Persistent Systems Q1 FY 2026-27 Results: Net Profit Rises 14% To ₹483 Crore, Revenue Jumps 29%; Shares Slip Despite Nagarro Deal

Persistent Systems reported a strong set of earnings for the June quarter, with double-digit growth in both profit and revenue, backed by healthy deal wins and steady demand across its key businesses. The company also announced a major acquisition during the quarter, which it believes will strengthen its position in digital engineering and artificial intelligence (AI) services.

For the quarter ended June 30, 2026, the IT services company posted a consolidated net profit of ₹483.04 crore, up 13.67% from ₹424.93 crore in the corresponding period last year.

Revenue from operations rose 29% year-on-year to ₹4,303.22 crore, compared with ₹3,333.58 crore a year ago. In US dollar terms, revenue stood at $452.4 million, registering growth of 3.8% over the previous quarter and 4.1% in constant currency.

On a sequential basis, revenue increased 6.1%, while profit declined 8.7% due to foreign exchange losses. EBIT for the quarter came in at ₹686.88 crore, while the EBIT margin eased to 16% from 16.3% in the March quarter.

Record Deal Wins Boost Order Book

The company reported its highest-ever quarterly Total Contract Value (TCV) of $1.15 billion, supported by several large client wins.

Among them was a 6.5-year strategic services agreement worth more than $650 million with a global technology company. The company's Annual Contract Value (ACV) bookings stood at $536.8 million during the quarter.

The Software, Hi-Tech and Emerging Industries business remained the company's largest revenue contributor, followed by Banking, Financial Services and Insurance (BFSI) and Healthcare & Life Sciences. North America continued to be its biggest market, contributing nearly four-fifths of the company's revenue.

Persistent Systems Nagarro Acquisition

Alongside its quarterly earnings, Persistent Systems provided an update on its proposed acquisition of Nagarro, a Frankfurt-listed digital engineering company.

The proposed transaction is valued at around €1.4 billion (about ₹15,000 crore) and is expected to create an AI-led engineering company with annual revenue of nearly $2.9 billion and a workforce of around 46,000 professionals.

The company said regulatory approvals are underway across various jurisdictions. It expects the transaction to be completed by the fourth quarter of calendar year 2026 or the first quarter of calendar year 2027, subject to approvals and customary closing conditions.

Persistent believes the acquisition will strengthen its presence in Europe, diversify its client base and expand its capabilities in AI, cloud and digital engineering services.

Management Commentary

Chief Executive Officer and Executive Director Sandeep Kalra said the company's record quarterly TCV reflected strong demand from enterprise clients and continued momentum in large transformation projects.

Commenting on the proposed Nagarro acquisition, he said the transaction aligns with Persistent's long-term strategy of expanding its engineering capabilities and strengthening its presence across global markets. He added that the company will continue investing in AI-led platforms and digital transformation services as enterprises increase spending on artificial intelligence.

Persistent Systems Share Price

Despite reporting healthy revenue growth and record deal wins, Persistent Systems shares traded lower after the earnings announcement. The stock was trading at ₹5,400, down ₹149, or 2.69%, during the session.

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