Persistent Systems reported a 16.1% year-on-year rise in revenue for the first quarter of FY27, reaching $452.4 million. The IT services firm also disclosed an expansion in profitability, with EBIT margins climbing to 16.0% from 14.4% in the corresponding period of the previous fiscal year.

The company filed its investor presentation with stock exchanges on September 19, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing details financial performance for the quarter ended June 30, 2026, and outlines strategic initiatives including a proposed business combination with Nagarro.

Financial Performance

Revenue growth was driven by broad-based momentum across key industry segments. In Q1FY27, Persistent Systems delivered sequential revenue growth for the 25th consecutive quarter since FY21. The quarterly revenue stood at $452.4 million, compared to $389.7 million in Q1FY26.

Profitability metrics showed significant improvement. The EBIT margin for the quarter reached 16.0%, an increase from 12.1% in Q1FY26. Profit after tax (PAT) margin also expanded to 11.2% from 9.8% in the prior year period. For the trailing twelve months (TTM) ending June 30, 2026, total revenue amounted to $1,717.1 million, representing a 16.8% year-on-year increase.

Sector-Wise Revenue Breakdown

The company highlighted strong performance across its core verticals. Healthcare & Life Sciences emerged as the fastest-growing segment with a three-year CAGR of 30.2%. Banking, Financial Services & Insurance (BFSI) followed with a 23.0% CAGR, while Software, Hi-Tech & Emerging Industries grew at an 8.7% CAGR over the same period.

In FY26, BFSI contributed $571.8 million to revenue, Healthcare & Life Sciences added $423.2 million, and Software, Hi-Tech & Emerging Industries accounted for $659.4 million. Client concentration remained stable, with top 10 clients contributing 43.0% of total revenue in Q1FY27, up slightly from 41.6% in FY26.

What the Numbers Show

Persistent Systems demonstrated superior relative outperformance against listed Indian IT peers in Q1FY27. While the aggregate peer group saw a quarter-on-quarter revenue growth of just 0.52%, Persistent achieved 3.76%. Year-on-year, the peer group grew by 3.44%, whereas Persistent posted 16.07%, resulting in a relative outperformance of 12.63 percentage points. This divergence highlights the company’s ability to sustain double-digit growth rates in a sector experiencing slower momentum.

Strategic Initiatives and Nagarro Acquisition

A significant portion of the presentation focused on the proposed acquisition of Nagarro, a European digital engineering firm. Persistent has agreed to acquire 100% of Nagarro at an enterprise value of approximately €1.27 billion, based on a cash offer of €81 per share. This valuation represents a premium of roughly 140% to Nagarro’s undisturbed closing price on June 25, 2026.

Nagarro reported CY2025 revenue of €999.3 million and an adjusted EBITDA margin of 13.8%. The transaction aims to diversify Persistent’s geographic footprint, which is currently heavily weighted towards North America (80.6% of revenue), by adding significant presence in Europe and other regions. Nagarro employs 18,003 professionals across 38 countries, complementing Persistent’s workforce of 28,640 employees.

The company has already secured a 21% stake in Nagarro and received necessary regulatory approvals, including FDI filings and merger control clearances. An extraordinary general meeting (EGM) scheduled for October 2026 will seek approval for an equity raise of up to $450 million to fund the transaction, with combined equity and borrowings capped at $1,250 million.

Persistent Systems has accepted the resignation of Cdr. Jayant Shivaji Konde from his role as Senior Vice President – Administration. The departure is effective from the closure of business hours on September 18, 2026.

The company disclosed the change under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The filing references the SEBI Master Circular dated January 30, 2026.

Konde, who also held the designation of Senior Management Personnel (SMP), cited personal reasons for stepping down. The firm confirmed there was no material reason behind the resignation.

Resignation Details

The resignation was submitted to Mr. Vinit Teredesai, Executive Director and Chief Financial Officer. The disclosure was signed by Amit Murari Atre, Company Secretary.

The exit marks a leadership change in the administration function but does not impact the company’s financial reporting or operational strategy as per the current filing.