Persistent Systems Q1 Profit Declines Despite Continued Revenue Growth

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 $PERSISTENT reported a mixed performance for the first quarter of FY27. Consolidated net profit declined 9% sequentially to ₹483 crore from ₹529 crore in the previous quarter, primarily due to foreign exchange losses and lower operating margins. Despite the decline in profit, revenue from operations grew 6.1% quarter-on-quarter to ₹4,303 crore, reflecting continued demand for the company's digital engineering and technology services. The company's EBIT declined 11.8% to ₹582 crore, while the EBIT margin narrowed to 13.5% from 16.3% in the preceding quarter. Revenue in constant currency grew 3.8% sequentially and 16% year-on-year to $452.4 million. Persistent also reported a strong order pipeline, with Total Contract Value (TCV) bookings of $1.146 billion and Annual Contract Value (ACV) bookings of $536.8 million during the quarter. The company's trailing twelve-month attrition stood at 12.3%. Industry & Economic Impact: The results reflect continued demand for digital transformation, cloud, AI, and engineering services despite near-term pressure on profitability. Strong deal wins and steady revenue growth indicate that enterprises continue to invest in technology modernization, providing long-term growth opportunities for the IT services sector. From an economic perspective, sustained investment in technology services supports India's position as a global IT outsourcing hub, generates high-skilled employment, boosts software exports, and contributes significantly to foreign exchange earnings and economic growth. Source: NDTV Profit No Recommendations