Persistent Systems sent Q2 revenue to $487.6 million, a 7.8% YoY jump, beating consensus of $452.4 million and lifting the company above the sector average of 3.5%.
EBIT margin slipped to 15% from 16% sequentially, missing estimates of 15.5%. According to the BSE filing, a ₹185.34 crore one‑off expense from the Nagarro acquisition dented PAT by ₹351.5 crore.
Total contract value contracted 61% sequentially to $367 million, but grew 5% YoY, reflecting a shift in deal mix. Top‑five client revenue rose 24% sequentially, top‑ten 17%, signalling solid client‑base momentum. CFO Rishi Sharma said win‑back of larger tech deals kept top‑line healthy.
J.P. Morgan keeps an overweight stance, target ₹6,400, citing a broad‑based pipeline and 2.5% pipeline value uplift. CLSA trimmed FY27‑29 EPS forecasts by 6–9% after margin miss, yet still projects 16% CAGR for revenue and 19% for EBIT.
Management anticipates the Nagarro deal to close within the next two quarters, with FY27 guidance unchanged. Analysts expect margin recalibration, so volatility could rise as the market digests the one‑off hit to earnings.