# Persistent Systems Reports Robust Q2 FY27 Growth Amid Nagarro Acquisition Progress

URL: https://technosports.co.in/persistent-systems-reports-robust-q2-fy27/  
Published: 2026-10-15  
Updated: 2026-10-15  
Author: Reetam Bodhak

Persistent Systems (BSE: 533179 and NSE: PERSISTENT) today announced its audited financial results for the second quarter ended September 30, 2026, reporting a 20.0% year-on-year revenue increase and significant progress on its acquisition of Nagarro.

The company posted revenue of $487.6 million for Q2 FY27, representing a 20.0% increase year-on-year and a 7.8% rise quarter-on-quarter. This marks the 26th consecutive quarter of growth for the IT services firm. In constant currency, revenue growth stood at 20.8% year-on-year and 7.8% quarter-on-quarter.

## Persistent Systems: Financial Performance Overview

Persistent Systems reported an Earnings Before Interest and Taxes (EBIT) margin of 15.0% for the quarter. While revenue saw strong growth, Profit After Tax (PAT) for Q2 FY27 was INR 3,515.1 million, reflecting a decline of 27.2% quarter-on-quarter and 25.4% year-on-year. Profit Before Tax (PBT) also saw a modest increase of 2.5% quarter-on-quarter but a 5.0% year-on-year rise, reaching INR 4,951.5 million.

The company secured new business with a Total Contract Value (TCV) of $633.5 million and an Annual Contract Value (ACV) of $481.0 million during the quarter.

![Persistent Systems](https://technosports.co.in/wp-content/uploads/2026/10/Persistent-4-4-1024x768.webp)

## Strategic Acquisition of Nagarro Advances

A key development during the quarter was the significant progress in the strategic acquisition of Nagarro. Persistent Systems has secured approximately 94.04% of Nagarro’s share capital and voting rights, excluding treasury shares. This move is intended to strengthen Persistent Systems’ long-term growth trajectory, expand its engineering capabilities, and enhance its global delivery footprint.

Shareholders approved an equity raise of up to $450 million for the acquisition, with combined equity and borrowings capped at $1,250 million, during an Extraordinary General Meeting.

Sandeep Kalra, Chief Executive Officer and Executive Director, stated, “We are pleased with our Q2 FY27 revenue, which reflects continued sequential growth. The substantial progress on the Nagarro acquisition aligns with our M&A strategy to enhance engineering capabilities and geographic presence. We are also strengthening our AI capabilities through our 3C framework and AI-driven platforms, focusing on developing Enterprise Context within client environments.”

## Client Engagement Highlights

During Q2 FY27, Persistent Systems secured several client wins across its core sectors:

* **Software, Hi-Tech & Emerging Industries:** Projects included accelerating mainframe and legacy modernization with AI, reengineering Salesforce ecosystems for integrated operations, and strengthening data and AI foundations for brand integration.  
* **Banking, Financial Services & Insurance:** Engagements focused on modernizing legacy policy administration systems by migrating to cloud-native platforms, streamlining branch oversight with AI agents, and automating asset and wire transfers through AI.  
* **Healthcare and Life Sciences:** The company undertook initiatives to unify fragmented IT operations, enhance product engineering and security with AI augmentation, and scale data and AI platforms to improve care outcomes.

The company’s performance and strategic initiatives contribute to broader trends observed in the IT services sector, which readers can follow for the latest industry developments. For more information on Persistent Systems ([https://www.persistent.com/](https://www.persistent.com/)), visit their official website.