Persistent Systems delivered robust financial results for Q1 FY27, achieving consolidated revenue of $452.4 million with 16.1% year-over-year growth and 3.8% quarter-over-quarter growth. The company reported EBIT of ₹6,868.8 crore with 32.7% YoY growth and 16.0% margin, while PAT stood at ₹4,830.4 crore with 13.7% YoY growth. The company marked its 25th sequential quarter of revenue growth and achieved a record quarterly Total Contract Value (TCV) of $1.15 billion. According to the latest earnings announcement, this performance was driven by continued momentum in larger client engagements, including a 6.5-year strategic services agreement with a leading global technology company worth more than $650 million.
Shareholders of IT services company Persistent Systems approved the acquisition of Nagarro SE through its subsidiary Galaxy Germany Holding SE at the company's Annual General Meeting. According to reports from The Hindu BusinessLine, the acquisition has received the requisite majority approval from shareholders, marking a significant milestone in the transaction process. The company has now signed a Business Combination Agreement with Nagarro, a leading European digital engineering company listed on the Frankfurt Stock Exchange, as reported in the latest earnings announcement. This transaction aligns with the company's consistently outlined M&A strategy to strengthen capabilities and expand geographic footprint and industry coverage.
Sandeep Kalra, Chief Executive Officer and Executive Director of Persistent Systems, expressed confidence in the strategic rationale behind the acquisition and recent performance. As reported by The Hindu BusinessLine, Kalra stated that "Persistent and Nagarro will build one of the world's leading AI-led digital engineering companies. Our complementary strengths make the strategic case clear, and we are glad our shareholders share our conviction." Kalra noted that the company marked its 25th sequential quarter of revenue growth, delivering strong performance with an EBIT margin of 16.0% and record quarterly TCV of $1.15 billion, reflecting continued momentum in larger client engagements.
The acquisition is strategically complementary, with Nagarro's strong presence in Europe and the Middle East and Persistent's strength in North America. As reported by The Hindu BusinessLine, the deal expands the combined entity's footprint in Japan and adds new industry verticals including manufacturing, consumer, retail, utilities and automotive. Together, banking and financial services and high-tech would each become nearly $750 million businesses. The companies share a similar entrepreneurial and innovation-led culture, with the focus on leveraging complementary strengths rather than workforce rationalization. Recent client wins demonstrate this expansion, including global transport technology ecosystem transformation and enterprise transformation across multiple sectors.
The new entity will focus on scaled, globally diversified AI-led digital engineering and enterprise modernisation, with presence in North America and Europe and exposure in other global markets. As reported by The Hindu BusinessLine, the combined group will support multi-region enterprise clients requiring integrated AI, engineering, ERP / CX, data and cloud capabilities across local and global delivery models. Persistent Systems has been recognized as the Fastest Growing IT Services brand globally in the 2026 Brand Finance IT Services 25 report, ranking as the 12th strongest brand among the world's Top 25 IT Services brands. The company maintains its position in key indices including the Nifty Midcap 50, Nifty IT, and Nifty MidCap Liquid 15 on NSE, and the S&P BSE 100 and S&P BSE SENSEX Next 50 on BSE.
