Persistent Systems

“Coming to the order book for the quarter, the total contract value for the quarter stood at USD 633.5 million, with total contract value of new bookings coming in at USD 367.1 million.”

“The annual contract value of bookings for this quarter was USD 481 million, out of which the annual contract value from new bookings contributed to USD 262.3 million.”

“A strong validation of Software Reinvention Services is the large deal we signed last quarter, a 6.5-year engagement worth more than $650 million with one of the largest technology companies spanning product development support and cloud operations across multiple SaaS products.”

“A leading hyperscaler has selected Persistent as a preferred partner for its newly formed forward-deployed engineering organization to scale legacy modernization and transformation programs.”

“A Fortune 500 US insurer has selected Persistent as its AI-led modernization partner for its personal lines policy administration.”

“Revenue in Europe declined 8.5% largely because of two client-specific events.”

“Both are one-off, client-specific events rather than a sign of broader geographic demand trends.”

“North America revenue grew by 22.5%.”

“Revenue in India grew by 19.4% and the rest of the world grew by 67% although on a smaller base.”

“This quarter's growth was led by Software, High-Tech and Emerging verticals coming in at 28.5% followed by Banking, Financial Services and Insurance at 16.2% and Healthcare and Lifesciences vertical at 12% respectively on a year-on-year basis.”

“Our top 5 customers' revenue grew by 38.9%, top 10 by 29.9%, top 20 by 25%, top 50 by 24% and top 100 by 21.6%.”

“Now in terms of the outlook our pipeline is healthy, we don't give forward looking guidance but we are relatively confident that all the segments will kind of grow very well.”

“And since we work with them, we are very comfortable taking the same to the BFSI and Healthcare Life Sciences verticals, which are a little slower in adoption”

“we are seeing a very healthy pipeline and we are relatively hopeful of growing that customer much bigger.”

“Those in USD 10 million plus category increased from 25 to 34.”

“EBIT for this quarter was Rs.6,977.2 million, translating to a growth of 19.5% year-on-year. EBIT margins for Q2 FY27 came in at 15%, 130 basis points declined year-on-year.”

“As you would remember, this is the quarter when we have the yearly wage hike coming into effect. This impacted our margins by 180 basis points. However, lower ESOP costs enabled us to absorb part of this impact, leaving us with a net impact of 140 basis points.”

“Lower utilization led to a 20 basis impact on our EBIT margins.”

“This investment in the third-party tools and licenses led to an increase in the quarterly amortization of approximately USD 4 million, which had an impact of 90 basis points on our Q2 EBIT margin.”

“As we optimize the spend and our revenue scales in future, the impact on our margins will gradually reduce.”

“During the quarter, we had higher finance charges on account of higher receivables financing.”

“We are happy to report that we had record collections during the quarter which helped to improve the cash position in spite of payment of final dividend and exceptional expenses related to Nagarro transactions.”

“Total cash and investments stood at Rs. 29,996.7 million, around $315 million as of September 30, 2026 as against Rs. 27,044 million at the end of the previous quarter.”

“The billed DSO decreased to 50 days as against 61 days in the previous quarter,”

“OCF to PAT improved to 96.6% in Q2 FY27 compared to 76.2% in the previous quarter.”

“In terms of financing, we intend replacing the Euro 1.4 billion 18-month bridge loan with longer tenure, capital and favorable terms.”

“We have received the shareholder approval for the above funding mix at the Extraordinary General Meeting held on October 5th.”

“We have secured approximately 94.04% of Nagarro share capital excluding treasury shares at the expiry of the additional acceptance period, significantly exceeding the minimum acceptance threshold of 50% + 1 share that we had set.”

“Having secured more than 90% of Nagarro share capital and voting rights, we intend doing a squeeze out of the remaining minority shareholders of Nagarro upon closing.”

“with over $2.9 billion in revenue run rate and 46,000 plus professionals across 40 countries.”

“From a merger control clearance perspective, we have received all merger control clearances and all FDI clearances other than Austria and Spain.”

“We expect the deal closure by Q4-CY26 or Q1-CY27.”

“I would like to point out that the reported PAT includes exceptional one-time expenses as part of Nagarro acquisition, resulting in approximately 3.1% impact for the quarter.”

“We incurred transaction costs worth Rs. 1,853.4 million towards the Nagarro acquisition in this quarter.”

“Yeah, so this 50 million is basically a combination of multiple. It is a combination of the investment banking fees, the bridge loan commitment costs, there are legal lawyer costs, we are doing application of regulatory filings in various geographies, various travel involved with that.”

“million is what basically is incurred in Q2. And as I said, 25 to 30 million will be incurred over the next 3 to 4 quarters.”

“Forward contracts outstanding as of 30th September, 2026 were USD 500 million at an average rate of 95.6 per dollar.”

“We had a few deals that slipped over into this quarter, no excuses, we could have done better. But yes, the macro does impact us. The slowdown of decision making in the last few weeks was pretty apparent.”

“And some of these get impacted when the Middle East dynamics kind of go up or down.”

“We achieved a healthy revenue growth of 7.8% quarter-on-quarter and 20% year-on-year delivering USD 487.6 million in Q2 FY27.”

“Also, as you may be aware, our ESOP vesting criteria for our team members is conditional on achieving a 12% revenue growth and a 12% EPS growth. In line with this, the Board may seek shareholders' approval to treat these one-time transaction related expenses as an exception when assessing the ESOP vesting conditions.”

“our total headcount stood at 29,598, an increase of 958 from previous the quarter.”

“Utilization stood at 85.8%, down 70 basis sequentially, primarily reflecting proactive hiring to support the ramp-up of large deals.”

“Trailing 12-months attrition stood at 11.9% compared to 12.3% in the previous quarter.”