Persistent Systems Limited (PERSISTENT)
₹5,741.00 -1.70% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Persistent Systems' revenue was ₹4,303 Cr (+29.1% year on year, +6.1% on the previous quarter), and net profit ₹483 Cr (+13.7% year on year); the operating margin was 16.2%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹4,303 | +29.1% | +6.1% |
| Operating profit | ₹697 | +34.6% | -9.3% |
| Net profit | ₹483 | +13.7% | -8.7% |
| EPS (₹) | 30.88 | +13.7% | -8.0% |
| Operating margin | 16.2% | — | — |
PERSISTENT delivery percentage and open interest
NSE end-of-day data for
On Fri, 16 Oct 2026, 30.37% of the PERSISTENT shares traded on NSE were taken to delivery, against the stock's own 20-session average of 39.66%. That is lower than usual for this stock. It traded 4.4 times its average daily volume. In PERSISTENT futures, open interest rose 4.69% while the futures price fell 1.57%: short buildup (new short positions). NSE's short-selling report for 15 Oct lists 21,867 PERSISTENT shares sold short, 1.64% of that day's volume.
Delivery in the last 5 sessions: 39.4% · 40.6% · 44.6% · 50.0% · 30.4%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Persistent Systems has approved the terms for raising up to ₹8,000 crore via Non-Convertible Debentures (NCDs) and up to ₹1,000 crore via Commercial Paper (CP). The proposed debt totaling up to ₹9,000 crore is intended to fund the acquisition of Nagarro SE. This represents a significant leverage shift for Persistent, which currently carries only ₹394 crore in debt against a net worth of ₹6,710 crore. Both instruments will be issued via private placement and listed on the NSE.
- Approved issuance of NCDs amounting up to ₹8,000 crore via private placement
- Approved issuance of Commercial Paper amounting up to ₹1,000 crore with tenure up to 1 year
- Debt raise is designated for financing the acquisition of Nagarro SE
- Both NCDs and CPs are proposed to be listed on the National Stock Exchange of India
Persistent Systems has approved the terms for raising up to ₹8,000 crore via Non-Convertible Debentures (NCDs) and up to ₹1,000 crore via Commercial Paper (CP). The proposed debt totaling up to ₹9,000 crore is intended to fund the acquisition of Nagarro SE. This represents a significant leverage shift for Persistent, which currently carries only ₹394 crore in debt against a net worth of ₹6,710 crore. Both instruments will be issued via private placement and listed on the NSE.
- Approved issuance of NCDs amounting up to ₹8,000 crore via private placement
- Approved issuance of Commercial Paper amounting up to ₹1,000 crore with tenure up to 1 year
- Debt raise is designated for financing the acquisition of Nagarro SE
- Both NCDs and CPs are proposed to be listed on the National Stock Exchange of India
Persistent Systems Limited has submitted the links for the presentation, fact sheet, and audio/video recordings of its investor/analyst call held on October 15, 2026. The call pertained to the company's financial performance for the quarter and half-year ended September 30, 2026. This is a procedural disclosure in compliance with SEBI LODR Regulation 30 and Regulation 46(2)(oa). No fresh financial results or operational metrics were directly detailed within this transmittal letter.
- Investor/analyst call concluded on Thursday, October 15, 2026, at 5:00 PM IST
- Pertains to financial performance for the quarter and half-year ended September 30, 2026 (Q2 FY27)
- Published web links to the Analyst Presentation, Fact Sheet, and Audio/Video recordings
- Procedural filing under SEBI LODR Regulation 30 and Regulation 46(2)(oa)
Persistent Systems Limited announced that its Board of Directors approved the audited standalone and consolidated financial statements for the quarter and half-year ended September 30, 2026, during its meeting on October 15, 2026. The filing serves as an intimation linking to the audited reports hosted on the company's website. Detailed financial tables were not included directly within this specific submission text. Investors should review the detailed result release for revenue run-rate and margin performance relative to TTM revenue of ₹15,718 Cr.
- Board approved audited financial results for the quarter and half year ended September 30, 2026
- Approval granted at the Board meeting held on October 15, 2026
- Consolidated and standalone statements made available via official website links
- Follows previous intimation reference NSE & BSE / 2026-27 / 159 dated October 15, 2026
Persistent Systems reported Q2 FY27 revenue of $487.6 million, marking a 7.8% QoQ and 20.0% YoY increase in USD terms (₹4,663.9 crore, up 30.3% YoY). EBIT came in at ₹697.72 crore with a 15.0% margin, while PAT fell 25.4% YoY to ₹351.51 crore (operating PAT stood at ₹495.15 crore). Deal wins remained solid with quarterly TCV of $633.5 million and ACV of $481.0 million. Crucially, the company secured approximately 94.04% of Nagarro's share capital and received shareholder approval for financing up to $1,250 million (up to $450 million via equity).
- Q2 FY27 revenue reached $487.6 million, up 20.0% YoY (20.8% YoY in constant currency) and 7.8% QoQ
- Net profit (PAT) stood at ₹3,515.1 million, down 25.4% YoY and 27.2% QoQ, while Operating PAT grew 5.0% YoY to ₹4,951.5 million
- Quarterly order booking reached $633.5 million in TCV and $481.0 million in ACV
- Secured ~94.04% voting rights/share capital in Nagarro, backed by approved equity and borrowing limits capped at $1,250 million
Persistent Systems reported Q2 FY27 revenue of $487.6 million (Rs 46,639 million), marking a 20.0% YoY and 7.8% QoQ growth. Operating PAT margin stood at 10.6%, impacted by exceptional Nagarro acquisition expenses of Rs 1,853.4 million (~3.1% PAT impact). For H1 FY27, revenue reached Rs 89,671.3 million (+29.7% YoY), while PAT declined 6.9% YoY to Rs 8,345.6 million due to one-off acquisition costs and forex losses. The company also disclosed signing a Business Combination Agreement with European digital engineering firm Nagarro.
- Q2 FY27 revenue rose 20.0% YoY (7.8% QoQ) to $487.6 million, reaching Rs 46,639 million.
- Reported H1 FY27 EBIT of Rs 13,846.0 million (15.4% margin) vs Rs 11,015.5 million in H1 FY26.
- Incurred exceptional expenses of Rs 1,853.4 million in H1 FY27 related to the Nagarro acquisition.
- Trailing Twelve Month (TTM) ACV bookings stood at $1,964.8 million with TTM revenue at $1,798.5 million.
- Total headcount increased to 29,598 employees with TTM attrition moderating to 11.9%.
Persistent Systems approved plans for major financing and corporate guarantees to fund the proposed acquisition of 100% of Munich-listed Nagarro SE. The Board approved long-term debt financing up to USD 1,250 million (approx. ₹10,400+ Cr) and equity/convertible fundraising up to USD 450 million (within the $1,250M envelope). Additionally, it approved a corporate guarantee of up to EUR 1,540 million to back a EUR 1,400 million bridge loan from Barclays Bank PLC. Audited H1 FY27 results and independent director reappointments were also confirmed.
- Proposed acquisition of 100% outstanding share capital of Nagarro SE, listed in Munich, Germany
- Approved debt financing via ECB, NCDs, or other instruments up to USD 1,250 million
- Approved equity/convertible fundraise (QIP, FCCB, Preferential) up to USD 450 million within the $1,250 million limit
- Issued corporate guarantee up to EUR 1,540 million backing a EUR 1,400 million bridge financing facility from Barclays Bank PLC
- Approved audited standalone and consolidated financial results for the quarter and half-year ended September 30, 2026
Persistent Systems has inaugurated its third delivery facility in Hyderabad at Phoenix Equinox, Gachibowli, expanding its existing footprint in the city where it already employs over 3,000 personnel. The dedicated center focuses on AI deployment, modernization, and cloud solutions specifically for banking, financial services, and insurance (BFSI) clients. The company currently has an overall global headcount exceeding 28,500 across 21 countries. Financial details such as capex outlays or additional seat counts were not disclosed in the filing.
- Inaugurated third facility in Hyderabad located at Phoenix Equinox in Gachibowli
- Expands capacity supporting existing workforce of over 3,000 employees in Hyderabad
- Focuses delivery on AI deployment, payments modernization, and cloud platforms for BFSI clients
- Supports broader global operations spanning 28,500+ employees across 21 countries
- Investment amount and incremental seating capacity were not disclosed
Persistent Systems has received an '[ICRA]AA+; Rating Watch with Negative Implications' credit rating from ICRA for its proposed Non-Convertible Debentures (NCDs) of ₹5,000 crore. Additionally, ICRA maintained the company's Issuer Rating at '[ICRA]AA+; Rating Watch with Negative Implications'. The proposed debt program of ₹5,000 crore is substantial compared to the company's current balance sheet debt of ₹394 crore and represents approximately 74.5% of its net worth (₹6,710 crore).
- ICRA assigned '[ICRA]AA+' with Rating Watch with Negative Implications to proposed NCDs of ₹5,000.0 crore
- Issuer Rating maintained at '[ICRA]AA+' with Rating Watch with Negative Implications
- Proposed ₹5,000 crore debt program compares against existing debt of ₹394 crore (over 12x increase if fully drawn)
- Proposed debt represents ~31.8% of TTM revenue (₹15,718 crore) and ~74.5% of net worth (₹6,710 crore)
Persistent Systems Limited announced the resignation of Dr. Rajesh Gharpure from his role as Chief Delivery Officer and Senior Management Personnel (SMP), citing personal reasons. The resignation will take effect from the close of business hours on October 14, 2026. The company stated there were no other material reasons behind his departure. Persistent Systems operates at an annualized revenue run rate of approximately Rs 15,718 Cr with 18.3% TTM operating profit margins, where operational delivery leadership plays a key role.
- Chief Delivery Officer and SMP Dr. Rajesh Gharpure tenders resignation dated October 9, 2026
- Effective resignation date set for closure of business hours on October 14, 2026 (IST)
- Resignation attributed to personal reasons with no material reasons confirmed
- Company trades at Rs 90,288 Cr market cap with TTM revenue of Rs 15,718 Cr
Persistent Systems Limited announced the resignation of Dr. Rajesh Gharpure from his role as Chief Delivery Officer and Senior Management Personnel (SMP), citing personal reasons. The resignation will take effect from the close of business hours on October 14, 2026. The company stated there were no other material reasons behind his departure. Persistent Systems operates at an annualized revenue run rate of approximately Rs 15,718 Cr with 18.3% TTM operating profit margins, where operational delivery leadership plays a key role.
- Chief Delivery Officer and SMP Dr. Rajesh Gharpure tenders resignation dated October 9, 2026
- Effective resignation date set for closure of business hours on October 14, 2026 (IST)
- Resignation attributed to personal reasons with no material reasons confirmed
- Company trades at Rs 90,288 Cr market cap with TTM revenue of Rs 15,718 Cr
Persistent Systems, via its direct German subsidiary Galaxy Germany Holding SE, has secured approximately 94.04% of the share capital and voting rights of Nagarro SE. A total of 8,903,259 Nagarro shares (71.94%) were tendered into the voluntary takeover offer, alongside a 22.10% stake secured from Lantano Beteiligungen GmbH. Having crossed the 90% threshold, Persistent plans to initiate a squeeze-out of the remaining minority shareholders to take Nagarro private. The transaction is projected to close by the end of Q1 CY27, pending remaining regulatory approvals.
- Secured approximately 94.04% of Nagarro share capital and voting rights, far surpassing the 50% plus one share minimum threshold
- A total of 8,903,259 shares tendered (71.94%), with 1,335,114 shares tendered during the statutory additional acceptance period
- Combined with 22.10% stake pre-secured via share purchase agreement with Lantano Beteiligungen GmbH
- Plans to pursue a squeeze-out of remaining minority holders; closing expected by end of Q1 CY27
Persistent Systems has secured an aggregate 94.04% shareholding in Frankfurt-listed Nagarro SE following the conclusion of the additional acceptance period on October 6, 2026. During this extended window (September 23 to October 6, 2026), the company acquired an additional 1,335,114 shares (10.79% stake). This adds to the 61.15% tendered during the initial acceptance period and 22.10% held via a share purchase agreement with Lantano Beteiligungen GmbH. Settlement remains subject to the fulfilment of certain outstanding offer conditions specified in the offer document.
- Secured 1,335,114 shares representing approximately 10.79% stake during additional acceptance period
- Total aggregate stake secured reaches approximately 94.04% of Nagarro SE's outstanding share capital
- Initial acceptance period (Aug 6 to Sep 17, 2026) yielded 61.15% stake, alongside 22.10% via Lantano Beteiligungen GmbH agreement
- Settlement remains contingent on fulfilment of outstanding offer conditions
Persistent Systems Limited has announced that it will disclose its financial results for Q2 FY27 (quarter ended September 30, 2026) on Thursday, October 15, 2026. Following the announcement, senior management, including CEO Sandeep Kalra, will host an earnings conference call at 5:00 PM IST on the same day. The company reported TTM revenue of ₹15,718 Cr and Q1 FY27 revenue of ₹4,303.2 Cr.
- Q2 FY27 financial results to be declared on Thursday, October 15, 2026
- Analyst/investor earnings call scheduled for October 15, 2026, at 5:00 PM IST
- Executive Director & CEO Sandeep Kalra and senior management will discuss quarterly performance and business outlook
Persistent Systems Limited announced that shareholders have approved an amendment to Article 12(iii) of its Articles of Association (AOA) via a special resolution. The amendment governs the further issue of shares, enabling the company to offer shares to any person for cash or non-cash consideration subject to applicable laws. This is an enabling corporate governance alteration commonly used for preferential issues, private placements, or share-swap acquisitions. The filing does not propose any immediate capital raise against its current market cap of Rs 86,392 Cr.
- Shareholders approved the amendment of Article 12(iii) of the Articles of Association with requisite majority on October 6, 2026.
- Amended clause permits further issue of shares to any persons authorised by Special Resolution.
- Shares may be offered either for cash or for consideration other than cash under applicable pricing guidelines.
- Follows earlier company intimations dated October 5, 2026, and October 6, 2026.
Financial Performance
Revenue Growth by Segment
In Q2 FY26, the Banking, Financial Services & Insurance (BFSI) segment grew 30.7% YoY, Healthcare & Life Sciences (HLS) grew 12.4% YoY, and Software, Hi-Tech & Emerging Industries grew 14.1% YoY. Total revenue reached $406.2 million (INR 3,580.72 Cr), up 17.6% YoY in USD terms and 23.6% YoY in INR terms.
Geographic Revenue Split
Persistent is heavily concentrated in North America, which contributed 79.8% of revenue in Q2 FY26. Europe contributed 9.3%, India 9.2%, and the Rest of the World (ROW) 1.7%. This concentration exposes the company to region-specific challenges in the US market.
Profitability Margins
EBIT margin reached 16.3% in Q2 FY26, a 230 basis point improvement YoY. PAT margin stood at 13.2% (INR 471.47 Cr), representing a 45.1% YoY growth in absolute profit terms. The improvement was driven by cost optimization and favorable currency movements.
EBITDA Margin
Operating profit margins (OPM) were 16.3% in FY2024 but faced pressure in H1 FY25, declining to 14.7% due to rapid ramp-ups in the HLS vertical. However, management targets a 200-300 basis point improvement in EBIT margins over the next 2-3 years through operational efficiency.
Capital Expenditure
Increased Capex on facilities and IT infrastructure impacted EBIT margins by 20 basis points in Q2 FY26. Total cash and investments stood at INR 2,495.72 Cr as of September 30, 2025.
Credit Rating & Borrowing
Persistent maintains a strong credit profile with an interest coverage ratio of 25.5x. Ratings could be downgraded if Total Debt/OPBITDA exceeds 1.25x on a sustained basis. The company maintains a low debt-to-tangible net worth ratio of 0.1x.
Operational Drivers
Raw Materials
As an IT services firm, the primary 'raw material' is human capital. Employee costs are the largest expense, with utilization rates at 88.2% in Q2 FY26 (a 50 bps decline QoQ) and TTM attrition at 11.5% in FY2024.
Import Sources
Not applicable for IT services; however, talent is primarily sourced from India (9.2% revenue contribution) and the US (79.8% revenue contribution).
Key Suppliers
Not disclosed in available documents as the business is service-oriented rather than manufacturing-based.
Capacity Expansion
The company is expanding its physical facilities and IT infrastructure, which increased depreciation and amortization by 20 basis points in Q2 FY26. Utilization is targeted at an optimum level of 83-85%.
Raw Material Costs
Employee costs are the primary driver; utilization of 88.2% and a focus on offshoring (which added 30 bps to margins in Q2 FY26) are key cost management strategies.
Manufacturing Efficiency
Efficiency is measured by employee utilization, which stood at 88.2% in Q2 FY26. The company also improved billed DSO by 2 days to 54 days, enhancing cash flow efficiency.
Strategic Growth
Expected Growth Rate
17.60%
Growth Strategy
Growth is driven by a $1.96 billion TTM Total Contract Value (TCV) and $1.39 billion Annual Contract Value (ACV). Strategy includes scaling the HLS and BFSI verticals, tuck-in acquisitions for niche capabilities, and the 'SASVA' AI platform to win deals with lower manpower costs.
Products & Services
Software engineering, IT consultancy, GenAI solutions, cloud services, and the SASVA AI platform.
Brand Portfolio
Persistent Systems, SASVA (AI Platform).
New Products/Services
The SASVA AI platform is a key new offering, enabling the company to win competitive deals by utilizing AI-driven automation to reduce project headcount.
Market Expansion
Targeting a $2 billion revenue run rate (currently at $1.6 billion annualized). Expansion is focused on deepening relationships with the top 10 clients, who contribute 43.2% of revenue.
Market Share & Ranking
Persistent is described as having a 'moderate scale' compared to large domestic IT players, which restricts its pricing flexibility.
Strategic Alliances
The company focuses on alliances and partnerships to advance its AI strategy and Asia-PAC market presence.
External Factors
Industry Trends
The industry is shifting toward GenAI adoption. Persistent is positioning itself through its SASVA platform to improve delivery efficiency and win deals against larger competitors.
Competitive Landscape
Competes in an intensely competitive IT services industry where pricing flexibility is limited by the scale of larger domestic peers.
Competitive Moat
Moat is built on niche capabilities in HLS and BFSI and its proprietary AI platform (SASVA). However, the moat is challenged by intense competition and the moderate scale of operations compared to Tier-1 IT firms.
Macro Economic Sensitivity
Highly sensitive to US macroeconomic conditions and IT spending cycles, as 80% of revenue is US-based.
Consumer Behavior
Clients are increasingly seeking cost-optimization deals and AI-integrated service delivery.
Geopolitical Risks
Exposure to regulatory and legislative changes in the US, India, and Europe. US concentration is the primary geopolitical risk factor.
Regulatory & Governance
Industry Regulations
Subject to data privacy laws, labor policies in key markets (US/India), and visa regulations for onsite employees.
Environmental Compliance
Direct exposure to environmental risks is considered 'not material' due to the service-oriented nature of the business.
Taxation Policy Impact
The effective tax rate (ETR) for Q2 FY26 was 23.5%. The company expects the FY26 ETR to remain between 22.5% and 23.5%.
Legal Contingencies
The company reported proper systems for compliance with all applicable laws; no specific high-value pending court cases were quantified in the provided documents.
Risk Analysis
Key Uncertainties
Susceptibility to demand softening in the US market and potential margin pressure from rapid onsite hiring for project ramp-ups (which recently pressured HLS margins).
Geographic Concentration Risk
79.8% of revenue is concentrated in North America (Q2 FY26).
Third Party Dependencies
Dependency on software license providers; the expiration of one such cost recently provided an 80 bps margin tailwind.
Technology Obsolescence Risk
Risk of falling behind in GenAI; mitigated by active adoption and development of the SASVA platform.
Credit & Counterparty Risk
Receivables quality is generally high, though a 50 bps impact from doubtful debt provisions was noted in Q2 FY26.
