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Persistent Systems Q2 FY27 results: net profit down 25.4% to ₹351.51 crore, revenue up 30.3%
Persistent Systems Ltd reported consolidated revenue of ₹4,664 crore in Q2 FY27, up 30.3% from a year ago, but net profit fell 25.4% to ₹351.51 crore and basic EPS declined to ₹22.42. EBITDA was ₹633.48 crore and the margin narrowed to 13.6% from 19.1% in Q2 FY26, while management cited Nagarro transaction costs and other operating pressures during the earnings call.
Key points
- Revenue rose to ₹4,664 crore in Q2 FY27 from ₹3,581 crore in Q2 FY26, a 30.3% increase, and rose 8.4% from ₹4,303 crore in Q1 FY27.
- Net profit was ₹351.51 crore, down 25.4% from ₹471.47 crore in Q2 FY26 and down 27.2% from ₹483.04 crore in Q1 FY27; basic EPS was ₹22.42.
- EBITDA fell 7.3% year on year to ₹633.48 crore, and the EBITDA margin declined to 13.6% from 19.1% in Q2 FY26 and 16.2% in Q1 FY27.
- Software, Hi-Tech and Emerging Industries revenue rose 39.2% to ₹1,994.39 crore, while Healthcare & Life Sciences revenue rose 21.6% to ₹1,098.04 crore; BFSI revenue was ₹1,571.48 crore.
- The special committee approved terms for issuing NCDs worth up to ₹8,000 crore and commercial paper worth up to ₹1,000 crore as part of long-term debt financing for the Nagarro acquisition.
How did Persistent Systems perform in Q2 FY27?
Persistent Systems reported consolidated revenue of ₹4,664 crore for Q2 FY27, up 30.3% from ₹3,581 crore in Q2 FY26 and 8.4% from ₹4,303 crore in Q1 FY27. EBITDA was ₹633.48 crore, down 7.3% from a year earlier and 9.1% from the previous quarter. The EBITDA margin fell to 13.6% from 19.1% in Q2 FY26 and 16.2% in Q1 FY27.
| ₹ crore | Q2 FY27 | Q1 FY27 | Q2 FY26 | YoY | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 4,664 | 4,303 | 3,581 | +30.3% | +8.4% |
| Other income | 24.45 | 70.64 | 51.78 | −52.8% | −65.4% |
| Total expenses | 4,235 | 3,751 | 3,016 | +40.4% | +12.9% |
| EBITDA | 633.48 | 696.89 | 683.08 | −7.3% | −9.1% |
| EBITDA margin | 13.6% | 16.2% | 19.1% | −5.5 pp | −2.6 pp |
| Profit before tax | 453.68 | 623.10 | 616.83 | −26.4% | −27.2% |
| Tax | 102.17 | 140.06 | 145.36 | −29.7% | −27.1% |
| Net profit | 351.51 | 483.04 | 471.47 | −25.4% | −27.2% |
| EPS (₹) | 22.42 | 30.88 | 30.31 | −26.0% | −27.4% |
EBITDA here is revenue from operations less operating costs (total expenses excluding finance costs and depreciation): before other income and exceptional items. Growth is shown only when both figures are positive. Source: Company's results filing (XBRL).
What changed in Persistent Systems' costs and profit?
Total expenses rose to ₹4,235 crore in Q2 FY27 from ₹3,016 crore in Q2 FY26, an increase of ₹1,219 crore or 40.4%. Employee cost increased by ₹612.24 crore or 24.7% to ₹3,096 crore, other expenses by ₹520.55 crore or 125.7% to ₹934.61 crore, and depreciation by ₹66.62 crore or 66.6% to ₹166.67 crore. Finance costs rose by ₹19.59 crore or 109.0% to ₹37.57 crore.
Other income fell to ₹24.45 crore from ₹51.78 crore in Q2 FY26, while tax expense declined to ₹102.17 crore from ₹145.36 crore. There was no exceptional item in either quarter. Profit before tax fell to ₹453.68 crore from ₹616.83 crore, and the net profit margin declined to 7.5% from 13.2%.
| ₹ crore | Q2 FY27 | Q2 FY26 | Change | Change % |
|---|---|---|---|---|
| Cost of materials | 0 | 0 | 0 | |
| Employee cost | 3,096 | 2,484 | +612.24 | +24.7% |
| Finance costs | 37.57 | 17.98 | +19.59 | +109.0% |
| Depreciation | 166.67 | 100.05 | +66.62 | +66.6% |
| Other expenses | 934.61 | 414.06 | +520.55 | +125.7% |
| Total expenses | 4,235 | 3,016 | +1,219 | +40.4% |
| Other income | 24.45 | 51.78 | −27.33 | −52.8% |
| Tax | 102.17 | 145.36 | −43.19 | −29.7% |
Source: Company's results filing (XBRL).
How did the first half of FY27 go?
In the first half of FY27, consolidated revenue rose to ₹8,967.13 crore from ₹6,914.31 crore in H1 FY26, an increase of 29.7%. Total income rose to ₹9,062.21 crore from ₹7,020.74 crore, while profit before tax fell to ₹1,076.79 crore from ₹1,172.24 crore.
Net profit for H1 FY27 was ₹834.56 crore, down 6.9% from ₹896.41 crore in H1 FY26, and EPS was ₹53.29 versus ₹57.74. The consolidated half-year figures therefore combined higher revenue with lower profit before tax and net profit.
| ₹ crore | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | 8,967 | 6,914 | +29.7% |
| Profit before tax | 1,077 | 1,172 | −8.1% |
| Net profit | 834.56 | 896.41 | −6.9% |
| EPS (₹) | 53.29 | 57.74 | −7.7% |
Source: Company's results filing (XBRL).
What do the balance sheet and cash flow show?
At 30 September 2026, total assets were ₹13,030.51 crore against ₹11,376.54 crore at 31 March 2026, while total equity was ₹8,589.43 crore against ₹7,837.85 crore. Cash and cash equivalents were ₹1,631.18 crore compared with ₹1,074.91 crore. The company reported no borrowings at either date; trade receivables were ₹3,566.16 crore against ₹3,334.39 crore and trade payables were ₹1,384.46 crore against ₹1,134.19 crore.
H1 FY27 operating cash flow was ₹928.01 crore, compared with ₹958.22 crore in H1 FY26. Investing cash flow was ₹75.36 crore against negative ₹339.27 crore, financing cash flow was negative ₹442.23 crore against negative ₹293.43 crore, and capital expenditure was ₹246.76 crore against ₹103.36 crore.
| ₹ crore | As of 30 September 2026 | As of 31 March 2026 |
|---|---|---|
| Total assets | 13,031 | 11,377 |
| Total equity | 8,589 | 7,838 |
| Borrowings | 0 | 0 |
| Cash and equivalents | 1,631 | 1,075 |
| Inventories | 0 | 0 |
| Trade receivables | 3,566 | 3,334 |
Source: Company's results filing (XBRL).
| ₹ crore | H1 FY27 | H1 FY26 |
|---|---|---|
| Cash from operations | 928.01 | 958.22 |
| Cash from investing | 75.36 | −339.27 |
| Cash from financing | −442.23 | −293.43 |
| Capital expenditure | 246.76 | 103.36 |
Source: Company's results filing (XBRL).
How has Persistent Systems done over the last 8 quarters?
Revenue rose in each of the last eight quarters, with consolidated quarterly revenue increasing from ₹3,062.28 crore in Q3 FY25 to ₹4,663.90 crore in Q2 FY27. Profit after tax reached its period high of ₹529.26 crore in Q4 FY26 before falling to ₹351.51 crore in Q2 FY27. The EBITDA margin peaked at 19.4% in Q3 FY26 and declined to 13.6% in Q2 FY27, indicating that profit and margin moved lower even as revenue continued to rise.
Which businesses drove the quarter?
Software, Hi-Tech and Emerging Industries reported revenue of ₹1,994.39 crore in Q2 FY27, up 39.2% from ₹1,432.43 crore in Q2 FY26. EBIT was ₹638.25 crore against ₹524.43 crore, with an EBIT margin of 32.0%. Healthcare & Life Sciences reported revenue of ₹1,098.04 crore, up 21.6% from ₹902.73 crore, and EBIT of ₹385.54 crore against ₹346.01 crore, with an EBIT margin of 35.1%.
BFSI reported revenue of ₹1,571.48 crore and EBIT of ₹548.91 crore in Q2 FY27, with an EBIT margin of 34.9%. Year-ago BFSI revenue and EBIT figures were not provided in the reported segment data.
| Segment | Revenue | Revenue YoY | EBIT | EBIT margin |
|---|---|---|---|---|
| BFSI | 1,571 | 548.91 | 34.9% | |
| Healthcare & Life Sciences | 1,098 | +21.6% | 385.54 | 35.1% |
| Software, Hi-Tech and Emerging Industries | 1,994 | +39.2% | 638.25 | 32.0% |
Source: Company's results filing (XBRL segment data).
What else did the company announce?
The special committee of the board approved terms on 16 October 2026 for issuing non-convertible debentures through private placement of up to ₹8,000 crore and commercial paper through private placement of up to ₹1,000 crore. The filings stated that the debt instruments form part of long-term financing for the acquisition of Nagarro SE. The NCDs and commercial paper are intended to be listed on the National Stock Exchange of India, while the commercial paper will be unsecured and have a tenor of up to one year from allotment.
What did Persistent Systems' management say?
Management said the medium-term EBIT margin aspiration of 16-17% was maintained, while clarifying that it was not formal forward guidance. Management also said about $50M of one-time Nagarro transaction costs are expected over the next 3-4 quarters, with about $25-30M incremental over the next two quarters. The Nagarro acquisition was targeted for closure in Q4 CY26 or Q1 CY27, subject to RBI and Austria/Spain FDI approvals.
How did Persistent Systems shares react?
The filing was released after market hours. The stock was down 0.9% five minutes after the filing appeared, down 0.3% after 15 minutes and down 0.4% after 30 minutes. On the reaction day, the stock fell 1.7% from the previous close; by the next day's close it was down 2.6% from that pre-results close, and by five sessions it was up 0.2%.
On the reaction day, the median move for the Computers - Software & Consulting industry was up 1.4%, while the Nifty Midcap 150 was down 0.1%. Persistent Systems therefore underperformed the sector median by 3.1 percentage points on the reaction day. Earlier results-day reactions included gains of 0.7% on 2 August 2026, 8.0% on 14 October 2025 and 10.9% on 22 January 2025, alongside declines of 5.6% on 21 April 2026 and 7.6% on 23 July 2025.
| After the filing | Stock | Computers - Software & Consulting median |
|---|---|---|
| 5 minutes | −0.9% | |
| 15 minutes | −0.3% | |
| 30 minutes | −0.4% | |
| Reaction day | −1.7% | +1.4% |
| Next day | −2.6% | +0.0% |
| 5 days | +0.2% | −4.2% |
Minutes are measured from the price when the filing appeared; days from the previous close. Source: MarketPing price-reaction measurement.
| Results filed on | Stock on the reaction day |
|---|---|
| 2 August 2026 | +0.7% |
| 21 April 2026 | −5.6% |
| 20 January 2026 | −1.4% |
| 14 October 2025 | +8.0% |
| 23 July 2025 | −7.6% |
| 24 April 2025 | −0.3% |
| 22 January 2025 | +10.9% |
| 22 October 2024 | +10.4% |
Source: MarketPing price-reaction measurement.
How did other Computers - Software & Consulting companies do?
Among 33 other Computers - Software & Consulting companies that filed this quarter, the median revenue growth was 12.9%. Persistent Systems’ 30.3% revenue growth was higher than the peer median; 28 peers grew more slowly than the company and 5 grew faster. Of the 32 peers for which profit was compared, 21 reported higher profit.
| Persistent Systems revenue growth (YoY) | +30.3% |
|---|---|
| Median of 33 other Computers - Software & Consulting companies | +12.9% |
| Companies with slower revenue growth than Persistent Systems | 28 of 33 |
| Companies with faster revenue growth than Persistent Systems | 5 of 33 |
| Companies whose net profit rose | 21 of 32 |
Source: Filed results (XBRL) of the industry's companies.
Quick answers
What was Persistent Systems' revenue in Q2 FY27?
Revenue from operations was ₹4,664 crore, up 30.3% from ₹3,581 crore in Q2 FY26 (consolidated).
Did Persistent Systems make a profit in Q2 FY27?
Yes. Net profit was ₹351.51 crore, against a net profit of ₹471.47 crore in Q2 FY26.
What was Persistent Systems' EPS in Q2 FY27?
Basic earnings per share were ₹22.42, against ₹30.31 in Q2 FY26.
How did Persistent Systems shares react to the Q2 FY27 results?
On the reaction day the stock moved −1.7% from the previous close; the median Computers - Software & Consulting stock moved +1.4%.
When did Persistent Systems announce its Q2 FY27 results?
On 15 October 2026, in a filing to the BSE.
Sources
- Board Meeting Outcome for Outcome Of The Board Meeting Held On October 14, 2026, And Concluded On October 15, 2026 (BSE, 15 October 2026) · PDF
- Financial Results As Of September 30, 2026 (BSE, 15 October 2026) · PDF
- Announcement under Regulation 30 (LODR)-Investor Presentation (BSE, 15 October 2026) · PDF
- Audited Financial Statements For The Quarter And Half Year Ended September 30, 2026 (BSE, 15 October 2026) · PDF
- The earnings call (15 October 2026)
How this was written: every figure in the tables and charts is calculated from the company’s filed results (XBRL) and MarketPing’s price measurements. The text is drafted with AI from those figures and the filings, and a checker removes any sentence carrying a number it cannot trace to them. How we write these.
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