Persistent Systems slips after Q2 PAT slides 27.2% QoQ
In US dollar terms, revenue increased 20% YoY and 7.8% QoQ to $487.6 million. The company reported order bookings of $633.5 million in total contract value (TCV) and $481 million in annual contract value (ACV) for the quarter ended 30 September 2026.
Profit before tax stood at Rs 453.7 crore in Q2 FY27, down 27.2% vs the previous quarter and 26.4% vs the year-ago quarter. EBITDA increased 26.4% YoY and 7.8% QoQ to Rs 864.4 crore. EBIT rose 19.5% YoY and 1.6% QoQ to Rs 697.7 crore. The EBIT margin stood at 15.0% in Q2 FY27.
Gross profit increased 22.2% YoY to Rs 1,574 crore from Rs 1,288.3 crore. Total direct costs rose 34.8% YoY to Rs 3,089.9 crore. Selling and marketing expenses increased 20.3% to Rs 345.2 crore, while administrative and other expenses rose 14.7% to Rs 364.4 crore.
The company reported an exceptional expense of Rs 185.3 crore related to the proposed Nagarro acquisition. Other income and exchange losses also weighed on profit during the quarter. Other income stood at a loss of Rs 13.1 crore, compared with income of Rs 58.9 crore in Q2 FY26, while exchange loss amounted to Rs 45.6 crore, against an exchange gain of Rs 27.2 crore a year earlier.
Chief executive officer and executive director Sandeep Kalra said the company recorded its 26th consecutive quarter of revenue growth. He highlighted progress on the proposed Nagarro acquisition, including securing approximately 94.04% of its share capital and voting rights, excluding treasury shares. Shareholders also approved an equity raise of up to $450 million, with combined equity and borrowings capped at $1.25 billion.
Kalra said the proposed acquisition is intended to strengthen engineering capabilities, diversify geographic presence and expand global delivery capabilities. He also highlighted continued investment in AI capabilities and platforms.
Persistent Systems is a global digital engineering and enterprise modernisation company offering AI-led solutions across software engineering, product development, data analytics, cloud computing and business automation. It employs over 29,500 people across 21 countries.
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