Persistent Systems’ shares slipped 1% to ₹5,840 on the NSE after the earnings announcement, reflecting traders’ caution over the pending Nagarro deal.
Revenue from operations rose 20.8% YoY in constant currency to ₹4,663.9 crore, with a 30.3% increase in rupee terms. In USD, it climbed 20% to $487.6 million. EBIT margin narrowed to 15% from 16.3%, while EBITDA margin fell to 18.5% from 19.1%.
All three core segments grew: Software, Hi-Tech and Emerging Industries up 28.5% to $208.5 million, BFSI 16.2% to $164.3 million, and Healthcare and Life Sciences 12% to $114.8 million. North America contributed 81.4% of revenue, with Europe at 7.1% and India 9.2%.
The company secured 94.04% of Nagarro’s share capital and expects the transaction to close in Q4 2026 or Q1 2027, pending RBI and foreign investment approvals. It has also approved an equity raise of up to $450 million, keeping total equity and borrowings capped at $1.25 billion.
Persistent will report Q3 FY27 on July 15. Analysts are watching the impact of the Nagarro acquisition on future margins and the company’s guidance on revenue and EBITDA. The stock currently trades 7% lower for the year, but some traders see upside if the deal proceeds.