Persistent Systems (PERSISTENT) Q1 26/27 earnings summary

Executive summary

• Achieved 25th consecutive quarter of revenue growth, with Q1 FY27 revenue up 3.8% QoQ and 16.1% YoY, and EBIT margin at 16.0%.

• Consolidated revenue from operations for Q1 FY27 was ₹43,032.27 million, up from ₹33,335.87 million year-over-year and ₹40,559.37 million sequentially.

• Net profit for the quarter was ₹4,830.43 million, compared to ₹4,249.36 million in Q1 FY26 and ₹5,292.60 million in Q4 FY26.

• Record quarterly TCV of $1.15B, including a 6.5-year, $650M+ strategic agreement with a global tech company.

• Signed a Business Combination Agreement with Nagarro to create a ~$2.9B revenue run rate and 46,000+ professionals globally.

• The Board approved a major acquisition of Nagarro SE to strengthen the European footprint and diversify the global IT services platform.

• Continued investment in AI-driven platforms and the 3C framework to drive enterprise transformation.

Financial highlights

• Q1 FY27 revenue: $452.4M (+3.8% QoQ, +16.1% YoY); EBIT: $6,868.8M (+4.2% QoQ, +32.7% YoY); PAT: $4,830.4M (-8.7% QoQ, +13.7% YoY).

• Total income for the quarter was ₹43,738.63 million, up from ₹33,882.49 million year-over-year.

• EBITDA (segment results before depreciation, finance costs, and unallocable expenses) was ₹15,270.80 million, up from ₹11,827.06 million year-over-year.

• Basic EPS for the quarter was ₹30.88, up from ₹27.43 year-over-year; diluted EPS was ₹30.51.

• Final dividend declared at ₹22.00 per share, total dividend for the year at ₹40.00 per share.

• TTM revenue: $1,717.1M (+16.8% YoY); TTM EBIT: $157,180.9M (+31.2% YoY); TTM PAT: $24,725.3M (+26.6% YoY).

• TTM ACV bookings: $1,931.7M; TTM TCV bookings: $3,030.7M.

• Gross margin stable at ~35%; EBIT margin at 16.0%; PAT margin at 11.2%.

Outlook and guidance

• Expect continued growth driven by AI-led, platform-driven services and expanded global footprint post-Nagarro combination.

• The proposed Nagarro SE acquisition is expected to enhance scale and diversify the business, subject to regulatory and shareholder approvals.

• Focus on scaling AI adoption, deepening client relationships, and leveraging strategic partnerships.

• No explicit forward-looking financial guidance provided, but management highlights strategic expansion in Europe.