Persistent Systems has announced that it will not conduct campus hiring in the financial year 2027. The mid‑tier IT services firm will instead recruit lateral hires that match its current demand, according to CEO and Executive Director Sandeep Kalra.
The company added that it has increased its headcount by 1,100 people in the April‑June quarter, bringing the total workforce to 28,640. Despite the expansion, the operating margin fell by about 30 basis points to 16 percent.
CFO Vinit Teresa explained that the margin dip was mainly due to hiring in anticipation of new deals and expected closures in the second quarter. He also noted that the company has maintained an utilisation rate of around 88 percent for the last few quarters.
Kalra said customers are keeping their technology budgets tight but are shifting spend toward artificial intelligence. The overall increase in spend is only 1 to 2 percent in different segments.
The focus on AI and automation allows customers to cut routine business costs while improving productivity, Kalra added. This shift is expected to help vendors like Persistent capture additional market share.
In Q1FY27, Persistent achieved its highest ever quarterly deal wins. Total contract value reached $1.15 billion, with an annual contract value of $536.8 million.
Financially, the company reported a net profit of Rs 483 crore, up 13.7 percent year‑on‑year for the quarter ended 30 June 2026. Sequentially, profit fell by 8.7 percent due to foreign exchange losses. Consolidated revenue rose to Rs 4,303.23 crore, up 29.1 percent YoY and 6.1 percent QoQ.
In June, Persistent signed a Business Combination Agreement with German digital engineering firm Nagarro, which is listed on the Frankfurt Stock Exchange. The merger will combine Persistent’s AI‑led engineering and cloud capabilities with Nagarro’s European digital engineering, ERP and customer experience expertise.
The combined entity will have an annual revenue run rate of about $2.9 billion and a workforce exceeding 46,000 employees across more than 40 countries. This partnership gives Persistent access to markets in Europe, the Middle East, Turkey, Japan and beyond.
Kalra said the regulatory filings are on track and the transaction is expected to close in the next three to four months. He will provide updates as the process moves forward.