Persistent Systems to raise Rs 9,000 cr via debt to fund Nagarro acquisition; Q2 profit drops 25%

IT firm Persistent Systems’ board of directors approved the issuance of short-term debt instruments to raise capital worth Rs 9,000 crore. The issuance of non-convertible debentures and commercial papers is being considered as part of long-term debt financing related to Persistent’s acquisition of Nagarro SE.

Persistent Systems to issue NCDs and CPs worth Rs 9,000 crore

The Pune-based firm has proposed to issue NCDs worth Rs 8,000 crore on a private allotment basis. The company said in its regulatory filing that these securities will be listed on the National Stock Exchange.

Also, Persistent Systems’ upper management has approved the issuance of commercial paper aggregating to Rs 1,000 crore. The IT firm will issue 20,000 CPs on a private basis. These will have a tenure of one year from the date of allotment and will be listed on NSE.

Persistent Systems Q2 FY27 result

For Q2 FY27, the tech firm posted a consolidated net profit of Rs 351 crore, down 25% year-on-year against Rs 471 crore reported in the year-ago period. On a sequential basis, its profit fell 27% from Rs 483 crore reported in the trailing quarter.

The IT firm’s consolidated revenue from operations for the quarter ended September jumped 30% YoY to Rs 4,663 crore as compared to Rs 3,580 crore reported in Q2 FY26. On a quarter-on-quarter basis, revenue expanded by 8% from Rs 4,303 crore reported in Q1 FY27.

Persistent Systems share price

Persistent Systems’ share price was down over 3% in Friday’s intraday trading session. Over the past one month, its stock has delivered a return of 2%.