Persistent Systems Q2 FY27 Results: Consolidated Net Profit ₹352 Crore on Total Income of ₹4,688 Crore
Earnings
IT Services
Blacklitt Research3 min read
Petiatil, via Wikimedia Commons (public domain). Illustrative image.
Persistent Systems reported consolidated total income of ₹4,688.35 crore and net profit of ₹351.51 crore for the quarter ended 30 Sep 2026. Standalone total income was ₹4,513.56 crore and net profit was ₹482.89 crore.
Key highlights
Consolidated
Including its subsidiaries
Total income: ₹4,688 crore, up 29.1% YoY, up 7.2% QoQ
Net profit: ₹352 crore, down 25.4% YoY, down 27.2% QoQ
EPS: ₹22.42, against ₹30.31 in Q2 FY26
Finance costs: ₹37.57 crore, more than double the ₹17.98 crore of a year earlier
Standalone
The company on its own, without its subsidiaries
Total income: ₹4,514 crore, up 27.6% YoY, up 8.3% QoQ
Net profit: ₹483 crore, up 3.9% YoY, up 20.1% QoQ
EPS: ₹30.80, against ₹29.71 in Q2 FY26
Tax as share of profit before tax: 26.4%, against 25.7% a year earlier
Summary
Consolidated ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
4,688.35
3,632.50
+29.1%
4,373.86
+7.2%
Revenue from operations
4,663.90
3,580.72
+30.3%
4,303.22
+8.4%
Other income
24.45
51.78
-52.8%
70.64
-65.4%
351.51
471.47
-25.4%
483.04
-27.2%
Finance costs
37.57
17.98
+109.0%
29.14
+28.9%
Depreciation
166.67
100.05
+66.6%
115.29
+44.6%
Tax expense
102.17
145.36
-29.7%
140.06
-27.1%
Net profit margin
7.50%
12.98%
-5.48 pp
11.04%
-3.55 pp
Tax as share of profit before tax
22.5%
23.6%
-1.05 pp
22.5%
+0.04 pp
EPS, basic (₹)
22.42
30.31
-26.0%
30.88
-27.4%
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Revenue is growing at 30% and profit is falling, because costs have grown faster than revenue. Revenue from operations rose 30.3% to ₹4,663.90 crore, but net profit fell 25.4% to ₹351.51 crore and the margin to 7.50% from 12.98%. Depreciation rose 66.6% to ₹166.67 crore, finance costs 109.0% to ₹37.57 crore, and the notes say the costs of the Nagarro acquisition (advisory, due diligence, valuation and other transaction costs) are in other expenses. The filing text available does not give their amount, so how much of the fall they explain is not known.
The deal explains the notes. Persistent had secured about 94.04% of Nagarro SE, a Munich-based digital engineering and IT consulting company, by 6 October 2026: about 22.10% through a share purchase agreement signed on 26 June 2026 and about 71.9% through the open offer (61.15% and 10.79% in its two acceptance periods) at EUR 81 a share. The company gave a corporate guarantee of up to EUR 1,540 million to secure a EUR 1,400 million bridge loan from Barclays Bank PLC and a consortium, and shareholders approved borrowing of up to USD 1,250 million and raising up to USD 450 million of equity. The filing text available does not say whether Nagarro or any of that borrowing is in this quarter's figures.
Another smaller acquisition, Concise Systems' business in Estonia, completed on 1 July 2026. Against June, revenue rose 8.4% and profit fell 27.2% from ₹483.04 crore, and the tax share was unchanged at 22.5%. For H1 FY27 revenue is ₹8,967.13 crore against ₹6,914.31 crore (+29.7%).
Standalone ₹ crore
Particulars
Q2 FY27
Q2 FY26
YoY
Q1 FY27
QoQ
4,513.56
3,538.58
+27.6%
4,167.75
+8.3%
Revenue from operations
4,494.17
3,492.94
+28.7%
4,117.80
+9.1%
Other income
19.39
45.64
-57.5%
49.95
-61.2%
482.89
464.72
+3.9%
402.02
+20.1%
Finance costs
22.94
15.11
+51.8%
27.20
-15.7%
Depreciation
85.65
65.83
+30.1%
76.26
+12.3%
Tax expense
172.98
161.16
+7.3%
143.85
+20.3%
Net profit margin
10.70%
13.13%
-2.43 pp
9.65%
+1.05 pp
Tax as share of profit before tax
26.4%
25.7%
+0.62 pp
26.4%
+0.02 pp
EPS, basic (₹)
30.80
29.71
+3.7%
25.70
+19.8%
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
The parent company earns far more than the group. Standalone net profit of ₹482.89 crore is ₹131 crore above the consolidated ₹351.51 crore (derived), so the subsidiaries and the group-level items such as acquisition costs and depreciation reduce the group result. Standalone revenue rose 28.7% but profit only 3.9%, a margin of 10.70% against 13.13%, with depreciation up 30.1% and finance costs up 51.8%.
The standalone results are restated (note 7) for the treatment of the company's employee stock option trust, so earlier standalone periods may differ from those first published. Employee costs were ₹2,381.81 crore for the quarter against ₹1,946.10 crore (+22.4%), slower than revenue.
Inference
Persistent's earnings this quarter carry the cost of buying Nagarro and of faster-rising depreciation and interest, so the 30% revenue growth did not reach profit.
The Nagarro purchase is large and bridge-financed, and the filing text available does not give its transaction costs or its effect on the coming quarters' interest and depreciation.
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PERSISTENTPersistent Systems Ltd
