PersistentSystems on Thursday, October 15, reported a 5% year-on-year increase in consolidated profit after tax (PAT), excluding exceptional expenses, to ₹495.15 crore in Q2 FY27. Reported PAT fell 25.4% to ₹351.51 crore, after the company booked an exceptional expense of ₹185.34 crore related to its proposed acquisition of Nagarro.
Revenue from operations grew 20.8% year-on-year in constant currency terms, while revenue in rupee terms rose 30.3% to ₹4,663.9 crore. In US dollar terms, revenue increased 20% to $487.6 million.
Sequentially, revenue grew 8.4% in rupee terms and 7.8% in US dollar terms, marking the company’s 26th consecutive quarter of revenue growth.
The company’s reported consolidated PAT, however, fell 25.4% year-on-year to ₹351.51 crore, after accounting for exceptional expenses of ₹185.34 crore related to the proposed acquisition of Nagarro. Earnings per share declined 26% to ₹22.40.
Earnings before interest and tax (EBIT) rose 19.5% year-on-year to ₹697.72 crore, but the EBIT margin narrowed to 15% from 16.3% a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 26.4% to ₹864.4 crore, with the EBITDA margin at 18.5%, compared with 19.1% in Q2 FY26.
Persistent Systems Q2: Segment performance
Persistent reported growth across all three of its industry segments. Revenue from Software, Hi-Tech and Emerging Industries rose 28.5% year-on-year to $208.5 million. Banking, Financial Services and Insurance (BFSI) revenue increased 16.2% to $164.3 million, while Healthcare and Life Sciences revenue grew 12% to $114.8 million.
The Software, Hi-Tech and Emerging Industries segment accounted for 42.8% of revenue in Q2 FY27, followed by BFSI at 33.7% and Healthcare and Life Sciences at 23.5%. North America contributed 81.4% of revenue, while Europe accounted for 7.1% and India 9.2%.
Deal wins and client additions
Persistent reported trailing 12-month total contract value (TCV) bookings of $3.06 billion and annual contract value (ACV) bookings of $1.96 billion. Quarterly TCV bookings stood at $633.5 million, while quarterly ACV bookings were $481 million.
The company had 60 clients generating more than $5 million in annual revenue in Q2 FY27, unchanged from the previous quarter. Its total number of clients generating more than $1 million in trailing 12-month revenue rose to 218 from 214 in Q1 FY27.
Nagarro acquisition update
Persistent said it had secured approximately 94.04% of Nagarro’s share capital and voting rights, excluding treasury shares, as part of its proposed acquisition. The company expects the transaction to close in Q4 calendar year 2026 or Q1 calendar year 2027, subject to regulatory approvals from the Reserve Bank of India and foreign investment authorities in Austria and Spain.
The company also said shareholders had approved an equity raise of up to $450 million, with combined equity and borrowings capped at $1.25 billion, to support the transaction.
Shares of Persistent Systems closed about 1% lower at ₹5,840 ahead of the result announcement on Thursday. The stock has declined 7% so far in 2026.