, bringing total DSO to 74 days.
Capital allocation & funding
At the Extraordinary General Meeting, shareholders approved an equity raise of up to USD 450 million, capping combined equity and borrowings at USD 1,250 million to fund the Nagarro combination and replace the initial €1.4 billion bridge loan.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
Harvard Business Impact Case Study
Persistent's AI-enabled talent supply chain and Fulfillment-as-a-Service model were featured in an Indian School of Business (ISB) case study published by Harvard Business Impact.
14 · Previous-quarter changes
What changed since the previous quarter
Quarterly revenue growth accelerated to 7.8% in dollar terms (USD 487.6 million) compared to 3.8% in Q1 FY27, maintaining an uninterrupted sequence of 26 quarters of sequential growth.
15 · Key Q&A
The quarter, answered directly
What does Persistent Systems do?
Persistent Systems Limited is a global services and solutions company specializing in AI-led, platform-driven Digital Engineering and Enterprise Modernization across multiple industry verticals. The company employs over 29,500 professionals across 21 countries.
What is the clearest takeaway from Q2FY27?
Persistent Systems reported its 26th sequential quarter of revenue growth for Q2 FY27, achieving USD 487.6 million in quarterly revenue, representing a 7.8% increase sequentially and 20.0% growth year-over-year.
What drove revenue or demand?
Software, Hi-Tech & Emerging Industries generated $208.5 million (up 28.5% YoY), BFSI contributed $164.3 million (up 16.2% YoY), and Healthcare & Life Sciences delivered $114.8 million (up 12.0% YoY).
What mattered most for margins or profitability?
Total direct costs for Q2 FY27 rose to ₹30,898.7 million, representing 66.3% of sales compared to 64.9% in Q1 FY27, leading to a moderation in gross profit margin to 33.7%.
What changed operationally beyond the headline numbers?
Total employee headcount reached 29,598 as of September 30, 2026, including 27,814 technical personnel. Utilization including trainees stood at 85.8%.
What are the main pressure points disclosed for the quarter?
Reported net profit and EPS experienced a sequential and year-over-year contraction due to ₹1,853.4 million in exceptional transaction expenses associated with the Nagarro acquisition.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Nagarro Transaction Closing: Monitor the formal completion of the Nagarro acquisition, receipt of remaining regulatory approvals from RBI and FDI authorities in Austria and Spain, and the execution of the planned squeeze-out.
- 02
Integration and Synergy Realization: Track the progress of the equity raise (up to USD 450 million via QIP/FCCBs) and the replacement of bridge financing, alongside the realization of cash EPS accretion and operational synergies.
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