Stock Report

Persistent Systems Reports Strong Q1 FY27 Results: Revenue Up 16.1% YoY to $452.4 Million; Consolidated Net Profit Reaches ₹483.04 Crore

Posted On : 2026-08-02 19:58:15( TIMEZONE : IST )

Global IT services and digital engineering leader Persistent Systems Limited (BSE: 533179 | NSE: PERSISTENT) announced its audited financial results for the first quarter ended June 30, 2026 (Q1 FY27), following approval by its Board of Directors.

The company registered steady top-line growth driven by international demand, reporting a consolidated revenue of $452.4 million and a consolidated profit after tax (PAT) of ₹483.04 crore (₹4,830.43 million).

Consolidated Revenue Highlights

Persistent Systems maintained sustained business momentum across both US Dollar and Indian Rupee metrics:

Dollar Revenue: Consolidated revenue for the quarter reached $452.4 million, representing a 3.8% sequential (QoQ) growth and a 16.1% year-on-year (YoY) increase.

Constant Currency Growth: Revenue in constant currency terms grew 4.1% QoQ and 16.5% YoY.

Rupee Revenue: Consolidated revenue from operations stood at ₹4,303.23 crore (₹43,032.27 million), posting a growth of 6.1% QoQ and 29.1% YoY compared to ₹3,333.59 crore (₹33,335.87 million) in Q1 FY26.

Total Income: Total consolidated income, including other income of ₹70.64 crore (₹706.36 million), rose to ₹4,373.86 crore (₹43,738.63 million), up from ₹4,089.43 crore in Q4 FY26 and ₹3,388.25 crore in Q1 FY26.

Profitability and Margins Analysis

Operating efficiency yielded robust growth in earnings before interest and tax (EBIT), though bottom-line margins were sequentially impacted by foreign exchange variations:

EBIT Performance: Operating profit (EBIT) stood at ₹686.88 crore (₹6,868.80 million) with an EBIT margin of 16.0%. EBIT grew 4.2% QoQ and 32.7% YoY.

Profit Before Tax (PBT): Consolidated PBT was recorded at ₹623.10 crore (₹6,231.01 million), reflecting a PBT margin of 14.5%. This marks a 12.2% YoY growth over ₹555.41 crore in Q1 FY26, but a 7.5% QoQ decline from ₹673.98 crore in Q4 FY26, primarily due to foreign exchange losses.

Profit After Tax (PAT): Net profit for the quarter came in at ₹483.04 crore (₹4,830.43 million), representing a PAT margin of 11.2%. Consolidated net earnings expanded 13.7% YoY compared to ₹424.94 crore in Q1 FY26, while declining 8.7% QoQ from ₹529.26 crore in Q4 FY26 on account of forex impact.

Total Comprehensive Income: Total comprehensive income for the quarter jumped significantly to ₹586.20 crore (₹5,861.97 million), boosted by positive cash flow hedge movements.

Operating Expenditure Breakdown (Consolidated)

Total consolidated expenses for Q1 FY27 reached ₹3,750.76 crore (₹37,507.62 million), compared to ₹3,415.45 crore in Q4 FY26 and ₹2,832.84 crore in Q1 FY26. Major cost components included:

Employee Benefits Expense: Reached ₹2,198.81 crore (₹21,988.07 million), up from ₹2,136.45 crore in Q4 FY26 and ₹1,826.14 crore in Q1 FY26.

Subcontracting Costs: Stood at ₹667.16 crore (₹6,671.61 million), compared to ₹621.81 crore in Q4 FY26.

Other Expenses: Increased to ₹740.36 crore (₹7,403.64 million), against ₹529.97 crore in Q4 FY26 and ₹416.28 crore in Q1 FY26.

Depreciation & Amortization: Stood at ₹115.29 crore (₹1,152.87 million).

Finance Costs: Accounted for ₹29.14 crore (₹291.43 million).

Standalone Financial Results Summary

On a standalone basis, Persistent Systems Limited reported:

Revenue from Operations: Stood at ₹4,117.80 crore (₹41,178.01 million), up 4.0% QoQ from ₹3,958.42 crore and 26.4% YoY from ₹3,258.08 crore.

Total Income: Reached ₹4,167.75 crore (₹41,677.47 million).

Profit Before Tax: Recorded at ₹545.87 crore (₹5,458.71 million), compared to ₹570.07 crore in Q4 FY26 and ₹492.67 crore in Q1 FY26.

Net Profit (PAT): Came in at ₹402.02 crore (₹4,020.24 million), compared to ₹420.16 crore in Q4 FY26 and ₹367.29 crore in Q1 FY26.

Share Capital & Earnings Per Share

Paid-Up Equity Capital: Consolidated paid-up equity share capital remained steady at ₹78.88 crore (₹788.75 million).

Other Equity: Total other equity as of the latest consolidated balance sheet stood at ₹7,758.98 crore (₹77,589.80 million).

Consolidated Earnings Per Share (EPS): Basic EPS for Q1 FY27 stood at ₹30.88 (not annualised), compared to ₹33.83 in Q4 FY26 and ₹27.43 in Q1 FY26. Diluted EPS was ₹30.51.

First Quarter FY27 Client Wins and Outcomes

The order booking for the quarter ended on June 30, 2026, was $1,146.2 million in Total Contract Value (TCV) and $536.8 million in Annual Contract Value (ACV).

Sandeep Kalra, Chief Executive Officer and Executive Director, Persistent "We marked our 25th sequential quarter of revenue growth to begin FY27, delivering 3.8% quarter-over-quarter and 16.1% year-over-year revenue growth, along with an EBIT margin of 16.0%.

This performance was underpinned by a record quarterly Total Contract Value (TCV) of $1.15 billion, reflecting continued momentum in larger client engagements, including a 6.5-year strategic services agreement with a leading global technology company with a TCV of more than $650 million.

We signed a Business Combination Agreement with Nagarro, a leading European digital engineering company listed on the Frankfurt Stock Exchange. This transaction is in line with the M&A strategy we have consistently outlined to strengthen our capabilities and expand our geographic footprint and industry coverage.

As enterprises increasingly look to scale AI across their businesses, we believe the differentiator will not be the model itself, but the ability to create a unified Enterprise Context from business logic, data and enterprise experience embedded across the organization. We continue to invest in this capability through our 3C framework, AI-driven platforms, helping clients build more Intelligent Enterprises, reshape their operating models and realize greater value from AI.

We thank our clients, partners, employees and shareholders for their continued trust and support as we continue to strengthen Persistent for the opportunities ahead."