Persistent Systems Q1 FY27: Profit Falls, Revenue Rises

What Persistent Systems reported for Q1 FY27

Persistent Systems Ltd. reported a sequential decline in profitability for the first quarter of FY27, even as revenue from operations grew. In an exchange filing dated Sunday, the company said its consolidated net profit fell 8.7% quarter-on-quarter (QoQ). The company posted a consolidated bottom line of Rs 483 crore in Q1 FY27. This compared with Rs 529 crore in the preceding quarter.

On the top line, revenue from operations increased 6.1% QoQ to Rs 4,303 crore from Rs 4,056 crore in Q4. The results point to continued growth in revenue but a weaker operating outcome for the quarter. The filing also highlighted a decline in earnings before interest and taxes (EBIT) and a sharp drop in margins.

Key numbers: profit down, revenue up

The quarter showed a divergence between revenue growth and operating performance. EBIT slipped nearly 12% QoQ to Rs 582 crore from Rs 659 crore in Q4. As a result, the EBIT margin contracted by 280 basis points to 13.5% from 16.3% in the previous quarter.

Sequential margin compression of this magnitude is typically significant for IT services companies, where investor focus often stays on execution discipline, cost management, and delivery efficiency. While the filing provides the headline numbers, it does not provide detailed drivers behind the quarter’s margin move in the same excerpt.

Snapshot table: Q1 FY27 vs Q4 FY26 (QoQ)

How the quarter compares with March 2026 reported financials

The article text also includes consolidated financial highlights for the quarter ended March 31, 2026 (Q4 FY26), presented in INR million. Converted into INR crore for consistency, Q4 FY26 revenue was Rs 4,055.9 crore, EBIT was Rs 659.2 crore, and PAT was Rs 529.3 crore. The Q4 FY26 EBIT margin was 16.3% and PAT margin was 13.1%.

These Q4 figures provide the base for the sequential comparison used in the Q1 FY27 filing summary. The Q1 FY27 revenue increase versus Q4 FY26 is visible, but the operating line and margin moved in the opposite direction.

FY26 annual context: growth with margin track record

For the full year FY26, Persistent Systems reported revenue of $1,654.4 million, with year-on-year (YoY) revenue growth of 17.4%. The company’s FY26 EBIT margin was reported at 15.6%.

The text also provides rupee annual revenue for FY26 at Rs 147,484.5 million, which converts to Rs 14,748.5 crore. FY26 PAT was Rs 18,651.2 million, or about Rs 1,865.1 crore, with PAT growth of 33.2% YoY and a PAT margin of 12.6%.

The FY26 margin numbers included a one-time impact from new labor codes. The article states this amounted to about 0.6 percentage points on EBIT and 0.5 percentage points on PAT, and the audited financial statements quantified the exceptional item at Rs 890.25 million (about Rs 89.0 crore).

Dividend and board actions mentioned in the text

The article notes that the Board of Directors, at its meeting held on April 21, 2026, recommended a final dividend of Rs 18 per equity share (face value Rs 5) for FY25-26. It further states total FY2026 dividend was Rs 40 per share versus Rs 35 per share in FY2025.

Separately, the text mentions the company has scheduled a board meeting for August 02, 2026, to consider audited financial results and recommend dividend for FY2026-2027. The same date also appears as the “results date” in the quick details section.

Business commentary included for a June quarter update

A separate section in the provided text (datelined Bengaluru) states Persistent Systems reported a 3.3% sequential revenue rise for the June quarter and a 19% year-on-year increase in constant currency terms. Growth was led by BFSI, which rose 9% sequentially, and software, hi-tech and emerging industries at 3.6%, while healthcare and lifesciences declined 1.9%.

Geographically, that update said North America grew 3%, Europe 11.3%, and India 9.4%, while Rest of the World declined 19.2%. It also reported total contract value (TCV) of $120 million and new bookings of $137 million.

That section also said EBIT margins contracted 10 bps sequentially to 15.5%, impacted by slower ramp-ups, onsite resource retention during offshore transitions, and currency movements. It added that these were partially offset by a 230 bps benefit from lower ESOP costs.

Market cues and stock reference points in the article

The “Quick Details” section in the provided text lists Persistent Systems’ market capitalisation at Rs 83,105.86 crore and a current market price (CMP) of Rs 5,268.2. Another part of the text references that, as of July 2026, the stock traded around Rs 4,330.2 on the NSE.

The text also includes end-of-day price references for May 29, 2026, showing 5,199.90 with a change of 102.55 (2.01%) and an NSE EOD reference at 5,194.30 with a change of 95.91 (1.89%). These provide context points but are not linked in the excerpt to the Q1 FY27 result-day move.

Why the Q1 FY27 print matters for investors

The Q1 FY27 filing summary shows the company grew revenue sequentially but saw a weaker operating outcome. The headline numbers underscore the sensitivity of earnings to changes in operating efficiency and cost structure, visible in the 280 bps decline in EBIT margin.

FY26 results in the text show Persistent delivered strong YoY growth and expanded profitability on an annual basis, alongside a stated one-time margin impact from labor codes. Against that annual backdrop, the Q1 FY27 sequential decline in profit and EBIT can become a key datapoint for investors tracking whether profitability normalises in subsequent quarters.

Conclusion

Persistent Systems reported Q1 FY27 consolidated net profit of Rs 483 crore, down 8.7% QoQ, while revenue rose 6.1% to Rs 4,303 crore. EBIT fell to Rs 582 crore and margin contracted to 13.5% from 16.3% in Q4.

The text also points to a board meeting scheduled for August 02, 2026 to consider audited financial results and a dividend recommendation for FY2026-2027, which investors will watch for additional disclosures and formal approvals.