PERSISTENT Q2 FY27 Results Analysis: PAT Plunges 25%, Margin Compresses 550 bps

Cofacto Research Published October 15, 2026 2 min read

Negative

PERSISTENT's Q2 FY27 numbers came in soft, with revenue of Rs. 4,663.90 Cr (+30.25% YoY) and PAT growth of -25.44% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	October 15, 2026
Quarter	Q2 FY 2026-2027
Revenue (Q2)	Rs. 4,663.90 Cr (+30.25% YoY)
PAT (Q2)	Rs. 351.51 Cr (-25.44% YoY)
EBITDA margin	13.58% (-550 bps YoY)
EPS (Q2)	Rs. 22.42 (-26.03% YoY)
Market cap	Rs. 92,850.90 Cr
CMP	Rs. 5,885.95

Quarter Snapshot

Persistent delivered 30.25% YoY consolidated revenue growth with all segments up 22-39%, but consolidated PAT fell 25.44% YoY as EBITDA margin compressed 550 bps to 13.58% on Nagarro acquisition costs (Rs.1,853.41 Mn in H1), doubled finance costs, and other expenses at 20.04% of revenue. The standalone business remains healthy with PAT up 5.23% YoY, while the Nagarro integration (94.04% stake secured) and its cost overhang dominate the consolidated picture. No management guidance numbers appear in the filing itself, so no guidance beat or miss can be established.

Key Investment Insights

Key Positives

Consolidated revenue grew 30.25% YoY to Rs.4,663.90 Cr and 8.38% QoQ
All three segments grew 22-39% YoY: BFSI +26.17%, Healthcare & Life Sciences +21.64%, Software Hi-Tech & Emerging +39.23% YoY (+14.0% QoQ)
Standalone PAT grew 5.23% YoY to Rs.482.89 Cr and standalone EBITDA grew 12.70% YoY
H1 FY27 CFO/PAT ratio of 1.11x with free cash flow of Rs.681.25 Cr; cash and equivalents rose to Rs.1,631.19 Cr (+63.0% YoY)
Group secured ~94.04% shareholding of Nagarro SE as of Oct 6, 2026
Consolidated net worth grew 20.17% YoY to Rs.8,589.43 Cr
BFSI segment margin held steady at 34.93% vs 34.91% a year ago

Risk Factors

Consolidated PAT declined 25.44% YoY and 27.23% QoQ to Rs.351.51 Cr
EBITDA margin compressed 550 bps YoY to 13.58% and fell 261 bps QoQ from 16.19% in Q1 FY27
Other expenses surged to 20.04% of revenue (+848 bps YoY) and rose a further 26.24% QoQ, driven by Nagarro acquisition costs of Rs.1,853.41 Mn in H1
Finance costs rose 108.96% YoY on Nagarro bridge financing of up to EUR 1,400 Mn; depreciation rose 66.61% YoY
Subsidiaries contributed a negative PAT of Rs.131.38 Cr in Q2 (18 subsidiaries reported net losses of Rs.240 Mn in Q2 and Rs.933 Mn in H1)
Segment EBIT margins compressed in two of three segments: Healthcare −322 bps YoY to 35.11% and Software Hi-Tech −461 bps YoY to 32.00%