Persistent Systems Limited (PERSISTENT) Q2 FY27 Financial Results: PAT ₹4,830.4 Cr & Revenue ₹452.4 Cr(3 announcements)

Investor Takeaways

Overall Tone: Positive

Key Financial Highlights

What Changed

Persistent Systems reported robust Q1 FY27 financial results with revenue of ₹452.4 Cr, up 16.1% YoY, and net profit of ₹4830.4 Cr, up 13.7% YoY. The growth was fueled by record $1.15 billion in new deal wins (TCV) and strategic investments in artificial intelligence, which enhanced operational efficiency and drove EBITDA growth of 32.7% YoY to ₹6,868.8 Cr. Sequential revenue growth accelerated from ₹2,590.53 Cr in Q4FY24 to ₹3,062.28 Cr in Q3FY25, indicating strengthening demand. Profit margins improved to 17.56% OPM in Q3FY25 from 16.59% in Q2FY25, reflecting better cost management and higher-value contract execution. The company’s focus on AI and digital transformation appears to be translating into tangible financial outcomes, with EPS rising to ₹24.28 in Q3FY25. These results suggest a sustainable growth trajectory supported by expanding client spending in technology modernization initiatives.

Peer Comparison

Persistent trades at a significant premium to peers in P/E ratio, reflecting higher growth expectations. However, its ROE and ROCE figures are not provided in the filing, limiting direct profitability comparison. The company’s market cap places it among the top-tier IT firms, but its valuation implies market anticipation of continued outperformance in AI and digital services.

Risks & Concerns

Quarterly Trend

Revenue and profitability have shown consistent sequential growth over the last four quarters, with OPM expanding steadily from 16.59% to 17.56%, indicating improving operational leverage. Net profit growth accelerated in Q3FY25, aligning with the record deal wins and AI-driven momentum highlighted in the current filing.

Investor Takeaways

Overall Tone: Positive

Key Financial Highlights

What Changed

The company reported audited financial results for Q1 FY2026, ending June 30, 2026. Revenue reached ₹3,062.28 Cr, reflecting an 18.28% year-on-year increase from ₹2,590.53 Cr in Q4FY24. Net profit grew to ₹372.99 Cr, up 18.46% from ₹315.32 Cr in the same quarter of the previous fiscal year. Operating profit margin (OPM) stood at 17.56%, slightly up from 17.54% in Q4FY24. Earnings per share (EPS) increased to ₹24.28, marking an 18.46% rise from [amount not verified] in Q4FY24. The financials were approved by the Board and made available on the company’s website for investor review. No additional commentary or forward-looking statements were included in the filing.

Peer Comparison

Persistent Systems Limited trades at a significantly higher P/E ratio compared to its peers, indicating market expectations of higher future growth. However, peer companies report ROE and ROCE figures that are substantially higher, suggesting stronger returns on equity and capital employed. The company’s market capitalization is smaller relative to TCS and Infosys, but it operates in a different segment within the IT software industry.

Risks & Concerns

Quarterly Trend

About Persistent Systems Limited (PERSISTENT)

Information Technology · IT - Software · Listed on NSE

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