Persistent Systems Share Price: Why Q2 FY27 Profit Fell 25% While Revenue Grew 30%
Persistent Systems reported Q2 FY27 consolidated net profit of ₹351.5 crore, down 25.4% year-on-year, even as revenue rose 30.3% to ₹4,663.9 crore, BW Businessworld reported on October 15, 2026. Dollar revenue grew 20% to $487.6 million, the company's 26th straight quarter of sequential growth. The Persistent Systems share price closed at ₹5,840 on the NSE on October 15, down 0.98%, before the results were released.
A 30% revenue jump and a 25% profit drop in the same quarter is unusual. The explanation is largely the company's acquisition of Nagarro.
Key Takeaways
- Revenue: ₹4,663.9 crore, +30.3% YoY and +8.4% QoQ.
- Dollar revenue: $487.6 million, +20.0% YoY and +7.8% QoQ.
- EBIT margin: 15.0%.
- Reported net profit: ₹351.5 crore, −25.4% YoY and −27.2% QoQ.
- Operating PAT (adjusted by the company): ₹495.15 crore, +5% YoY.
- The company said it had secured about 94.04% of Nagarro's share capital.
What Did Persistent Systems Report for Q2 FY27?
| Metric | Q2 FY27 | Q2 FY26 | YoY |
|---|---|---|---|
| Revenue (₹) | ₹4,663.9 crore | ₹3,580.7 crore | +30.3% |
| Revenue (US$) | $487.6 million | — | +20.0% |
| EBIT margin | 15.0% | — | — |
| Reported net profit | ₹351.5 crore | ₹471.5 crore | −25.4% |
| Operating PAT | ₹495.15 crore | — | +5% |
Source: BW Businessworld, October 15, 2026.
CEO Sandeep Kalra described the quarter as the company's 26th consecutive quarter of sequential revenue growth, with 7.8% QoQ and 20% YoY growth in dollar terms and a 15% EBIT margin, BW Businessworld reported.
GoPocket Analysis: The Gap Between Reported and Operating Profit
The key number is the difference between reported net profit and the company's operating PAT. Operating PAT of ₹495.15 crore minus reported profit of ₹351.5 crore leaves about ₹143.6 crore (GoPocket calculation). That gap reflects items the company treats as outside its core operations, such as acquisition-related costs and accounting adjustments.
Why does this matter? On an operating basis, profit grew about 5% YoY. That is slower than revenue, but very different from the headline 25% fall. Investors need to judge how long acquisition-related costs will continue and whether the Nagarro integration lifts earnings once those costs fade.
The second insight is about growth quality. Rupee revenue rose 30.3% while dollar revenue rose 20%. Roughly 10 percentage points of the rupee growth reflects currency movement. Some of the 7.8% sequential dollar growth may also include acquired revenue; the company's investor presentation will show the split between organic and inorganic growth.
What Is the Nagarro Deal?
Persistent said it had secured about 94.04% of Nagarro's share capital and voting rights, excluding treasury shares, BW Businessworld reported. Nagarro is a Germany-listed digital engineering company. A deal of this size significantly expands Persistent's scale, client base and geographic reach, but it also brings integration risk and financing costs that can weigh on reported profits for several quarters.
Where Does the Persistent Systems Share Price Stand?
| Data point | Value |
|---|---|
| Close on October 15, 2026 | ₹5,840.00 (−0.98%) |
| 52-week high | ₹6,599.00 (December 23, 2025) |
| 52-week low | ₹4,244.50 (June 30, 2026) |
| Distance from 52-week high | About −11.5% |
Source: NSE bhavcopy data. Percentages calculated by GoPocket.
Compare Persistent with mid-tier IT peers on GoPocket: Coforge, Mphasis, KPIT Technologies and Tata Elxsi. For large-cap IT results, read our Wipro Q2 FY27 and Tech Mahindra Q2 FY27 coverage.
What Are the Risks?
- Integration: Combining two large engineering businesses can disrupt clients and staff.
- Acquisition costs: Financing and integration expenses may keep reported profit below operating profit for some time.
- Margin dilution: The combined business may carry a different margin profile.
- Currency: Rupee growth includes a currency tailwind that can reverse.
What Should Investors Watch Next?
- Organic versus acquired revenue growth in coming quarters.
- How quickly the gap between reported and operating profit narrows.
- Completion of the remaining Nagarro stake and integration milestones.
- EBIT margin trend around 15%.
Track the live Persistent Systems share price on GoPocket.
Sources
- BW Businessworld, Persistent Systems Q2 Net Profit Falls 25.4% Despite 20% Revenue Growth, October 15, 2026
- NSE bhavcopy closing prices and 52-week data, October 15, 2026
Disclaimer: This article is for information and educational purposes only and is not investment advice or a recommendation to buy, sell or hold any security. Past performance does not guarantee future returns. Consult a SEBI-registered investment adviser before investing.
