Persistent Systems Q2 FY27 Transcript Released; Nagarro Acquisition Nears Closure
Persistent Systems released its Q2 FY27 investor call transcript. Revenue grew 20% YoY to USD 487.6 million. The Nagarro acquisition is nearing completion, with over 94% shares secured and expected closure by Q1-CY27. The company is investing in AI capabilities and reported strong deal wins.
The release of an investor call transcript, especially one detailing strong financial performance and significant strategic moves like an acquisition, has a high impact on investor perception and company valuation.
The company reported strong revenue growth, progress on a significant acquisition, and advancements in its AI offerings, all of which are positive indicators.
Persistent Systems Limited has released the transcript of the investor/analyst call held on October 15, 2026, for the quarter and half-year ended September 30, 2026. The transcript is also available on the company's website.
During the call, management provided a comprehensive update on the company's performance and strategic initiatives. Persistent Systems reported a healthy revenue growth of 7.8% quarter-on-quarter and 20% year-on-year, reaching USD 487.6 million for Q2 FY27. This marks the 26th consecutive quarter of revenue growth. In rupee terms, growth was 8.4% quarter-on-quarter and 30.3% year-on-year.
The company also provided updates on the acquisition of Nagarro, a European digital engineering firm. Persistent has secured approximately 94.04% of Nagarro's share capital, exceeding the minimum acceptance threshold. All merger control and FDI clearances are received, except for Austria and Spain, with approvals expected in the coming weeks. The company intends to raise USD 1.25 billion through debt and equity to replace the existing bridge loan, with shareholder approval already obtained. The acquisition is expected to close by Q4-CY26 or Q1-CY27. One-time expenses related to the transaction are estimated at approximately $50 million, spread over three to four quarters, impacting reported EPS by about 3.1% in Q2 FY27.
Persistent Systems highlighted its AI capabilities, particularly the "Software Reinvention Services" offering, designed to help enterprise software companies accelerate next-generation products and modernize legacy systems. The company also reported significant deal wins across various industry segments, including a large engagement with a leading hyperscaler for legacy modernization and a partnership with a Fortune 500 US insurer for AI-led modernization of its policy administration platform.
Financial highlights for Q2 FY27 include EBIT margins at 15%, with a year-on-year growth of 19.5%. Operating profit after tax was 10.6%, and reported profit after tax was 7.5%, impacted by one-time expenses related to the Nagarro acquisition. The company maintained a strong cash position of approximately $315 million as of September 30, 2026.
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Persistent Systems Limited filed this with the NSE as a statutory disclosure, categorised under concall transcript released. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Persistent Systems Limited. Read the original for the full detail.