Persistent Systems Q2 FY27: revenue +20% YoY, PAT -25%

Board approves results; earnings call scheduled

Persistent Systems Limited reported its financial results for the quarter and half-year ended 30 September 2026. The company said its Board of Directors approved the results at a meeting held on 15 October 2026 at its registered office in Pune, India. The results point to continued top-line momentum, with growth reported in both US dollar and Indian rupee terms.

The company had also flagged 15 October 2026 as the date when it would disclose Q2 FY27 results, with senior management, including CEO Sandeep Kalra, scheduled to host an earnings conference call at 5:00 PM IST the same day. The timing mattered for investors because the quarter included the first full impact period after management had indicated an annual wage revision would be effective in Q2 FY27.

Q2 FY27 revenue rises sequentially and year-on-year

For Q2 FY27, Persistent Systems reported revenue of USD 487.6 million, up 7.8% quarter-on-quarter (QoQ) and 20.0% year-on-year (YoY). In rupee terms, the company reported revenue of INR 46,639.0 million, up 8.4% QoQ and 30.3% YoY. The parallel disclosure in both currencies highlights strong reported growth, and the rupee growth rate was higher than the US dollar growth rate.

The update also stated that revenue from operations climbed 30.2% YoY to INR 46,639.04 million, supported by strong demand across key verticals. While the article did not list vertical-wise numbers for Q2, it positioned demand as broad-based.

EBIT margin stays healthy; EBIT reported at INR 6,977.2 million

Persistent Systems reported an EBIT margin of 15.0% for Q2 FY27. EBIT for the quarter was INR 6,977.2 million. The margin level matters because it provides a clean view of operating performance in a quarter where profit after tax moved differently.

The company’s Q2 FY27 margin was lower than the 16.0% EBIT margin it reported in Q1 FY27 (quarter ended 30 June 2026), based on figures cited in the provided context. The article attributed pressure on the bottom line to acquisition-related expenses, which can also influence near-term margin profiles.

PAT declines as acquisition-related expenses weigh

Profit After Tax (PAT) for Q2 FY27 was INR 3,515.1 million. The company said PAT declined 27.2% QoQ and 25.4% YoY. A separate line in the provided text also reported consolidated net profit of INR 3,515.14 million, and noted a 27.2% decline (QoQ) from the previous quarter’s INR 4,830.43 million.

The write-up explicitly linked the sequential contraction in the bottom line to acquisition-related expenses weighing on margins. At the same time, it framed the revenue trajectory as “robust”, indicating the profit decline was not driven by a revenue slowdown in the quarter.

Deal bookings remain strong: TCV and ACV disclosed

Persistent Systems reported new order bookings for the quarter with a Total Contract Value (TCV) of USD 633.5 million and an Annual Contract Value (ACV) of USD 481.0 million. These booking metrics are closely watched in Indian IT services because they can offer signals about near-term demand visibility.

For context, the same dataset referenced that in Q1 FY27, total contract value reached a record USD 1,146.2 million and ACV was USD 536.8 million. The Q2 figures therefore represent a lower level than the record Q1 booking numbers mentioned, but still substantial in absolute terms.

Key numbers at a glance (all figures in millions)

Q1 FY27 reference points investors will compare against

The provided context includes Q1 FY27 consolidated revenue of INR 43,032.3 million and USD 452.4 million. Q1 FY27 PAT was reported at INR 4,830.4 million, with an 11.2% PAT margin, and EBIT was INR 6,868.8 million with a 16.0% EBIT margin.

In other words, Q2 FY27 delivered higher revenue than Q1 FY27, but PAT moved in the opposite direction. This revenue-profit divergence is consistent with the note that acquisition-related expenses affected margins and the bottom line in Q2.

Earnings dates and disclosures mentioned in the update

The text referenced a “Last Earnings Date” of Q1 FY26-27 on 2 Aug, 2026 and an “Upcoming Earnings Date” of Q2 FY26-27 on 15th Oct, 2026. It also repeated that Persistent Systems would report Q2 2027 results on Oct 15, 2026.

Investors typically use these dates to track the cadence of board approvals, filings, and management commentary. The same context also stated that the board had approved audited financial statements for the quarter ended June 30, 2026 at a meeting held on August 2, 2026.

What this means for the stock and the sector

The quarter’s key takeaway is the combination of strong revenue growth and weaker profit. For an IT services company, sustained revenue growth rates such as 20.0% YoY in USD terms and 30.3% YoY in INR terms are material signals of demand and execution, particularly when paired with disclosed deal metrics like TCV and ACV.

But the PAT decline and the explicit mention of acquisition-related expenses put attention on integration costs and near-term profitability. In this setup, the earnings call scheduled for 5:00 PM IST on 15 October 2026 becomes the primary checkpoint for investors seeking clarity on margin drivers and the expected duration of acquisition-linked costs.

Analyst context: estimates and margin headwinds already on the radar

The provided context cited an August 3, 2026 Q1 FY27 update by Prabhudas Lilladher, which retained a constructive view on underlying fundamentals supported by revenue growth and deal bookings. It also mentioned management commentary that an annual wage revision effective Q2 FY27 could create a 180-200 basis point margin headwind, with mitigation expected through operating leverage, utilisation improvement, and higher offshoring.

The same note indicated a targeted 16-17% operating-margin band for FY27, and included estimates such as FY27E sales of INR 185,000 million and FY27E EPS of INR 143.9 (down 5.9%), alongside an FY27E EBIT margin estimate of 16.3%. These are external estimates and are not company guidance in the text, but they frame the margin debate around Q2.

FY26 base numbers also provide scale

For the full year FY26, Persistent Systems reported revenue of INR 147,484.49 million, profit for the period of INR 18,651.20 million, and total dividend of INR 40 per share including an interim dividend of INR 22. These figures help contextualise the quarterly scale of operations and shareholder returns.

Conclusion

Persistent Systems’ Q2 FY27 results show sustained revenue momentum, with revenue rising to USD 487.6 million and INR 46,639.0 million, while EBIT margin stood at 15.0%. The quarter was marked by a sharp PAT decline to INR 3,515.1 million, which the text linked to acquisition-related expenses. The next concrete milestone is management’s earnings conference call at 5:00 PM IST on 15 October 2026, where investors will look for detail on margin trajectory and integration costs alongside demand signals from bookings.