PSPersistent Systems533179Earnings call transcript

Q2 FY27 call: revenue USD 487.6 million, EBIT margin 15%, order book USD 633.5 million

Transcript of the October 15, 2026 earnings call for Q2 FY27 shared with the exchanges.

By ScoutQuest · Fri 23 Oct 2026, 8:45 PM IST · 2 min read

Revenue

USD 487.6 million, up 7.8% QoQ and 20% YoY

EBIT margin

15%

Order book

TCV USD 633.5 million; ACV of bookings USD 481 million

Quarter in numbers

• Revenue came in at USD 487.6 million, a growth of 7.8% quarter-on-quarter and 20% year-on-year.
• EBIT margin for the quarter was 15%.
• Reported profit after tax margin was 7.5%. Management said reported PAT includes one-time exceptional expenses relating to the Nagarro acquisition, which had an impact of about 3.1% on reported PAT for the quarter.

Order book and bookings

• Total contract value (TCV) for the quarter stood at USD 633.5 million.
• Annual contract value (ACV) of bookings for the quarter was USD 481 million.
• Management clarified that TCV and ACV include all bookings, large and small, renewals as well as new bookings, across existing and newer customers. Revenue conversion in any quarter depends on ACV bookings closed in earlier quarters and on conversion from multi-year deals booked in earlier years.

Geography

• North America, India and the rest of the world grew year-on-year, the last on a smaller base.
• Europe declined. Management attributed this to two client-specific events: a key European client was acquired by a larger strategic, leading to a ramp-down of the program over several quarters, and another engagement completed its planned ramp-down under a fixed-price engagement. Both were described as one-off, client-specific events rather than a sign of broader geographic demand trends.

Industry segments

• Software, High-Tech and Emerging led growth for the quarter, followed by Banking, Financial Services and Insurance and Healthcare and Lifesciences.
• Growth in Software, High-Tech and Emerging was supported by the Software Reinvention offering launched during the quarter, built on the theme of the large deal announced last quarter.

Client metrics

• Revenue from the top 5, top 10, top 20, top 50 and top 100 customer buckets each grew year-on-year.
• Customer counts in the mid-sized revenue buckets increased while the largest buckets stayed stable. Management read this as deeper, more resilient customer relationships over time.

What management flagged

• High-tech is the industry most affected by advances in AI, and both enterprise software companies and enterprises are rethinking how software is built and maintained.
• The Software Reinvention offering is positioned to help software and technology companies deliver AI-native software.
• The call covered the Q2 results, the Nagarro acquisition, financial and operational metrics, expansion of AI capabilities with representative AI wins, and key deal wins and awards for the quarter.

The other side of the numbers

• The reported profit after tax line carries one-time exceptional costs tied to the Nagarro acquisition, so it sits below the operating profit after tax margin for the quarter.
• The European decline is specific to two client programs, but it is a decline nonetheless and offset part of the growth seen in other geographies.

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