Persistent Systems Ltd Signs Nagarro Merger Amid Record Contract Value

Persistent Systems Ltd reported a 13.67% increase in consolidated net profit to ₹483.04 crore for the first quarter of FY27, up from ₹424.93 crore the previous year. Revenue from operations grew 29% year-on-year to ₹4,303.22 crore, with North America contributing 79.1% of total revenue.

While yearly figures rose, the company saw an 8.7% sequential decline in net profit from ₹529 crore in the previous quarter, which the company attributed to forex losses. EBIT margins dropped from 16.3% to 13.5% as earnings before interest and taxes fell 11.8% to ₹582 crore.

CEO Sandeep Kalra attributed the overall performance to a record quarterly total contract value of $1.15 billion. This includes a 6.5-year strategic services agreement worth more than $650 million with a global technology company.

To expand its geographic footprint and industry coverage, Persistent Systems Ltd signed a business combination agreement with Nagarro SE, a European digital engineering firm listed on the Frankfurt Stock Exchange. The merger aims to create an AI-led global engineering entity with an estimated revenue run rate of $2.9 billion. The transaction is expected to close by Q4 CY26 or Q1 CY27.