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Persistent Systems Achieves Remarkable Q1 FY27 Revenue

Persistent Systems (BSE: 533179), listed on the NSE under the symbol PERSISTENT, announced its robust financial results for the first quarter of fiscal year 2027, unveiling a remarkable revenue of $452.4 million. This figure represents an impressive growth of 16.1% compared to the same period last year. The board approved audited financial results showcase a continuation of the company's growth trajectory, marking 25 consecutive quarters of increasing revenues.

Quarterly Financial Highlights

During this quarter, the revenue growth was not only reflective of persistent demand but also a result of the company’s strategic initiatives to expand its product offerings. Specifically, there was a 3.8% increase from the previous quarter, highlighting steady progress across the board. Further insights into the financial performance include a 16.0% EBIT margin, significantly indicating operational efficiency.

• - Revenue: $452.4 million
• - Growth (Quarter-on-Quarter): 3.8%
• - Year-on-Year Growth: 16.1%

In terms of local currency, the revenue amounted to approximately ₹43,032.3 million. The EBIT (Earnings Before Interest and Taxes) stood at ₹6,868.8 million, experiencing a 16.0% growth compared to the last year.

Strategic Business Developments

The quarter was also marked by substantial strategic milestones, including a record total contract value (TCV) of $1.15 billion, which demonstrates the company's dynamic business capability and its appeal among larger clients. One of the standout contracts was a 6.5-year service agreement valued at over $650 million, signed with a leading technology company.

Persistent Systems has also entered into a merger agreement with Nagarro, a prominent player in the European digital engineering sector. This strategic alliance is aligned with Persistent's proactive mergers and acquisitions strategy aimed at bolstering its competencies and expanding its market reach.

Focus Areas and Client Wins

The company continues to emphasize AI-driven solutions, enabling organizations to scale their capabilities. Noteworthy achievements during Q1 include:

• - Enhancing SaaS product support using advanced AI platforms for a major IT firm, improving resilience and operational excellence.
• - Facilitating technology transformations in transportation sectors to aid global mobility providers in achieving operational efficiencies.
• - Modernizing enterprise applications for leading insurance management firms, which enhances their efficiency and accelerates their adoption of AI technologies.

The focus on industries such as healthcare has also paid dividends, with improvements made through the consolidation of automation processes across critical operations.

Future Prospects

As Persistent Systems navigates its path forward, it is committed to reinforcing its service offerings and investing in capabilities under its 3C framework (Cloud, Communication, and Collaboration) and AI-powered platforms. Sandeep Kalra, the CEO of Persistent, emphasizes the importance of creating a unified enterprise context that integrates business logic, data, and experience across the organization. This approach is seen as vital for creating smarter business models that can deliver maximum value from AI initiatives.

Commitment to Sustainability and Social Responsibility

Persistent is dedicated to maintaining a sustainable business environment; it has achieved CO2 neutrality and was recently recognized as one of America's Greatest Workplaces for Inclusion and Diversity. The company aims to align its business strategies with universal principles across human rights, labor standards, and environmental sustainability as part of its commitment to the UN Global Compact.

Persistent Systems' trajectory indicates a strong positioning in the technology landscape, backed by its financial performance and innovative strategies. The quarterly results not only highlight its operational successes but also set the stage for future growth opportunities.

For more information about Persistent Systems, visit www.persistent.com.