Persistent Systems Q1 Profit Up 13.7%, Nagarro Deal Signed
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Persistent Systems reports 13.7% Q1 profit rise to Rs 483 crore, with revenue up 29%. Company signs Nagarro deal, achieves record $1.15B TCV & strong segment growth.
Photograph: Vivek Prakash/Reuters
New Delhi, Aug 3 (PTI) IT firm Persistent Systems has reported a 13.67 per cent increase in consolidated net profit to Rs 483.04 crore in the April-June quarter.
The company had posted a net profit of Rs 424.93 crore in the year-ago period.
Persistent Systems' revenue from operations rose 29 per cent to Rs 4303.22 crore in Q1 FY27, as compared to Rs 3,333.58 crore in Q1 FY26.
Seen sequentially, profit fell 8.7 per cent on account of forex losses, while revenue grew 6 per cent.
"This performance was underpinned by a record quarterly Total Contract Value (TCV) of USD 1.15 billion, reflecting continued momentum in larger client engagements, including a 6.5-year strategic services agreement with a leading global technology company with a TCV of more than USD 650 million," Persistent Chief Executive Officer and Executive Director Sandeep Kalra said.
The Software, Hi-Tech and Emerging Industries vertical remained the largest revenue contributor at 40.7 per cent, recording a year-on-year growth of 15.7 per cent.
The Banking, Financial Services and Insurance (BFSI) segment accounted for 34 per cent of the revenue mix with a 16.3 per cent growth, while the Healthcare and Life Sciences sector contributed 25.3 per cent, posting a 16.4 per cent increase over the corresponding quarter of the previous year.
Geographically, North America continued to be the mainstay for the firm, accounting for 79.1 per cent of the total revenue during the June quarter. The India market emerged as the second-largest geography, contributing 9.8 per cent of the revenue, followed closely by Europe at 8.5 per cent. The Rest of the World segment made up the remaining 2.6 per cent of the company's consolidated revenue for the period.
During the quarter under review, Persistent signed a Business Combination Agreement with Nagarro, a Frankfurt-listed European digital engineering firm. The transaction aims to create an AI-led global engineering powerhouse with a revenue run rate of approximately USD 2.9 billion.
The Nagarro deal is expected to close by Q4 CY26 or Q1 CY27.
The company's total employee strength increased to 28,640 as of June 30, 2026, up from 27,502 in the previous quarter and 25,340 in the year-ago period.
The company had posted a net profit of Rs 424.93 crore in the year-ago period.
Persistent Systems' revenue from operations rose 29 per cent to Rs 4303.22 crore in Q1 FY27, as compared to Rs 3,333.58 crore in Q1 FY26.
Seen sequentially, profit fell 8.7 per cent on account of forex losses, while revenue grew 6 per cent.
"This performance was underpinned by a record quarterly Total Contract Value (TCV) of USD 1.15 billion, reflecting continued momentum in larger client engagements, including a 6.5-year strategic services agreement with a leading global technology company with a TCV of more than USD 650 million," Persistent Chief Executive Officer and Executive Director Sandeep Kalra said.
The Software, Hi-Tech and Emerging Industries vertical remained the largest revenue contributor at 40.7 per cent, recording a year-on-year growth of 15.7 per cent.
The Banking, Financial Services and Insurance (BFSI) segment accounted for 34 per cent of the revenue mix with a 16.3 per cent growth, while the Healthcare and Life Sciences sector contributed 25.3 per cent, posting a 16.4 per cent increase over the corresponding quarter of the previous year.
Geographically, North America continued to be the mainstay for the firm, accounting for 79.1 per cent of the total revenue during the June quarter. The India market emerged as the second-largest geography, contributing 9.8 per cent of the revenue, followed closely by Europe at 8.5 per cent. The Rest of the World segment made up the remaining 2.6 per cent of the company's consolidated revenue for the period.
During the quarter under review, Persistent signed a Business Combination Agreement with Nagarro, a Frankfurt-listed European digital engineering firm. The transaction aims to create an AI-led global engineering powerhouse with a revenue run rate of approximately USD 2.9 billion.
The Nagarro deal is expected to close by Q4 CY26 or Q1 CY27.
The company's total employee strength increased to 28,640 as of June 30, 2026, up from 27,502 in the previous quarter and 25,340 in the year-ago period.
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