Persistent Systems Q2 results: Profit declines 27% QoQ to ₹352 crore as margins shrink; TCV at $633 million

Midcap IT firm Persistent Systems announced its July to September quarter earnings for the financial year 2026-27, in which the company posted a 27% sequential decline in its consolidated net profit as margins remain under pressure.

NSE filings showed that Persistent Systems recorded a 27.2% decline in its net profit after tax (PAT) to ₹352 crore in the second quarter of FY27, in comparison to ₹483 crore in the previous quarter of the current fiscal year.

The company’s fall in PAT was largely driven by the ₹185.34 crore exceptional expense related to the proposed Nagarro acquisition in the period under review.

On a year-on-year (YoY) basis, Persistent’s consolidated net profits dropped 25.4% to its September quarter levels, in comparison to ₹471 crore in the corresponding quarter of the previous financial year.

The data further showed that the midcap IT company’s revenue from core operations advanced by 8.3% to ₹4,664 crore in Q2 FY27, from ₹4,303 crore in Q2 FY26, as per the exchange filings.

Despite the increase in revenues in the period, the overall net profits declined QoQ due to the 13% surge in overall expenses in the September quarter. Persistent’s total expenses in the September quarter surged 13% to ₹4,235 crore sequentially in the second quarter, from ₹3,751 crore in the first quarter of FY27.

Persistent Systems shares ended 0.98% lower at ₹5,840 apiece ahead of the IT company’s September quarter earnings announcement, compared to ₹5,898 apiece at the previous equity market close.

The company’s stock is expected to remain in focus of investors on Friday, October 16, as the firm posted its quarterly earnings report after market hours on Thursday.

Margins shrink

The financial statements also showed that Persistent’s earnings before interest, tax, depreciation, and amortisation (EBITDA) or operating profit increased 7.8% QoQ to ₹864 crore in the Q2 earnings, compared to ₹802 crore in the previous quarter of FY27.

On the margins front, the EBIT margins contracted to 15% in the period under review, in comparison to 16% in the previous quarter, according to the latest NSE filing.

Order book snapshot

Latest filings also showed that Persistent Systems’ order booking for the quarter ended on September 30, 2026, was $633.5 million in Total Contract Value (TCV) and $481.0 million in Annual Contract Value (ACV).

The company’s deal with Salesforce, among other AI capability expansions, remained a key focus of investors.

“We continue to strengthen our AI capabilities through our 3C framework and AI-driven platforms. Our focus is on developing Enterprise Context within our clients' environments that evolves with successive engagements and continues to grow in value as models, platforms and agents change,” said Sandeep Kalra, Chief Executive Officer and Executive Director of Persistent.

Persistent share price trend

NSE data showed that Persistent shares have delivered more than 454% returns to investors in the last five years, over 305% gains on their investment in the last three years, and more than 2% returns in the past one-year.

Although on a YTD basis, the stock has lost 7%, the shares have risen 6.6% in the last one-month period. The exchange data also showed that the shares have gained 6.8% in the last one-week period.

The company’s market capitalisation (m-cap) was at ₹92,126 crore as of the trading session on Thursday, October 15, 2026.