PS

Persistent Systems

Q1 FY27

Persistent Systems Q1 FY27 earnings call: Revenue & Margins

Q1 FY27 earnings call: what management guided on revenue, margins and order book.

Price₹5,741

Market cap₹90.6K Cr

P/E45.5

Updated16 Oct 2026

Read4 min read

What the Q1 FY27 call signalled

2 of 4 strong

RevenueModerate growth

MarginMargins steady

CapexCapex planned

FundraiseFundraise planned

The short version

Persistent and Nagarro combined revenue is $2.9 billion, smaller than some peers but with significant growth potential. The acquisition is expected to be cash EPS accretive and reported EPS accretive from Year 1, excluding transaction expenses (Page 12).

From Persistent Systems's Q1 FY27 earnings-call transcript · updated 16 Oct 2026.

Revenue & Sales Performance

Moderate growth

Persistent and Nagarro combined revenue is $2.9 billion, smaller than some peers but with significant growth potential.
Nagarro's revenue has been flat recently but is expected to turnaround and grow with Persistent's management rigor and technical capabilities.
The combined entity aims to grow by mining existing clients (180+ logos with $1M+ accounts) rather than hunting new logos.
Cannibalization between Persistent and Nagarro customers is minimal (single-digit overlaps), allowing room for organic growth.
The large $650 million new deal will contribute revenue and healthy margins from Q2 onwards.
Both companies focus on AI-led digital engineering, expected to drive growth.
Persistent's historical 5-year CAGR is high at 23.9%, and they aim to bring similar growth momentum to Nagarro.

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Profitability & Margins

The acquisition is expected to be cash EPS accretive and reported EPS accretive from Year 1, excluding transaction expenses (Page 12).
Persistent aims to maintain or improve margins post-acquisition, with combined EBITDA supporting the transaction (Pages 16, 17).
Growth is driven by combining Persistent's and Nagarro's capabilities, expanding industry verticals, service lines, and geographies (Pages 14, 20).
Efforts to mine untapped potential in 180+ $1 million+ accounts to drive revenue growth (Page 21).
Persistent anticipates cost synergies to be reinvested into growth initiatives, aiming to sustain industry-leading growth (Page 17).
Large new deals secured are accretive to revenue and margins starting Q2 FY27, supporting growth momentum (Pages 25, 26).

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Capital Expenditure Plans

Capex planned

Persistent Systems is moving away from heavy CapEx models to more OpEx-oriented funding, particularly for working capital and infrastructure.
The company plans to bring the best practices from both Persistent and Nagarro to improve cash flow and manage debt servicing effectively.
Synergies and growth initiatives post-acquisition will involve investing cost savings back into growth-related and expansion initiatives.

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Fundraising & Capital Structure

Persistent Systems does not currently intend to do any Qualified Institutional Placement (QIP) or equity dilution at this point in time.
There is a commitment of bridge financing facility of €1.4 billion for the Nagarro acquisition, including refinancing of Nagarro’s existing debt if required.
Persistent Systems Ltd will provide a corporate guarantee for the €1.4 billion facility.
Interest expense on the raised debt is expected to be around 4.1% to 4.5%.
The company may consider private equity or other participation at the Nagarro asset level to deleverage, but no decisions have been made.

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Order Book & Pipeline

The transcript does not provide explicit details on the current or expected order book or pending orders for Persistent Systems Limited. However, some related points from the discussion include: - Persistent mentioned a significant new deal with $650 million in Annual Contract Value (ACV) expected to start contributing from Q2 onwards. - The company emphasized confidence in continued growth momentum despite various headwinds and tailwinds. - There is mention of a large portfolio of $1 million+ accounts (over 350 million $1M+ accounts combined between Persistent and Nagarro) with potential for mining and cross-selling.

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Persistent Systems — Quarterly revenue & net profit

Revenue Net profit

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Jun 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹4.3K Cr, net profit ₹483 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

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What Persistent Systems Ltd's management said in earlier quarters

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Frequently Asked Questions

What were Persistent Systems Q1 FY27 results?

Persistent and Nagarro combined revenue is $2.9 billion, smaller than some peers but with significant growth potential. The acquisition is expected to be cash EPS accretive and reported EPS accretive from Year 1, excluding transaction expenses (Page 12).

What is Persistent Systems share price analysis?

Persistent Systems currently shows a below-average growth signal. The stock trades at a P/E of 45.5 with a market cap of ₹90,564 Cr. Investors should review the full earnings analysis for detailed insights.

Is Persistent Systems planning capital expenditure?

Persistent Systems is moving away from heavy CapEx models to more OpEx-oriented funding, particularly for working capital and infrastructure.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.