Persistent Systems Limited – Investor Presentation Summary

Key Operational Highlights

  • Q1 FY27 Revenue: $452.4M with 16.1% YoY growth
  • 28,640 employees as of June 30, 2026
  • 24,850+ Partner Certifications
  • 9,450+ AI/ML/GenAI External Certifications
  • 25 consecutive quarters of sequential revenue growth since FY2021

Key drivers of operational performance: AI-led, platform-driven digital engineering and enterprise modernization services, strengthened capabilities with focused learning & development initiatives

Segment-wise Performance

Industry vertical performance:

  • Software & Hi-Tech: 9 of 10 Top Technology Companies
  • Banking, Financial Services & Insurance: 7 of 10 Top US Banks, 5 of 10 Top Indian Banks, 5 of 10 Top FinTech Companies
  • Healthcare & Life Sciences: 6 of 10 Top Scientific Instruments & Medical Devices Companies, 4 of 10 Top Pharmaceutical Companies, 3 of 10 Top Health Providers & Payers, 5 of 10 Top Clinical Research Organizations
  • 18 of 50 Fortune 50 companies

Explanation of significant changes in segment performance: Broad-based momentum across industry segments with deepening strategic client relationships

Financial Highlights

Revenue: $452.4M (Q1 FY27)

TTM Revenue: $1,717.1M (+16.8% YoY)

EBIT Margin: 16.0% (+32.7% YoY)

PAT Margin: 11.2% (+13.7% YoY)

YoY/QoQ comparison: QoQ growth of 3.76%, YoY growth of 16.07%

Drivers of financial performance: Sustained growth and profitability, scalable and differentiated Go-To-Market strategy, efficient capital allocation

Comparison to market estimates: Outperformed Indian IT peers by 3.24% QoQ and 12.63% YoY in Q1FY27

Key Risks: Fluctuations in earnings; ability to manage growth; intense competition in IT services industry; significant dependence on customers located in United States; wage increases in India; ability to attract and retain highly skilled professionals; time and cost overruns on fixed-price contracts; client concentration; immigration restrictions; ability to manage international operations; reduced demand for technology in key focus areas; telecommunications disruptions; ability to complete and integrate potential acquisitions successfully; liability for damages under service contracts; concentration of major operations in one city; withdrawal of governmental fiscal incentives; political instability; legal restrictions on raising capital or acquiring companies outside India; unauthorized use of intellectual property; general economic conditions

Geographical Revenue Split

Not Specified

Balance Sheet Snapshot

Market Capitalization: $9.3B

Financial Health Insights: Strong cash flow generation, improved liquidity

Capex & Cash Flow Health

Not Specified

Strategic & R&D Initiatives

Investments in Innovation: AI-led, platform-driven digital engineering and enterprise modernization, 3C framework that turns AI investments into Enterprise ROI

Expected impact on growth: Expand share of wallet in existing clients and acquire new clients, strengthen AI-first enterprise transformation across verticals, geographic expansion across client base and delivery locations

Strategic Rationale: Creating repeatable, IP-led solutions across industries, deepening strategic partnerships with hyperscalers/enterprise software leaders, building AI-ready talent and delivery excellence

Industry Trends & Business Environment

Macro/Industry Trends: Accelerating demand for AI, particularly in growth geographies like Europe

Impact on Company: Driving expansion into high-growth markets, development of localized offerings combining geography-specific domain expertise with global delivery scale

Management Commentary & Growth Outlook

Strategic Outlook: Expand share of wallet in existing clients and acquire new clients; Strengthen AI-first enterprise transformation across verticals; Geographic expansion across client base and delivery locations; Pursue selective value-accretive M&A; Consistently strengthen capabilities along with disciplined execution

FY Guidance: Not Specified

Market Share Targets: Not Specified

Risks and Opportunities: Completion of Nagarro acquisition remains subject to satisfaction or waiver of conditions including required regulatory, shareholder and other third-party approvals

Acquisition of Nagarro

Transaction Details: Persistent has agreed to acquire 100% of Nagarro at Enterprise Value of ~€1.27B, based on €81 per share in cash; Premium of ~140% to undisturbed closing price on June 25, 2026; Transaction values Nagarro at 1.27X EV/CY25A Revenue and 9.19X EV/CY25A Adjusted EBITDA; Persistent has secured ~21% stake in Nagarro via share purchase agreement; Minimum acceptance threshold for open offer: 50% + 1 share

Nagarro Business Overview: €999.3M CY2025 Revenue with 2.8% YoY growth; €138.2M CY2025 Adjusted EBITDA with 13.8% margin; 18,003 professionals across 38 countries; AI-first diversified digital engineering business delivering full-stack solutions; Portfolio of over 1,000 clients across 72 countries; Strong European presence across Automotive, Manufacturing, Industrial, Retail, CPG, Financial Services, Insurance, Travel and Logistics

Strategic Rationale: New dimension of scale with global talent of 18,003 employees; Expanded capabilities in AI, digital, product design, ERP and CX; Geographic diversification with expanded presence across Europe, Middle East and Asia; Broader vertical depth across established capabilities; Strong cultural fit between both organizations