- Persistent Systems reported a net profit of ₹483 crore for Q1 FY27, which is a 9% sequential decline despite a 29% increase in revenue year-on-year.
- The company's revenue for Q1 FY27 reached ₹4,303 crore, marking a 29.1% increase from the same quarter last year.
- Persistent achieved a revenue of $452.4 million in Q1 FY27, which is a 16.1% year-on-year growth.
- Record deal wins were reported with a total contract value (TCV) of $1.15 billion during the quarter.
- Operating performance softened with earnings before interest and tax (EBIT) declining 12% quarter-on-quarter to ₹581.5 crore.
- Persistent's EBIT margin stood at 13.5%, down from 16.2% in the preceding quarter.
Persistent Systems reported a net profit of ₹483 crore for Q1 FY27, an 8.7% decline from the previous quarter, despite a 29.1% revenue increase to ₹4,303 crore. The company achieved a record total contract value (TCV) of $1.15 billion, marking its 25th consecutive quarter of revenue growth.1236
CEO Sandeep Kalra noted that the revenue growth was driven by strong client spending and deal momentum, with a 3.8% sequential growth and 16.1% year-on-year growth. The EBIT margin fell to 16.0%, down from 16.2% in the previous quarter, reflecting operational challenges.458
The company signed a Business Combination Agreement with Nagarro, a European digital engineering firm, to enhance its capabilities and geographic reach. This transaction is expected to close in Q4 CY2026 or Q1 CY2027, pending regulatory approvals.
Kalra emphasized the importance of scaling artificial intelligence across enterprises, stating, “The differentiator will not be the model itself, but the ability to create a unified ‘Enterprise Context’ from business logic, data, and enterprise experience.”
The company also reported a decrease in attrition rate to 12.3% and added 1,138 employees in the quarter, bringing total headcount to 28,640.
“Persistent's record quarterly TCV of $1.15 billion included a 6.5-year strategic services agreement worth over $650 million with a leading global technology company. Persistent also signed a Business Combination Agreement with Nagarro, a Europe-based digital engineering company listed on the Frankfurt Stock Exchange, expected to close in Q4 CY2026 or Q1 CY2027.”
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