Persistent Systems Ltd. announces an acquisition
TL;DR
What is the acquisition multiple (EV/Revenue and EV/EBITDA) paid for Nagarro based on the transaction value disclosed in the presentation, and how does this valuation align with Persistent’s historical M&A multiples?
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In the Q1 FY2027 performance update, what was the specific impact of the Nagarro consolidation on Persistent’s consolidated EBIT margins, and how much of the reported revenue growth is attributable to inorganic contribution versus organic growth?
Nagarro had no impact on Q1 FY2027 consolidated EBIT margins. The transaction was still pending completion, with closing expected in Q4 CY26 or Q1 CY27 [1]. Therefore, the reported Q1 FY27 EBIT margin of 16.0% [2] did not include Nagarro.
Revenue-growth bridge, on the presentation’s reported USD basis:
- Q1 FY27 revenue: USD 452.4 million, up 16.1% YoY [2].
- Nagarro inorganic contribution: 0.0 percentage points, derived from its not yet being consolidated in Q1.
- Organic contribution: the full reported 16.1% YoY growth, on a Nagarro-specific basis.
The important caveat is that the update does not provide a company-wide organic-versus-inorganic bridge covering any other prior acquisitions. Accordingly, 16.1% should be described as organic with respect to Nagarro, rather than as proof that every component of Persistent’s growth was organic.
What specific integration costs or restructuring charges have been recognized in the Q1 FY2027 financials related to the Nagarro acquisition, and what is the confirmed timeline for the realization of the cost synergies outlined in the presentation?
No Nagarro-related integration costs or restructuring charges are separately identified in the Q1 FY2027 financial disclosures. The presentation reports Q1 FY2027 revenue, EBIT margin and PAT margin, but does not provide an acquisition-related cost line, amount, or expense bridge that can be attributed to Nagarro [2]. Therefore, there is no disclosed Q1 FY2027 charge that can be quantified from the presentation.
Synergy timing is not confirmed. The presentation confirms only the transaction timetable:
- The additional acceptance period was scheduled to end on 6 October 2026, followed by announcement of the acceptance results.
- Transaction closing was expected in Q4 CY2026 or Q1 CY2027, subject to regulatory, shareholder and other conditions [1].
That closing window should not be interpreted as a cost-synergy realization date. The presentation does not provide a dated ramp-up, annualized synergy target, or milestone for when integration savings are expected to appear in reported margins. It describes integration benefits as forward-looking and subject to execution risk, without committing to a specific realization schedule [3].
Bottom line: Q1 FY2027 contains no separately disclosed Nagarro integration or restructuring charge, and the only confirmed timing is for transaction completion—not for realization of cost synergies.
Sources
- [1]Persistent Systems Investor Presentation: Nagarro Acquisition and Q1 FY2027 Performance Update — 2026-09-28T19:44:25, p.27
- [2]Persistent Systems Investor Presentation: Nagarro Acquisition and Q1 FY2027 Performance Update — 2026-09-28T19:44:25, p.5
- [3]Persistent Systems Investor Presentation: Nagarro Acquisition and Q1 FY2027 Performance Update — 2026-09-28T19:44:25, p.3
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