Persistent Systems Share Price Falls Over 5% After Q2 FY27 Results: Revenue Rises 30.3% To ₹4,663.9 Crore As Consolidated Net Profit Falls 25.4%

Persistent Systems Limited reported consolidated revenue of ₹4,663.9 crore for Q2 FY27, up 30.3% year-on-year from ₹3,580.7 crore. Net profit declined 25.4% to ₹351.5 crore from ₹471.5 crore in the corresponding quarter last year.

Earnings before interest and tax (EBIT) increased 19.5% to ₹697.7 crore, while the EBIT margin stood at 15%. Operating PAT rose 5% year-on-year to ₹495.2 crore. Alongside its financial performance, the company reported progress in its proposed Nagarro acquisition and quarterly deal wins worth $633.5 million.

The Persistent Systems share price fell 0.98% to close at ₹5,840 on 15 October 2026 on the National Stock Exchange (NSE). In Friday's trading session on 16 October, the stock opened at ₹5,600, compared with the previous close of ₹5,840, and touched an intraday low of ₹5,492. It was last quoted at ₹5,656, down ₹184 or 3.15%, on the NSE.

Persistent Systems Q2 Results: Consolidated Financial Highlights

Revenue increased 8.4% quarter-on-quarter, while net profit fell 27.2% from ₹483 crore in Q1 FY27. EBIT rose 1.6% sequentially, but operating PAT increased only 2.5%, indicating a more modest improvement in operating earnings than in revenue.

Revenue in US dollar terms reached $487.6 million, up 20% year-on-year and 7.8% quarter-on-quarter. Constant-currency revenue growth stood at 20.8% year-on-year and 7.8% sequentially.

The company reported an operating PAT margin of 10.6% and a reported PAT margin of 7.5% for the quarter.

What Were Persistent Systems’ Key Deal Wins?

Persistent recorded quarterly order bookings of $633.5 million in total contract value (TCV) and $481 million in annual contract value (ACV).

Its new engagements included agentic AI-led mainframe modernisation for a leading hyperscaler, AI-powered customer relationship management work for a storage and moving services provider, and data and AI initiatives for a US beauty company.

The company also disclosed that shareholders had approved an equity raise of up to $450 million, with combined equity and borrowings capped at $1.25 billion, in connection with the proposed Nagarro transaction.

What Did Management Say About Business Performance?

Chief Executive Officer and Executive Director Sandeep Kalra said Persistent had recorded its 26th consecutive quarter of revenue growth, with revenue increasing 20% year-on-year in US dollar terms.

Kalra highlighted the progress made towards acquiring Nagarro, including securing approximately 94.04% of its share capital and voting rights, excluding treasury shares. He said the proposed combination aligns with the company's long-term mergers and acquisitions strategy to strengthen engineering capabilities, diversify its geographical presence and expand global delivery capabilities.

He also highlighted continued investment in artificial intelligence (AI) through the company's 3C framework and AI-driven platforms, with a focus on developing enterprise context that becomes more valuable across successive client engagements.

Why Is Persistent Systems Share Price Falling?

Strong revenue growth did little to prevent an intraday slide in the stock. The company’s September-quarter results revealed a marked drop in consolidated net profit, measured against both the year-ago quarter and the preceding quarter.

Revenue and EBIT rose. Profit, however, moved the other way. That contrast has sharpened attention on profitability and overall earnings performance. Operating margins, deal momentum and progress on the proposed Nagarro acquisition remain key areas to watch.

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