Persistent Systems Limited Earnings Summary — Q1 FY2027
Persistent Systems Reports Steady Q1 Growth Amid Significant Global Expansion Moves
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹4,303 Cr is 29.1% higher year-on-year.
- Revenue has compounded at 25.3% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹483 Cr is 13.7% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 20.9% annualised across the period.
- Operating margin stands at 16.2% in Q1 FY2027.
- Operating margin compressed by 216 bps year-on-year.
- Over the last two years operating margin has contracted by 44 bps.
- PBT margin is 14.5%.
- Expenses grew 32.5% against revenue growth of 29.1%.
- Operating profit of ₹697 Cr is 13.9% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 73/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 4,303 | 4,056 | 3,778 | 3,581 | 3,334 | 3,242 | 3,062 | 2,897 | 2,737 | 2,591 |
| Expenses | Improving | 3,606 | 3,288 | 3,045 | 2,898 | 2,722 | 2,658 | 2,524 | 2,416 | 2,282 | 2,136 |
| Operating Profit | Improving | 697 | 768 | 733 | 683 | 612 | 584 | 538 | 481 | 455 | 454 |
| Operating Margin | Stable | 16.2% | 18.9% | 19.4% | 19.1% | 18.4% | 18.0% | 17.6% | 16.6% | 16.6% | 17.5% |
| Other Income | Volatile | 71 | 33 | -49 | 52 | 55 | 18 | 43 | 47 | 31 | 31 |
| Interest | Improving | 29 | 19 | 19 | 18 | 17 | 18 | 16 | 18 | 14 | 10 |
| Depreciation | Improving | 115 | 109 | 101 | 100 | 94 | 79 | 82 | 75 | 71 | 80 |
| Profit Before Tax | Improving | 623 | 674 | 565 | 617 | 555 | 505 | 482 | 435 | 401 | 395 |
| Tax | Improving | 140 | 145 | 126 | 145 | 130 | 109 | 109 | 110 | 94 | 80 |
| Net Profit | Improving | 483 | 529 | 439 | 471 | 425 | 396 | 373 | 325 | 306 | 315 |
| Net Margin | Stable | 11.2% | 13.1% | 11.6% | 13.2% | 12.8% | 12.2% | 12.2% | 11.2% | 11.2% | 12.2% |
Key Takeaways
- Revenue grew by 26.4% YoY to ₹41,178 million, demonstrating robust top-line momentum.
- Standalone Net Profit saw a sequential decline of 4.3%, primarily due to higher other expenses.
- Persistent announced a massive proposed acquisition of Nagarro SE for up to €1.05 billion to scale global presence.
- Board approved a bridge financing facility of €1,400 million to fund the Nagarro acquisition.
- Expansion into Estonia was finalized through the acquisition of Concise Systems OÜ business on July 1, 2026.
- The company restated previous financial results to account for the merger with Arrka Infosec and ESOP trust consolidation.
Management Guidance
Management is shifting focus toward becoming a tier-1 global IT service provider through aggressive inorganic growth and AI-led digital engineering. The company is securing significant bridge financing to support its European expansion and scale its platform-driven engineering capabilities.
Sentiment Shift
Improving
While quarterly profit faced a slight sequential dip, the bold €1bn acquisition of Nagarro signals high management confidence in scaling to the next level of global competition.
Outlook
The company is transitioning into a large-cap contender, with the Nagarro acquisition expected to significantly alter its revenue mix and geographic footprint. Integration of AI-led platforms remains the core engineering focus.
From the Annual Report (Key Quotes)
“The Board approved the issuance of Corporate Guarantee up to EUR 1,540 million in favour of BidCo, to secure the bridge financing facility.”
“The Board approved the proposal of merger of MediaAgility India Private Limited into Persistent Systems Limited.”
“The company has entered into a Share Purchase Agreement to acquire 21% shareholding of Nagarro SE at EUR 81 per share.”
Official Quarterly Documents
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This summary is AI-generated from Persistent Systems Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.