Persistent Systems reported a 25.4% annual drop in quarterly net profit after listing Nagarro acquisition costs, while revenue grew 20% to $487.6 million in the three months to Sept. 30.
Net profit was ₹3,515.14 million. The company’s investor presentation identified ₹1,853.4 million in “Exceptional Expenses – Nagarro Acquisition” and said the costs affected profit before tax, profit after tax and earnings per share. The audited statements said advisory, due-diligence, valuation and other transaction costs were included in “Other Expenses.”
The company provides services in digital engineering and enterprise modernization. Its board approved the audited results on Oct. 15.
Revenue in rupees rose 30.3% from a year earlier to ₹46,639.04 million, while constant-currency growth was 20.8%. Revenue also advanced 7.8% from the prior quarter, the 26th consecutive quarter in which Persistent recorded sequential growth. Earnings before interest and taxes increased 19.5% to ₹6,977.2 million, but the margin narrowed to 15% from 16.3% in the year-earlier quarter. Net profit was down 27.2% from the previous quarter.
Persistent’s operating profit after tax measure rose 5% year over year to ₹4,951.5 million. The investor presentation also listed a ₹455.8 million foreign-exchange loss. Quarterly bookings totaled $633.5 million in total contract value and $481 million in annual contract value, according to the company.
Persistent said its secured position represented about 94.04% of Nagarro’s share capital and voting rights, with treasury shares excluded. The offer’s additional acceptance period ended Oct. 6, after the quarter closed. Persistent said the transaction remained subject to regulatory approvals and expected it to close by the end of the first quarter of calendar 2027.
CEO and Executive Director Sandeep Kalra said the proposed deal fits Persistent’s long-term acquisition strategy, with the aim of adding engineering capabilities, reaching more markets and expanding delivery capacity.
