Persistent Systems reported an 8.7% sequential decline in Q1 net profit, while revenue rose over 6% on continued client spending.
The company recorded its highest-ever quarterly deal bookings, with total contract value touching $1.15 billion.
Management said the performance reflects strong demand for large deals and continued investments in AI capabilities.
Persistent Systems Q1 Profit Falls 8.7% QoQ Despite Strong Revenue Growth, Record Deal Wins
Revenue continued to grow in the June quarter, while the IT company's record deal bookings and a strategic services contract underscored strong business momentum despite a sequential decline in profit
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Summary
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Persistent Systems reported an 8.7% sequential decline in consolidated net profit for the first quarter of FY27, even as revenue continued to grow on the back of strong deal wins and healthy client spending, according to an exchange filing.
The IT services company posted a net profit of ₹483 crore for the quarter ended June 30, compared with ₹529 crore in the March quarter. Revenue from operations rose 6.1% quarter-on-quarter (QoQ) to ₹4,303 crore from ₹4,056 crore.
In dollar terms, revenue increased 3.8% sequentially and 16.1% year-on-year (YoY) to $452.4 million, extending the company's streak of quarterly revenue growth.
Margins Under Pressure Despite Revenue Growth
Persistent's operating performance softened during the quarter. Earnings before interest and tax (EBIT) fell nearly 12% sequentially to ₹582 crore from ₹659 crore, while the EBIT margin narrowed to 13.5% from 16.3% in the previous quarter.
The company said the sequential decline in profit was impacted by foreign exchange losses, even as revenue continued to improve.
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Trailing twelve-month attrition stood at 12.3%, while the company's shares had settled 0.62% higher at ₹5,549 on the NSE on Friday ahead of the earnings announcement.
Record Deal Wins Boost Outlook
Persistent reported its highest-ever quarterly order bookings, with Total Contract Value (TCV) reaching $1.146 billion and Annual Contract Value (ACV) at $536.8 million during the quarter.
Chief Executive Officer and Executive Director Sandeep Kalra said, "We marked our 25th sequential quarter of revenue growth to begin FY27, delivering 3.8% quarter-over-quarter and 16.1% year-over-year revenue growth."
He added that the performance was supported by a record quarterly TCV and continued momentum in large client engagements, including a 6.5-year strategic services agreement with a leading global technology company worth more than $650 million.
Kalra also said the company's proposed acquisition of Nagarro aligns with its long-term strategy to strengthen capabilities and expand its global presence. He added that Persistent will continue investing in AI-led platforms and enterprise solutions as businesses increasingly look to scale artificial intelligence across their operations.
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