Results reported 15 October 2026 | IT services | Consolidated
The Quick Take
Persistent Systems’ Q2 FY27 revenue rose 30% year on year to Rs 4,663.9 cr, or about 20% in dollar terms. Reported PAT fell 25% to Rs 351.5 cr, after Rs 185.34 cr of Nagarro acquisition-related expenses. Operating PAT was Rs 495 cr, up 2.5% QoQ.
Q2 FY27 snapshot (consolidated, Rs crore)
| Metric | Q2 FY27 | Comparison |
|---|---|---|
| Revenue (INR) | 4,663.9 | +30.3% YoY; +8.4% QoQ |
| Revenue (USD) | $487.6M | +20.0% YoY |
| EBIT (margin) | 697.7 (15.0%) | Q1: 686.9 (16.0%) |
| Reported PAT | 351.5 | -25.4% YoY (Q2 FY26: 471.5) |
| Operating PAT (margin) | 495.2 (10.6%) | +2.5% QoQ |
Bookings
Q2 total contract value was $633.5M and annual contract value $481.0M, down from the record Q1 TCV of $1,146.2M.
Nagarro and financing
Persistent holds about 94% of Nagarro. Shareholders approved an equity raise of up to $450M for the acquisition, with combined equity and borrowings capped at $1,250M.
Management commentary
The CEO said the company continues to strengthen its AI capabilities through its 3C framework and AI-driven platforms. The company gave no explicit guidance in the release. A broker note targets an operating margin of 16 to 17% for FY27, and wage revisions from Q2 could pressure margins.
Risks
- Integration and financing of Nagarro.
- Margin pressure from wage hikes.
- Lumpy bookings after the Q1 record.
Setup
Neutral. Revenue growth is strong and reported profit is down on one-offs. Margin recovery and Nagarro integration are the swing factors.
This is educational analysis, not personalized investment advice. Do your own research before investing.
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