Persistent Systems, a mid-tier IT services firm, heads into its Q2 FY 2026-2027 print with the margin bridge as the central tension: Q1 FY27 EBITDA margin compressed 274 bps QoQ to 16.19% after Nagarro acquisition-related costs. The quarter will speak to whether margins stabilise in the 16-17% band and how much of the record $1.1 billion Q1 deal TCV converts into billed revenue.
| Results date | October 15, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Market cap | Rs. 91,021.75 Cr |
| CMP | Rs. 5,770.0 |
Persistent Systems is scheduled to report its Q2 FY 2026-2027 results on October 15, 2026.
The key question for Q2 FY 2026-2027 is whether EBITDA margin stabilises after Q1 FY27's 274 bps QoQ compression to 16.19%, driven by Nagarro acquisition-related other expenses (up 78% YoY to Rs. 740 Cr) and finance costs (Rs. 29 Cr in Q1 vs Rs. 19 Cr in Q4 FY26). A ~1.0% further rupee weakening QoQ — the Q2 average of ~95.62/USD vs ~94.7 in Q1 FY27 — offers a modest tailwind of roughly 40-50 bps on the margin line, while the $4,000 H-1B extension fee effective September 9, 2026 and the $100,000 surcharge add partially to onshore delivery costs. On demand, Persistent entered Q2 with a record $1.1 billion TCV in Q1 FY27 (up from $520.8 million a year ago) and a CEO-guided $225-300 million quarterly deal-win run-rate, but Q1's 6.1% QoQ growth sets a high base and NASSCOM's September 2026 review shows sector North America revenue at just +3.6% y-o-y. Management's $2 billion FY27 revenue target — requiring ~19.6% FY27 growth — and the guided 200-300 bps long-term EBIT margin expansion over 2-3 years frame what the October 15, 2026 call will need to address.
Margin bridge and Nagarro cost trajectory: The guided EBIT expansion path is at stake after Q1's compression.
Deal conversion and US demand trajectory: Record Q1 deal wins need to show up in billed revenue.
Q1 FY27 EBITDA margin compressed 274 bps QoQ to 16.19% from 18.93% in Q4 FY26, driven by Nagarro acquisition-related other expenses and finance costs. The Q2 print will show whether margins stabilised in the 16-17% band, aided by a ~1.0% weaker rupee QoQ.
Persistent recorded a record TCV of $1.1 billion in Q1 FY27, up from $520.8 million a year ago. The CEO guided that the $225-300 million quarterly deal-win run-rate should continue.
The $1.6B bridge financing drawn in Q1 FY27 pushed finance costs up 56% QoQ to Rs. 29 Cr, while other expenses surged 78% YoY to Rs. 740 Cr on acquisition costs. The closing is guided by March 2027, and the call is expected to carry an update on integration costs.