Persistent Systems reported a consolidated net profit of ₹4,830.43 million for the quarter ended June 30, 2026, marking a 13.7% increase from ₹4,249.36 million in the same period last year. Consolidated revenue from operations rose 29.1% year-on-year to ₹43,032.27 million (US$452.4 million), driven by broad-based growth across its Banking, Financial Services and Insurance (BFSI), Healthcare & Life Sciences, and Software, Hi-Tech and Emerging Industries segments. This performance marks the company’s 25th sequential quarter of revenue growth, with an EBIT margin of 16.0% and a record quarterly Total Contract Value (TCV) of US$1.15 billion.

The results were approved by the Board of Directors at a meeting held on August 2, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors B S R & Co. LLP expressed an unmodified audit opinion on both the standalone and consolidated financial results. An investor/analyst call was scheduled for August 3, 2026, to discuss the financial results and business outlook.

Financial Performance

Consolidated total income reached ₹43,738.63 million, up from ₹33,882.49 million in the previous year’s quarter. Total expenses were ₹37,507.62 million, including employee benefits expense of ₹21,988.07 million and subcontracting costs of ₹6,671.61 million. Profit before tax was ₹6,231.01 million, against which tax expense totaled ₹1,400.58 million. Basic earnings per share (EPS) were ₹30.88, compared to ₹27.43 in Q1FY26.

Standalone revenue from operations grew 26.4% YoY to ₹41,178.01 million. Standalone profit before tax was ₹5,458.71 million, with a net profit of ₹4,020.24 million. Standalone basic EPS was ₹25.70, up from ₹23.71 in the prior year quarter.

Operational Highlights

The company achieved a record quarterly TCV of US$1.15 billion, reflecting momentum in larger client engagements, including a 6.5-year strategic services agreement with a leading global technology company valued at more than US$650 million. Trailing twelve-month (TTM) TCV stood at US$3,030.7 million, while TTM Annual Contract Value (ACV) was US$1,931.7 million.

Employee headcount increased to 28,640 as of June 30, 2026, from 27,502 in the previous quarter. The technical workforce comprised 26,905 employees. Utilization rate was 86.5%, including trainees, while the trailing twelve-month attrition rate declined to 12.3% from 13.0% in the prior quarter. Days Sales Outstanding (DSO) for billed receivables was 61 days.

Strategic Developments

The Board approved the proposed acquisition of Nagarro SE through its subsidiary Galaxy Germany Holding SE ('BidCo') at EUR 81 per share. A Share Purchase Agreement was signed with Lantano Beteiligungen GmbH to acquire a 21% shareholding initially. The Board also approved a corporate guarantee of up to EUR 1,540 million to secure bridge financing of EUR 1,400 million from Barclays Bank PLC. This transaction requires shareholder approval at the 36th Annual General Meeting and requisite regulatory clearances, including Reserve Bank of India (RBI) approval and FDI filings.

Additionally, Persistent Systems Ireland Operations Limited established a new subsidiary in Estonia via acquisition on May 22, 2026. A Business Purchase Agreement with Concise Systems OÜ was executed on May 28, 2026, with closing conditions met on July 1, 2026; this had no accounting impact in Q1FY27. The merger of MediaAgility India Private Limited into the holding company is also pending necessary approvals.

What the Numbers Show

Revenue growth significantly outpaced net profit growth, with revenue rising 29.1% YoY while net profit grew 13.7%. This divergence suggests margin pressure, potentially due to higher employee benefits expense (up 20.4% YoY to ₹21,988.07 million) and subcontracting costs (up 39.1% YoY to ₹6,671.61 million). While top-line expansion is robust, the disproportionate rise in operational costs indicates that cost management remains a key focus area as the company scales. However, the maintenance of a 16.0% EBIT margin amidst aggressive hiring (headcount up 4.1% QoQ) demonstrates disciplined execution in managing leverage during high-growth phases.

Persistent Systems will conduct a non-deal roadshow on August 4 and 5, 2026, to engage directly with institutional investors. The company disclosed the schedule pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, informing the National Stock Exchange of India Limited and BSE Limited of the upcoming interactions. These sessions aim to maintain transparency with the investment community following the release of its quarterly results.

The roadshow involves a series of one-on-one meetings and one group session with various financial institutions. Persistent Systems emphasized that no unpublished price-sensitive information will be shared during these interactions. Instead, management will reiterate the details presented during its investor and analyst call held on Monday, August 3, 2026, which covered the quarter ended June 30, 2026.

The schedule for the first day of the roadshow is as follows:

The second day of engagements continues on Wednesday, August 5, 2026:

Amit Atre, Company Secretary of Persistent Systems Limited, signed the disclosure filed on July 30, 2026. The company confirmed that all interactions are strictly confined to publicly available information to ensure fair disclosure across all market participants.