EBIT margin dips to 13.5% in Q1 FY27 amid lower earnings for Persistent Systems

Mumbai, Aug 2 — In its Q1 FY27 earnings release, Persistent Systems Ltd disclosed that EBIT fell to ₹58.2 billion, a decline of 11.8% from the previous quarter. The resulting EBIT margin slipped to 13.5%, down 280 basis points from 16.3% recorded in the March quarter of FY26.

The margin pressure was largely attributed to higher payroll and development costs as the firm accelerated investment in its AI‑based platforms and the 3C framework (cloud, cognitive, commerce). Despite the margin dip, revenue grew 6.1% year‑on‑year to ₹4,303 billion, driven by robust demand for digital engineering and cloud services.

Net profit for the quarter stood at ₹48.3 billion, an 8.7% decline from ₹52.9 billion a quarter earlier, reflecting the same cost dynamics that affected EBIT.

Sandeep Kalra, the company’s CEO and Executive Director, emphasized that a record total contract value of $1.15 billion and a strategic 6.5‑year agreement with a global technology leader provided a strong order backlog, positioning Persistent for margin recovery in later quarters.

He also highlighted a new business combination agreement with Nego, a European digital engineering firm, which aligns with Persistent’s long‑term strategy of expanding geographical reach and industry coverage while enhancing its AI‑driven service portfolio.