Persistent Systems Ltd.Revenue +20% to $487.6M, EBIT 15%, Nagarro 94% secured

Persistent Systems' Q2 FY27 call, held on 15 October 2026, reported revenue of $487.6 million, up 7.8% sequentially and 20% year on year, the 26th straight quarter of sequential growth.

EBIT margin fell 100 basis points on the quarter to 15%, after the annual wage hike and amortisation of a large technology deal, and management repeated an aspiration of 16% to 17% without guidance. Operating profit after tax margin was 10.6%, but reported profit fell 25.4% because of about $19 to $20 million of Nagarro acquisition costs. Total contract value was $633.5 million and annual contract value $481 million, softer after a $1.15 billion quarter, with trailing twelve-month TCV up 36.3%.

Open-offer acceptances for Nagarro reached 94.04%, remaining approvals are expected within four to eight weeks, and closing is expected by Q4 of calendar 2026 or Q1 of 2027, funded by $1.25 billion of debt and equity. It gave no forward revenue guidance and expects another $25 to $30 million of deal costs.