Persistent Systems
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Clients clamour for steep price cuts and more productivity in AI era
Outcome-based contracts increasingly popular over billable-hour model
Nimble mid-tier firms win business as AI levels playing field
Some firms said to be making irrational decisions to please clients
By Sai Ishwarbharath B, Abhirami G and Haripriya Suresh
BENGALURU, August 21 (Reuters) - Artificial intelligence promised to disrupt India's IT industry and it is delivering.
Outsourcing giants like Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS, HCLTech HCLT.NS and Cognizant CTSH.O are rejigging business models, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.
Industry executives also say they are losing some work entirely as customers use AI to shift tasks in-house, while all the uncertainty that the new technology has brought is resulting in shorter contracts.
And where once the big IT companies won contracts because they could point to their huge employee base, that has become less and less of an advantage as AI automates more and more tasks — levelling the playing field for smaller rivals which have jumped at opportunities to snatch business.
"It's a desperate market for the service providers. The odds are very much in favour of clients," said Jimit Arora, CEO of research and advisory firm Everest Group.
Software companies globally have been battered by worries that AI will render key parts of their business obsolete, but India's IT industry — worth $315 billion in annual revenue — is the most obvious victim with its traditional reliance on billable hours.
The Nifty IT index .NIFTYIT has tumbled by a fifth this year, with its 10 constituents losing a combined $73 billion in market value.
CONTRACTS SHIFT TO MEASURABLE OUTCOMES
These days, pricing for contracts is more likely to be dictated by performance outcomes.
TCS Chief Executive K Krithivasan told Reuters that about 80% of the company's contracts within its finance, human resources and other business services segment are now based on outcome performance measures.
That number represents a doubling since AI went mainstream in late 2023, said a person with knowledge of the matter, who was not authorised to speak to media and declined to be identified. TCS did not respond to a request for comment.
Other examples in the industry include an AI and automation deal Cognizant CTSH.O struck with Daimler Truck DTGGe.DE in February. It stipulated AI-related cost savings would be split between the vendor and the client, according to people familiar with the terms.
"With AI, the fundamentals are shifting," Cognizant said in a statement to Reuters, though it declined to comment on specific contracts. "Clients now expect more value and measurable outcomes, and we are re-forging our model for that reality."
Daimler Truck did not respond to a request for comment.
A separate multiyear cloud management deal forged in June 2025 was structured so HCLTech will not be paid by German utility E.ON EONGn.DE for the first year, with payments from the second year tied to efficiency gains and specific business outcomes, according to two people familiar with the agreement.
E.ON declined to comment, while HCLTech did not respond to a request for comment.
CLIENTS WANT MORE BANG FOR THEIR BUCK
As AI drives productivity gains, clients have become increasingly vocal about getting more for less.
Persistent Systems PERS.NS CEO Sandeep Kalra told Reuters that the IT provider's clients were demanding the same work for 25% to 30% less while expecting faster delivery and higher productivity.
But on the plus side, AI is helping Persistent win larger deals than it would have previously.
"The demarcation of a scale player only by revenue is not necessarily a big thing today," he said.
IT executives and analysts alike say competition from mid-sized firms has become brutally fierce.
Many customers now want rapid development of pilot programmes and smaller firms are winning mandates by deploying senior leaders quickly and offering flexible pricing, says Phil Fersht, CEO and chief analyst at HFS Research.
"Many Tier 2 firms have been more agile and hungry in this phase," he said.
Both Persistent and Coforge COFO.NS, another mid-sized IT services provider, have seen revenue in dollar terms grow by double digits for at least eight quarters in a row. In April-June, revenue for Persistent surged 16%, while Coforge's sales jumped by a third.
In contrast, TCS, Infosys, Wipro and HCLTech had subdued growth of 1% to 3%.
IRRATIONAL EXUBERANCE?
As pressure from clients grows, some firms are making rash decisions, says Tech Mahindra TEML.NS CEO Mohit Joshi.
Some rivals are factoring in productivity gains of 70% to 80% over five to seven years and guaranteeing prices despite rising chip costs, Joshi told an analysts' call last month, adding that his company had chosen not to take such risks.
"Clearly, there is a ton of competition out there, and our competition at times is doing irrational things," he said.
Infosys last month also told analysts it had walked away from contracts that were no longer economically viable.
TCS's Krithivasan said that so far the company has been able to offset AI-related downward pressure on revenue with new work.
"But how fast and how much more we are able to go ahead of the (revenue) deflation will determine the growth going forward," he added.
TCS is also boosting its numbers of engineers who embed with clients to accelerate AI adoption and is hunting for AI acquisitions.
It is thus far the only Indian IT services provider to have announced mass layoffs in the AI era, implementing cuts of more than 12,000 last year. But companies have flagged that their traditional role as huge hirers of new recruits may be winding down.
The country's IT giants will no longer need large ranks of entry-level engineers, according to former Infosys CFO V. Balakrishnan.
"The pyramid model is gone. With coding agents, we no longer need basic coding," he said.
(Reporting by Sai Ishwarbharath B, Abhirami G and Haripriya Suresh in Bengaluru; Editing by Dhanya Skariachan and Edwina Gibbs)
Clients clamour for steep price cuts and more productivity in AI era
Outcome-based contracts increasingly popular over billable-hour model
Nimble mid-tier firms win business as AI levels playing field
Some firms said to be making irrational decisions to please clients
By Sai Ishwarbharath B, Abhirami G and Haripriya Suresh
BENGALURU, August 21 (Reuters) - Artificial intelligence promised to disrupt India's IT industry and it is delivering.
Outsourcing giants like Tata Consultancy Services TCS.NS, Infosys INFY.NS, Wipro WIPR.NS, HCLTech HCLT.NS and Cognizant CTSH.O are rejigging business models, increasingly tying fees to performance outcomes instead of hours worked, as clients demand steep price cuts and more productivity.
Industry executives also say they are losing some work entirely as customers use AI to shift tasks in-house, while all the uncertainty that the new technology has brought is resulting in shorter contracts.
And where once the big IT companies won contracts because they could point to their huge employee base, that has become less and less of an advantage as AI automates more and more tasks — levelling the playing field for smaller rivals which have jumped at opportunities to snatch business.
"It's a desperate market for the service providers. The odds are very much in favour of clients," said Jimit Arora, CEO of research and advisory firm Everest Group.
Software companies globally have been battered by worries that AI will render key parts of their business obsolete, but India's IT industry — worth $315 billion in annual revenue — is the most obvious victim with its traditional reliance on billable hours.
The Nifty IT index .NIFTYIT has tumbled by a fifth this year, with its 10 constituents losing a combined $73 billion in market value.
CONTRACTS SHIFT TO MEASURABLE OUTCOMES
These days, pricing for contracts is more likely to be dictated by performance outcomes.
TCS Chief Executive K Krithivasan told Reuters that about 80% of the company's contracts within its finance, human resources and other business services segment are now based on outcome performance measures.
That number represents a doubling since AI went mainstream in late 2023, said a person with knowledge of the matter, who was not authorised to speak to media and declined to be identified. TCS did not respond to a request for comment.
Other examples in the industry include an AI and automation deal Cognizant CTSH.O struck with Daimler Truck DTGGe.DE in February. It stipulated AI-related cost savings would be split between the vendor and the client, according to people familiar with the terms.
"With AI, the fundamentals are shifting," Cognizant said in a statement to Reuters, though it declined to comment on specific contracts. "Clients now expect more value and measurable outcomes, and we are re-forging our model for that reality."
Daimler Truck did not respond to a request for comment.
A separate multiyear cloud management deal forged in June 2025 was structured so HCLTech will not be paid by German utility E.ON EONGn.DE for the first year, with payments from the second year tied to efficiency gains and specific business outcomes, according to two people familiar with the agreement.
E.ON declined to comment, while HCLTech did not respond to a request for comment.
CLIENTS WANT MORE BANG FOR THEIR BUCK
As AI drives productivity gains, clients have become increasingly vocal about getting more for less.
Persistent Systems PERS.NS CEO Sandeep Kalra told Reuters that the IT provider's clients were demanding the same work for 25% to 30% less while expecting faster delivery and higher productivity.
But on the plus side, AI is helping Persistent win larger deals than it would have previously.
"The demarcation of a scale player only by revenue is not necessarily a big thing today," he said.
IT executives and analysts alike say competition from mid-sized firms has become brutally fierce.
Many customers now want rapid development of pilot programmes and smaller firms are winning mandates by deploying senior leaders quickly and offering flexible pricing, says Phil Fersht, CEO and chief analyst at HFS Research.
"Many Tier 2 firms have been more agile and hungry in this phase," he said.
Both Persistent and Coforge COFO.NS, another mid-sized IT services provider, have seen revenue in dollar terms grow by double digits for at least eight quarters in a row. In April-June, revenue for Persistent surged 16%, while Coforge's sales jumped by a third.
In contrast, TCS, Infosys, Wipro and HCLTech had subdued growth of 1% to 3%.
IRRATIONAL EXUBERANCE?
As pressure from clients grows, some firms are making rash decisions, says Tech Mahindra TEML.NS CEO Mohit Joshi.
Some rivals are factoring in productivity gains of 70% to 80% over five to seven years and guaranteeing prices despite rising chip costs, Joshi told an analysts' call last month, adding that his company had chosen not to take such risks.
"Clearly, there is a ton of competition out there, and our competition at times is doing irrational things," he said.
Infosys last month also told analysts it had walked away from contracts that were no longer economically viable.
TCS's Krithivasan said that so far the company has been able to offset AI-related downward pressure on revenue with new work.
"But how fast and how much more we are able to go ahead of the (revenue) deflation will determine the growth going forward," he added.
TCS is also boosting its numbers of engineers who embed with clients to accelerate AI adoption and is hunting for AI acquisitions.
It is thus far the only Indian IT services provider to have announced mass layoffs in the AI era, implementing cuts of more than 12,000 last year. But companies have flagged that their traditional role as huge hirers of new recruits may be winding down.
The country's IT giants will no longer need large ranks of entry-level engineers, according to former Infosys CFO V. Balakrishnan.
"The pyramid model is gone. With coding agents, we no longer need basic coding," he said.
(Reporting by Sai Ishwarbharath B, Abhirami G and Haripriya Suresh in Bengaluru; Editing by Dhanya Skariachan and Edwina Gibbs)
Persistent Systems scheduled one-on-one virtual meetings with Premji Invest on August 20 and MFS International, Singapore, on August 24, with both sessions set for 11:30am IST. The company said it would reiterate information communicated during its August 3 earnings call for the quarter ended June 30 and would not share unpublished price-sensitive information. In the same first-quarter FY27 results cycle, Persistent had scheduled sessions with Carnegie Fonder for August 14 and Cregis for August 18. The company reported quarterly revenue of $452.4m, up 16.1% year on year in constant currency, while total contract value reached a record $1.146bn.
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Persistent Systems scheduled one-on-one virtual meetings with Premji Invest on August 20 and MFS International, Singapore, on August 24, with both sessions set for 11:30am IST. The company said it would reiterate information communicated during its August 3 earnings call for the quarter ended June 30 and would not share unpublished price-sensitive information. In the same first-quarter FY27 results cycle, Persistent had scheduled sessions with Carnegie Fonder for August 14 and Cregis for August 18. The company reported quarterly revenue of $452.4m, up 16.1% year on year in constant currency, while total contract value reached a record $1.146bn.
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Aug 14 (Reuters) - NAGARRO SE NA9n.DE:
CLOSING OF OFFER IS ANTICIPATED IN Q4 CALENDAR YEAR 2026 OR Q1 CALENDAR YEAR 2027
OFFER PRICE OF EUR 81.00 PER SHARE CONSIDERED TO BE ADEQUATE AND FAIR
MANAGEMENT BOARD AND SUPERVISORY BOARD RECOMMEND ACCEPTANCE OF VOLUNTARY PUBLIC TAKEOVER OFFER BY PERSISTENT
Further company coverage: [NA9n.DE]
(Gdansk Newsroom)
(([email protected]; +48 58 769 66 00;))
Aug 14 (Reuters) - NAGARRO SE NA9n.DE:
CLOSING OF OFFER IS ANTICIPATED IN Q4 CALENDAR YEAR 2026 OR Q1 CALENDAR YEAR 2027
OFFER PRICE OF EUR 81.00 PER SHARE CONSIDERED TO BE ADEQUATE AND FAIR
MANAGEMENT BOARD AND SUPERVISORY BOARD RECOMMEND ACCEPTANCE OF VOLUNTARY PUBLIC TAKEOVER OFFER BY PERSISTENT
Further company coverage: [NA9n.DE]
(Gdansk Newsroom)
(([email protected]; +48 58 769 66 00;))
Persistent Systems began a six-week acceptance period on August 6 for its €81-a-share cash offer for all outstanding shares of Nagarro SE, after Germany’s BaFin authorised publication of the offer document. The period runs until September 17, followed by an additional acceptance period expected from September 23 to October 6; the offer carries premiums of about 140% to Nagarro’s June 25 closing price and 93% to its three-month VWAP. Persistent’s shareholders approved the acquisition and related financing at the August 3 annual meeting, while the bidder had already secured an approximately 22% stake and commitments covering a further roughly 15% from Nagarro’s management and employees. Persistent and Nagarro together described the proposed combination as a global digital-engineering group with about $2.9 billion of revenue and more than 46,000 employees.
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Persistent Systems began a six-week acceptance period on August 6 for its €81-a-share cash offer for all outstanding shares of Nagarro SE, after Germany’s BaFin authorised publication of the offer document. The period runs until September 17, followed by an additional acceptance period expected from September 23 to October 6; the offer carries premiums of about 140% to Nagarro’s June 25 closing price and 93% to its three-month VWAP. Persistent’s shareholders approved the acquisition and related financing at the August 3 annual meeting, while the bidder had already secured an approximately 22% stake and commitments covering a further roughly 15% from Nagarro’s management and employees. Persistent and Nagarro together described the proposed combination as a global digital-engineering group with about $2.9 billion of revenue and more than 46,000 employees.
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Aug 4 (Reuters) - PERSISTENT SYSTEMS PERS.NS -
SHAREHOLDERS APPROVED THE PROPOSED ACQUISITION OF NAGARRO SE THROUGH ITS SUBSIDIARY, GALAXY GERMANY HOLDING SE, ALONG WITH THE RELATED FINANCING ARRANGEMENTS AND CORPORATE GUARANTEE
FORMAL OFFER DOCUMENT WILL BE PUBLISHED FOLLOWING APPROVAL BY BAFIN
Further company coverage: PERS.NS
(Gdansk Newsroom)
(([email protected]; +48 58 7696600;))
Aug 4 (Reuters) - PERSISTENT SYSTEMS PERS.NS -
SHAREHOLDERS APPROVED THE PROPOSED ACQUISITION OF NAGARRO SE THROUGH ITS SUBSIDIARY, GALAXY GERMANY HOLDING SE, ALONG WITH THE RELATED FINANCING ARRANGEMENTS AND CORPORATE GUARANTEE
FORMAL OFFER DOCUMENT WILL BE PUBLISHED FOLLOWING APPROVAL BY BAFIN
Further company coverage: PERS.NS
(Gdansk Newsroom)
(([email protected]; +48 58 7696600;))
Bank expanding APAC investment banking team to boost advisory, M&A
Barclays targeting AI infrastructure, cross-border advisory deals
Bank's regional equity fundraising volume jumped 82% over past year
By Selena Li
HONG KONG, July 28 (Reuters) - Barclays is moving to bolster its investment banking presence across Asia-Pacific, prioritising fee-rich advisory and M&A opportunities a year after restructuring its regional team.
"We want to add more to our core coverage advisory business because our global focus is to grow that business more," Avinash Thakur, who was appointed regional investment banking chief in July last year, told Reuters in an interview with three senior Barclays executives.
Barclays' global investment banking and underwriting fee income grew 24% in the first six months of this year from a year ago, its results on Tuesday showed.
Thakur highlighted Japan, India, Australia and Southeast Asia as key growth drivers for the London-headquartered bank's efforts to grab a bigger share of high-value, milestone transactions.
Both global and local investment banks have been expanding their headcount in regional markets including Japan and India to advise on equity and debt capital market offerings, as well as on M&A transactions.
In the 12 months ended June, Barclays' equity capital proceeds in Asia Pacific, including Japan, surged 82% year-on-year, while debt capital market volumes rose 11%, LSEG data showed.
"We will continue to see significant amounts of capex and refinancing activity that clients will need to address," said Richard Satchwell, Barclays' APAC Head of Capital Markets Financing.
The bank's M&A business expanded by 18% over the same period, propelled by Japan dealmaking, which rocketed more than tenfold to $14.8 billion from the previous year's $1.4 billion.
Japan has been leading Asian M&A activities with multi-billion-dollar take-private arrangements, outbound investments and private equity activity, amid corporate governance reforms to tackle chronic low valuations.
In Japan, Barclays appointed Hiroshi Minoura as chairman of investment banking and recruited Kensuke Nakatsuka as head of M&A advisory in April. It has also added three senior sector coverage bankers over the past year.
"The strategic imperative to find growth outside Japan is, and continues to be, very strong," said Ee-Ching Tay, Barclays' APAC head of M&A and head of Southeast Asia investment banking.
Barclays has also hired former Deutsche Bank DBKGn.DE banker Ramin Naji as Asia Pacific head of healthcare, and he will start in his new role in August, according to a source familiar with the matter. Barclays declined to comment.
Although macroeconomic volatility and AI disruption drove broader Asia Pacific M&A volumes down 20% in the first half, Tay sees growth opportunities in AI-driven digital infrastructure buildouts for advisory and financing.
Last month, Barclays advised Indian software firm Persistent Systems on its acquisition of Germany's Nagarro, and Tay said she expects more Indian buyers to pursue targets abroad to access technology and expand into new markets at favourable valuations.
($1 = 0.7509 pounds)
(Reporting by Selena Li; Editing by Kevin Buckland)
(([email protected]; +852 39525868;))
Bank expanding APAC investment banking team to boost advisory, M&A
Barclays targeting AI infrastructure, cross-border advisory deals
Bank's regional equity fundraising volume jumped 82% over past year
By Selena Li
HONG KONG, July 28 (Reuters) - Barclays is moving to bolster its investment banking presence across Asia-Pacific, prioritising fee-rich advisory and M&A opportunities a year after restructuring its regional team.
"We want to add more to our core coverage advisory business because our global focus is to grow that business more," Avinash Thakur, who was appointed regional investment banking chief in July last year, told Reuters in an interview with three senior Barclays executives.
Barclays' global investment banking and underwriting fee income grew 24% in the first six months of this year from a year ago, its results on Tuesday showed.
Thakur highlighted Japan, India, Australia and Southeast Asia as key growth drivers for the London-headquartered bank's efforts to grab a bigger share of high-value, milestone transactions.
Both global and local investment banks have been expanding their headcount in regional markets including Japan and India to advise on equity and debt capital market offerings, as well as on M&A transactions.
In the 12 months ended June, Barclays' equity capital proceeds in Asia Pacific, including Japan, surged 82% year-on-year, while debt capital market volumes rose 11%, LSEG data showed.
"We will continue to see significant amounts of capex and refinancing activity that clients will need to address," said Richard Satchwell, Barclays' APAC Head of Capital Markets Financing.
The bank's M&A business expanded by 18% over the same period, propelled by Japan dealmaking, which rocketed more than tenfold to $14.8 billion from the previous year's $1.4 billion.
Japan has been leading Asian M&A activities with multi-billion-dollar take-private arrangements, outbound investments and private equity activity, amid corporate governance reforms to tackle chronic low valuations.
In Japan, Barclays appointed Hiroshi Minoura as chairman of investment banking and recruited Kensuke Nakatsuka as head of M&A advisory in April. It has also added three senior sector coverage bankers over the past year.
"The strategic imperative to find growth outside Japan is, and continues to be, very strong," said Ee-Ching Tay, Barclays' APAC head of M&A and head of Southeast Asia investment banking.
Barclays has also hired former Deutsche Bank DBKGn.DE banker Ramin Naji as Asia Pacific head of healthcare, and he will start in his new role in August, according to a source familiar with the matter. Barclays declined to comment.
Although macroeconomic volatility and AI disruption drove broader Asia Pacific M&A volumes down 20% in the first half, Tay sees growth opportunities in AI-driven digital infrastructure buildouts for advisory and financing.
Last month, Barclays advised Indian software firm Persistent Systems on its acquisition of Germany's Nagarro, and Tay said she expects more Indian buyers to pursue targets abroad to access technology and expand into new markets at favourable valuations.
($1 = 0.7509 pounds)
(Reporting by Selena Li; Editing by Kevin Buckland)
(([email protected]; +852 39525868;))
ICRA placed Persistent Systems' AA+ issuer rating on watch with negative implications on July 7, citing the company's proposed acquisition of German IT firm Nagarro SE. The rating agency said the debt-funded deal, estimated at EUR 1.27 billion, would significantly increase Persistent's leverage once completed. While the rating remains AA+ for now, ICRA noted that the transaction is likely to weaken the company's financial risk profile and could lead to a downgrade if credit metrics worsen. Persistent's existing leverage is very low, but the acquisition would be financed entirely through a bridge facility.
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ICRA placed Persistent Systems' AA+ issuer rating on watch with negative implications on July 7, citing the company's proposed acquisition of German IT firm Nagarro SE. The rating agency said the debt-funded deal, estimated at EUR 1.27 billion, would significantly increase Persistent's leverage once completed. While the rating remains AA+ for now, ICRA noted that the transaction is likely to weaken the company's financial risk profile and could lead to a downgrade if credit metrics worsen. Persistent's existing leverage is very low, but the acquisition would be financed entirely through a bridge facility.
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The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, July 3 (Reuters Breakingviews) - Markets aren't trusting IT outsourcers to get anything right. Shares in India's $7.5 billion Persistent Systems PERS.NS plunged after CEO Sandeep Kalra agreed to pay a 140% premium for its buyout of Germany's Nagarro NA9n.DE. But the $1.45 bln deal helps the buyer meet long-standing strategic goals at knockdown valuation.
After dropping 11% after the acquisition was announced on Saturday, Persistent's stock pared losses but remains 5% below its undisturbed price. The visceral negative reaction channels widespread industry uncertainty about whether acquisitions are a good answer to the AI revenue deflation threat facing the industry since Anthropic and peers launched coding tools.
Indian IT companies are loaded with cash but rarely strike deals, and very few transactions are regarded as successful. Even without a premium, Persistent's returns from its purchase are unlikely to cover the Indian software industry's 10% cost of capital per data from the NYU Stern School of Business, according to Breakingviews calculations.
Yet the acquisition is transformative. It will boost Persistent's presence in Europe, more than doubling the continent's share in its top line to 22%, and give it an entry into the Middle East, Turkey and Japan. As well as reducing its reliance on North America where the Trump administration is making it harder to secure visas for skilled workers that the IT industry needs, the deal will also add capabilities in serving industrial and consumer enterprises as well as governments, where Persistent has limited presence.
The sudden global investor aversion to software stocks handed Persistent an opening to meet these strategic goals at relatively attractive valuations. Nagarro's stock has fallen 46% since the beginning of 2026, twice as much as Persistent over the same period. It is paying 19 times Visible Alpha's estimates of the target's 2026 earnings, less than its own 29 times.
Given investors are anyway in the mood to punish IT companies and pushing back against attempts by others like $44 billion Infosys INFY.NS to boost buybacks, the downside of making a bold acquisition is limited.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Persistent Systems on June 27 said it would launch an offer for all outstanding shares in Munich-headquartered Nagarro Group, valuing it at $1.45 billion including debt. The offer of 81 euros ($92.12) per share represents a 140% premium to the last traded price before the deal was announced.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
By Shritama Bose
MUMBAI, July 3 (Reuters Breakingviews) - Markets aren't trusting IT outsourcers to get anything right. Shares in India's $7.5 billion Persistent Systems PERS.NS plunged after CEO Sandeep Kalra agreed to pay a 140% premium for its buyout of Germany's Nagarro NA9n.DE. But the $1.45 bln deal helps the buyer meet long-standing strategic goals at knockdown valuation.
After dropping 11% after the acquisition was announced on Saturday, Persistent's stock pared losses but remains 5% below its undisturbed price. The visceral negative reaction channels widespread industry uncertainty about whether acquisitions are a good answer to the AI revenue deflation threat facing the industry since Anthropic and peers launched coding tools.
Indian IT companies are loaded with cash but rarely strike deals, and very few transactions are regarded as successful. Even without a premium, Persistent's returns from its purchase are unlikely to cover the Indian software industry's 10% cost of capital per data from the NYU Stern School of Business, according to Breakingviews calculations.
Yet the acquisition is transformative. It will boost Persistent's presence in Europe, more than doubling the continent's share in its top line to 22%, and give it an entry into the Middle East, Turkey and Japan. As well as reducing its reliance on North America where the Trump administration is making it harder to secure visas for skilled workers that the IT industry needs, the deal will also add capabilities in serving industrial and consumer enterprises as well as governments, where Persistent has limited presence.
The sudden global investor aversion to software stocks handed Persistent an opening to meet these strategic goals at relatively attractive valuations. Nagarro's stock has fallen 46% since the beginning of 2026, twice as much as Persistent over the same period. It is paying 19 times Visible Alpha's estimates of the target's 2026 earnings, less than its own 29 times.
Given investors are anyway in the mood to punish IT companies and pushing back against attempts by others like $44 billion Infosys INFY.NS to boost buybacks, the downside of making a bold acquisition is limited.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Persistent Systems on June 27 said it would launch an offer for all outstanding shares in Munich-headquartered Nagarro Group, valuing it at $1.45 billion including debt. The offer of 81 euros ($92.12) per share represents a 140% premium to the last traded price before the deal was announced.
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
- Persistent signed a business combination agreement to buy all outstanding Nagarro shares in an all-cash offer at EUR 81 each.
- The price implies a roughly 140% premium to the June 25, 2026 close, or about 94% to the three-month VWAP.
- Persistent secured a binding deal to buy Lantano’s entire roughly 21% stake, or about 21% already lined up.
- The offer requires acceptances for more than 50% of outstanding shares; closing targeted for Q4 2026 or Q1 2027.
- Persistent plans to seek a Frankfurt delisting as soon as practicable; it does not plan a DPLTA for two years post-close.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Nagarro SE published the original content used to generate this news brief on July 01, 2026, and is solely responsible for the information contained therein.
- Persistent signed a business combination agreement to buy all outstanding Nagarro shares in an all-cash offer at EUR 81 each.
- The price implies a roughly 140% premium to the June 25, 2026 close, or about 94% to the three-month VWAP.
- Persistent secured a binding deal to buy Lantano’s entire roughly 21% stake, or about 21% already lined up.
- The offer requires acceptances for more than 50% of outstanding shares; closing targeted for Q4 2026 or Q1 2027.
- Persistent plans to seek a Frankfurt delisting as soon as practicable; it does not plan a DPLTA for two years post-close.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Nagarro SE published the original content used to generate this news brief on July 01, 2026, and is solely responsible for the information contained therein.
June 29 (Reuters) - India's Persistent Systems PERS.NS shares opened 7% lower on Monday, after the IT services firm offered to buy German firm Nagarro NA9n.DE for 1 billion euros ($1.14 billion), according to Reuters calculations.
The German digital engineering firm's board said it intends to recommend the 81 euro per share offer to shareholders.
($1 = 0.8782 euros)
(Reporting by Abhirami G and Abinaya V in Bengaluru; Editing by Rashmi Aich)
June 29 (Reuters) - India's Persistent Systems PERS.NS shares opened 7% lower on Monday, after the IT services firm offered to buy German firm Nagarro NA9n.DE for 1 billion euros ($1.14 billion), according to Reuters calculations.
The German digital engineering firm's board said it intends to recommend the 81 euro per share offer to shareholders.
($1 = 0.8782 euros)
(Reporting by Abhirami G and Abinaya V in Bengaluru; Editing by Rashmi Aich)
- Persistent agreed to buy all outstanding Nagarro shares in a voluntary all-cash offer priced at EUR 81 per share.
- The price implies a roughly 140% premium to Nagarro’s June 25 close, or about 94% to the three-month volume-weighted average.
- Persistent already holds about 21% of Nagarro, with the target’s largest shareholder committing to sell its entire stake.
- Nagarro’s management board and supervisory board backed the deal, with management board members indicating they plan to tender their shares.
- The combination is pitched at about $2.9 billion in value, with more than 46,000 employees, with closing targeted for Q4 2026 or Q1 2027.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: FR93644) on June 28, 2026, and is solely responsible for the information contained therein.
- Persistent agreed to buy all outstanding Nagarro shares in a voluntary all-cash offer priced at EUR 81 per share.
- The price implies a roughly 140% premium to Nagarro’s June 25 close, or about 94% to the three-month volume-weighted average.
- Persistent already holds about 21% of Nagarro, with the target’s largest shareholder committing to sell its entire stake.
- Nagarro’s management board and supervisory board backed the deal, with management board members indicating they plan to tender their shares.
- The combination is pitched at about $2.9 billion in value, with more than 46,000 employees, with closing targeted for Q4 2026 or Q1 2027.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: FR93644) on June 28, 2026, and is solely responsible for the information contained therein.
- Persistent Systems’ unit Galaxy Germany Holding agreed to buy all outstanding Nagarro shares for EUR 81 each in cash.
- Nagarro’s management and supervisory board backed the deal, planning to recommend the offer once documentation is reviewed.
- Persistent already secured about a 21% Nagarro stake, with largest shareholder Lantano agreeing to sell its full holding at EUR 81.
- The offer requires acceptances exceeding 50% of shares; closing is targeted for Q4 2026 or Q1 2027.
- Persistent plans to seek a Frankfurt delisting of Nagarro as soon as practicable following completion.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: 202606262108PR_NEWS_EURO_ND__EN93644) on June 27, 2026, and is solely responsible for the information contained therein.
- Persistent Systems’ unit Galaxy Germany Holding agreed to buy all outstanding Nagarro shares for EUR 81 each in cash.
- Nagarro’s management and supervisory board backed the deal, planning to recommend the offer once documentation is reviewed.
- Persistent already secured about a 21% Nagarro stake, with largest shareholder Lantano agreeing to sell its full holding at EUR 81.
- The offer requires acceptances exceeding 50% of shares; closing is targeted for Q4 2026 or Q1 2027.
- Persistent plans to seek a Frankfurt delisting of Nagarro as soon as practicable following completion.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: 202606262108PR_NEWS_EURO_ND__EN93644) on June 27, 2026, and is solely responsible for the information contained therein.
Persistent Systems has entered into a six-and-a-half-year strategic services agreement with an undisclosed global technology leader based in the United States, the company said on Friday. The contract, valued at over $650 million in total and $125 million annually, will see Persistent provide end-to-end product development, cloud operations, and support for the client's enterprise software portfolio. The engagement spans North America, Europe, and Asia Pacific, leveraging Persistent's AI-driven platforms and domain expertise. The client's identity is withheld due to confidentiality obligations. Persistent confirmed that none of its promoters have any interest in the client and that the agreement is in the ordinary course of business, not a related party transaction. It is expected to strengthen Persistent's capabilities and enable long-term strategic benefits.
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Persistent Systems has entered into a six-and-a-half-year strategic services agreement with an undisclosed global technology leader based in the United States, the company said on Friday. The contract, valued at over $650 million in total and $125 million annually, will see Persistent provide end-to-end product development, cloud operations, and support for the client's enterprise software portfolio. The engagement spans North America, Europe, and Asia Pacific, leveraging Persistent's AI-driven platforms and domain expertise. The client's identity is withheld due to confidentiality obligations. Persistent confirmed that none of its promoters have any interest in the client and that the agreement is in the ordinary course of business, not a related party transaction. It is expected to strengthen Persistent's capabilities and enable long-term strategic benefits.
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Persistent Systems' board has approved the acquisition of German digital engineering firm Nagarro SE through a voluntary public takeover offer at €81 per share. The Pune-based IT company formed a wholly-owned subsidiary, Galaxy Germany Holding SE, which signed a share purchase agreement to buy a 21% stake in Nagarro from its largest shareholder, Lantano Beteiligungen GmbH. Persistent also entered a business combination agreement to acquire 100% of Nagarro's outstanding share capital, subject to regulatory and shareholder approvals. To fund the deal and refinance Nagarro's debt, the company secured a €1.4 billion bridge financing facility from Barclays, backed by a corporate guarantee of up to €1.54 billion. Nagarro, headquartered in Munich, employs around 18,500 people and reported revenue of €999.3 million in CY2025. Persistent said the combination would create a $2.9 billion AI-led engineering powerhouse with 46,000-plus employees. The voluntary public offer is expected to settle in Q4 CY2026 or Q1 CY2027.
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Persistent Systems' board has approved the acquisition of German digital engineering firm Nagarro SE through a voluntary public takeover offer at €81 per share. The Pune-based IT company formed a wholly-owned subsidiary, Galaxy Germany Holding SE, which signed a share purchase agreement to buy a 21% stake in Nagarro from its largest shareholder, Lantano Beteiligungen GmbH. Persistent also entered a business combination agreement to acquire 100% of Nagarro's outstanding share capital, subject to regulatory and shareholder approvals. To fund the deal and refinance Nagarro's debt, the company secured a €1.4 billion bridge financing facility from Barclays, backed by a corporate guarantee of up to €1.54 billion. Nagarro, headquartered in Munich, employs around 18,500 people and reported revenue of €999.3 million in CY2025. Persistent said the combination would create a $2.9 billion AI-led engineering powerhouse with 46,000-plus employees. The voluntary public offer is expected to settle in Q4 CY2026 or Q1 CY2027.
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- Galaxy Germany Holding, a holding company for Persistent Systems, plans to acquire all shares in Nagarro for EUR 81 per share in cash.
- The price implies a roughly 93.5% premium to the three-month volume-weighted Xetra average through June 25.
- The offer is conditional on reaching 50% plus one share, including about 20% to be bought from a major shareholder off-market.
- Persistent, the bidder, and Nagarro signed a business combination agreement; Nagarro’s executive and supervisory boards support the deal.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Nagarro SE published the original content used to generate this news brief via EQS News (Ref. ID: adhoc_2355220_en) on June 26, 2026, and is solely responsible for the information contained therein.
- Galaxy Germany Holding, a holding company for Persistent Systems, plans to acquire all shares in Nagarro for EUR 81 per share in cash.
- The price implies a roughly 93.5% premium to the three-month volume-weighted Xetra average through June 25.
- The offer is conditional on reaching 50% plus one share, including about 20% to be bought from a major shareholder off-market.
- Persistent, the bidder, and Nagarro signed a business combination agreement; Nagarro’s executive and supervisory boards support the deal.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Nagarro SE published the original content used to generate this news brief via EQS News (Ref. ID: adhoc_2355220_en) on June 26, 2026, and is solely responsible for the information contained therein.
- Persistent partnered with Major League Cricket franchise San Francisco Unicorns for the 2026 season as an official premium-tier partner.
- Deal targets AI- and data-led work tied to on-field performance analytics, real-time decision support, strategy, and fan engagement initiatives in the U.S.
- Activation includes integrated branding across team and digital platforms, including kit placement, perimeter boards, and a branded content segment.
- Agreement also provides hospitality access aimed at client and partner engagement in North America.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: 202606150543PR_NEWS_USPR_____IO83452) on June 15, 2026, and is solely responsible for the information contained therein.
- Persistent partnered with Major League Cricket franchise San Francisco Unicorns for the 2026 season as an official premium-tier partner.
- Deal targets AI- and data-led work tied to on-field performance analytics, real-time decision support, strategy, and fan engagement initiatives in the U.S.
- Activation includes integrated branding across team and digital platforms, including kit placement, perimeter boards, and a branded content segment.
- Agreement also provides hospitality access aimed at client and partner engagement in North America.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: 202606150543PR_NEWS_USPR_____IO83452) on June 15, 2026, and is solely responsible for the information contained therein.
- Persistent Systems agreed to expand in Eastern Europe by integrating a 90-plus-person specialist team from Estonia-based software and IT consultancy Concise.
- The deal would add delivery centers in Tallinn and Tartu, strengthening nearshore capacity for AI-led platform modernization programs across Europe.
- Persistent expects deeper capability in AI-driven product development, distributed systems, cloud-native engineering, targeting mobility, logistics, and smart infrastructure work.
- The transaction is subject to closing conditions.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: GE72316) on June 02, 2026, and is solely responsible for the information contained therein.
- Persistent Systems agreed to expand in Eastern Europe by integrating a 90-plus-person specialist team from Estonia-based software and IT consultancy Concise.
- The deal would add delivery centers in Tallinn and Tartu, strengthening nearshore capacity for AI-led platform modernization programs across Europe.
- Persistent expects deeper capability in AI-driven product development, distributed systems, cloud-native engineering, targeting mobility, logistics, and smart infrastructure work.
- The transaction is subject to closing conditions.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: GE72316) on June 02, 2026, and is solely responsible for the information contained therein.
June 1 (Reuters) - Persistent Systems Ltd PERS.NS:
PERSISTENT SYSTEMS - TO EXPAND EASTERN EUROPEAN PRESENCE WITH INTEGRATION OF OVER 90 CONCISE PROFESSIONALS
Source text: ID:nBSE8pbrff
Further company coverage: PERS.NS
(([email protected];))
June 1 (Reuters) - Persistent Systems Ltd PERS.NS:
PERSISTENT SYSTEMS - TO EXPAND EASTERN EUROPEAN PRESENCE WITH INTEGRATION OF OVER 90 CONCISE PROFESSIONALS
Source text: ID:nBSE8pbrff
Further company coverage: PERS.NS
(([email protected];))
- Persistent Systems entered a strategic partnership with Kong to help enterprises deploy AI securely at scale across hybrid, multi-cloud environments.
- Collaboration centers on a unified control layer to govern APIs, data pipelines, AI models, agents; aims to cut operating costs, strengthen governance.
- Persistent will act as a global systems integration partner for Kong, combining its engineering services with Kong’s API and AI connectivity platform.
- Partnership supports GenAI and agentic workflows, including Model Context Protocol architectures, with policy-based security, access controls, end-to-end observability.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: FR67093) on May 26, 2026, and is solely responsible for the information contained therein.
- Persistent Systems entered a strategic partnership with Kong to help enterprises deploy AI securely at scale across hybrid, multi-cloud environments.
- Collaboration centers on a unified control layer to govern APIs, data pipelines, AI models, agents; aims to cut operating costs, strengthen governance.
- Persistent will act as a global systems integration partner for Kong, combining its engineering services with Kong’s API and AI connectivity platform.
- Partnership supports GenAI and agentic workflows, including Model Context Protocol architectures, with policy-based security, access controls, end-to-end observability.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: FR67093) on May 26, 2026, and is solely responsible for the information contained therein.
- Persistent entered a strategic partnership with Kong to help enterprises move AI into production with a governed connectivity and control layer.
- Persistent will act as Kong’s global systems integration partner, deploying Kong’s unified API and AI connectivity platform across hybrid and multi-cloud environments.
- Tie-up targets modernization of legacy API estates, stronger governance, lower operating costs, improved security, observability, compliance for AI workloads.
- Collaboration supports GenAI, agentic workflows, Model Context Protocol-based architectures with policy controls including PII protection, centralized access management.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: 202605250611PR_NEWS_USPR_____IO67093) on May 25, 2026, and is solely responsible for the information contained therein.
- Persistent entered a strategic partnership with Kong to help enterprises move AI into production with a governed connectivity and control layer.
- Persistent will act as Kong’s global systems integration partner, deploying Kong’s unified API and AI connectivity platform across hybrid and multi-cloud environments.
- Tie-up targets modernization of legacy API estates, stronger governance, lower operating costs, improved security, observability, compliance for AI workloads.
- Collaboration supports GenAI, agentic workflows, Model Context Protocol-based architectures with policy controls including PII protection, centralized access management.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Persistent Systems Ltd. published the original content used to generate this news brief via PR Newswire (Ref. ID: 202605250611PR_NEWS_USPR_____IO67093) on May 25, 2026, and is solely responsible for the information contained therein.
- AEVEX joined Persistent Systems’ Wave Relay Ecosystem, expanding collaboration to integrate Wave Relay MANET networking across AEVEX unmanned platforms.
- Wave Relay MANET will be embedded as preferred network on Atlas unmanned aerial system plus Mako, Mako Lite unmanned surface vessels, targeting resilient connectivity in contested environments.
- Persistent cited prior integration on Atlas, which was selected for US Army Launched Effects-Short Range program following testing, positioning partnership to scale networked autonomous operations.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Aevex Corp. published the original content used to generate this news brief via PR Newswire (Ref. ID: NY50371) on May 05, 2026, and is solely responsible for the information contained therein.
- AEVEX joined Persistent Systems’ Wave Relay Ecosystem, expanding collaboration to integrate Wave Relay MANET networking across AEVEX unmanned platforms.
- Wave Relay MANET will be embedded as preferred network on Atlas unmanned aerial system plus Mako, Mako Lite unmanned surface vessels, targeting resilient connectivity in contested environments.
- Persistent cited prior integration on Atlas, which was selected for US Army Launched Effects-Short Range program following testing, positioning partnership to scale networked autonomous operations.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Aevex Corp. published the original content used to generate this news brief via PR Newswire (Ref. ID: NY50371) on May 05, 2026, and is solely responsible for the information contained therein.
Changes media packaging code to INDIA-IT/STOCKS and rewrites throughout
By Urvi Dugar
BENGALURU, April 24 - Revenue growth for India's top IT firms will stay muted this fiscal year, as gains from artificial intelligence would be blunted with clients cutting spending amid macroeconomic and geopolitical uncertainty, analysts said.
The Nifty IT index .NIFTYIT, the worst performing sector of 2026, shed roughly $26 billion in market value this week after earnings from market leaders Tata Consultancy Services TCS.NS and Infosys INFY.NS disappointed investors amid worries that agentic AI would disrupt the $315 billion sector and cannibalise earnings.
India's top five IT firms are expected to post muted revenue growth of about 3%-4% in the near term, said Sushovan Nayak, analyst at Anand Rathi.
The sector, which employs about 5.9 million people, had last reported double-digit revenue growth in the March 2023 quarter. Analysts had expected a falling rupee to boost revenue by 10% across the sector.
The U.S., which accounts for more than half of the revenue at most large Indian IT firms, has seen softer deal pipelines, while uncertainty surrounding immigration and tariffs persists, and geopolitical conflicts further delay long‑term technology spending decisions.
The slowdown was the most acute in the banking and financial services, which is a key revenue driver for the sector.
TCS posted its first annual revenue decline in more than two decades, and said that new AI models and tools in the market did not hurt demand for its offerings.
Infosys, HCLTech HCLT.NS and Wipro WIPR.NS trimmed their forecast for fiscal 2027's revenue growth.
Despite near‑term pressures, analysts remain confident that IT companies will eventually leverage AI to defend margins and unlock new growth opportunities.
"Revenue from AI is growing at a fast pace, but it's coming off a very low base and is hardly 5% of total revenue," said Centrum Broking's Piyush Pandey, adding that AI was weighing on pricing, particularly in legacy contracts.
Given that, mid-sized IT firms such as LTM LTIM.NS and Persistent Systems PERS.NS that have stronger digital and AI-led exposure may outperform, said Nayak.
The benchmark Nifty 50 .NSEI is down 8.6% this year so far.
IT stocks underperform India's stock benchmark Nifty 50 in 2026 so far https://reut.rs/4trBtW3
(Reporting by Urvi Dugar in Bengaluru; Editing by Harikrishnan Nair)
(([email protected]; +91 9558725583;))
Changes media packaging code to INDIA-IT/STOCKS and rewrites throughout
By Urvi Dugar
BENGALURU, April 24 - Revenue growth for India's top IT firms will stay muted this fiscal year, as gains from artificial intelligence would be blunted with clients cutting spending amid macroeconomic and geopolitical uncertainty, analysts said.
The Nifty IT index .NIFTYIT, the worst performing sector of 2026, shed roughly $26 billion in market value this week after earnings from market leaders Tata Consultancy Services TCS.NS and Infosys INFY.NS disappointed investors amid worries that agentic AI would disrupt the $315 billion sector and cannibalise earnings.
India's top five IT firms are expected to post muted revenue growth of about 3%-4% in the near term, said Sushovan Nayak, analyst at Anand Rathi.
The sector, which employs about 5.9 million people, had last reported double-digit revenue growth in the March 2023 quarter. Analysts had expected a falling rupee to boost revenue by 10% across the sector.
The U.S., which accounts for more than half of the revenue at most large Indian IT firms, has seen softer deal pipelines, while uncertainty surrounding immigration and tariffs persists, and geopolitical conflicts further delay long‑term technology spending decisions.
The slowdown was the most acute in the banking and financial services, which is a key revenue driver for the sector.
TCS posted its first annual revenue decline in more than two decades, and said that new AI models and tools in the market did not hurt demand for its offerings.
Infosys, HCLTech HCLT.NS and Wipro WIPR.NS trimmed their forecast for fiscal 2027's revenue growth.
Despite near‑term pressures, analysts remain confident that IT companies will eventually leverage AI to defend margins and unlock new growth opportunities.
"Revenue from AI is growing at a fast pace, but it's coming off a very low base and is hardly 5% of total revenue," said Centrum Broking's Piyush Pandey, adding that AI was weighing on pricing, particularly in legacy contracts.
Given that, mid-sized IT firms such as LTM LTIM.NS and Persistent Systems PERS.NS that have stronger digital and AI-led exposure may outperform, said Nayak.
The benchmark Nifty 50 .NSEI is down 8.6% this year so far.
IT stocks underperform India's stock benchmark Nifty 50 in 2026 so far https://reut.rs/4trBtW3
(Reporting by Urvi Dugar in Bengaluru; Editing by Harikrishnan Nair)
(([email protected]; +91 9558725583;))
** Shares of India's Persistent Systems PERS.NS fall 4.32% to 5103.30 rupees; biggest intraday pct drop since February 20
** Co posted 33.6% y/y increase in Q4 profit to 5.29 billion rupees, revenue from ops rose 25.1% y/y
SOFTER FY27 OUTLOOK, MARGIN MISS OFFSET STRONG GROWTH
** CLSA ("high-conviction outperform", PT: 6520 rupees) cuts FY27/28 EPS estimates by 6%-7% after company guided for its $2 bln revenue run-rate only by 4QFY27, later than earlier expectations
** Nomura ("neutral", PT: 5200 rupees) trims FY27-28 EPS estimates by ~2%-4% after a modest revenue and margin miss in the quarter; says stock's rich valuation limits upside despite strong deal wins and pipeline visibility
** UBS ("buy", cuts PT to 6240 rupees from 6280 rupees) says revenue growth was slightly below expectations and EBIT margin missed estimates due to higher consulting, subcontracting and license costs, though deal momentum remained healthy
** HSBC ("hold", raises PT to 5755 rupees from 5675 rupees) says FY27 outlook appeared softer than expected and valuation remains steep at roughly double sector averages, limiting further upside despite sector-leading growth
(Reporting by Surbhi Misra in Bengaluru)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
** Shares of India's Persistent Systems PERS.NS fall 4.32% to 5103.30 rupees; biggest intraday pct drop since February 20
** Co posted 33.6% y/y increase in Q4 profit to 5.29 billion rupees, revenue from ops rose 25.1% y/y
SOFTER FY27 OUTLOOK, MARGIN MISS OFFSET STRONG GROWTH
** CLSA ("high-conviction outperform", PT: 6520 rupees) cuts FY27/28 EPS estimates by 6%-7% after company guided for its $2 bln revenue run-rate only by 4QFY27, later than earlier expectations
** Nomura ("neutral", PT: 5200 rupees) trims FY27-28 EPS estimates by ~2%-4% after a modest revenue and margin miss in the quarter; says stock's rich valuation limits upside despite strong deal wins and pipeline visibility
** UBS ("buy", cuts PT to 6240 rupees from 6280 rupees) says revenue growth was slightly below expectations and EBIT margin missed estimates due to higher consulting, subcontracting and license costs, though deal momentum remained healthy
** HSBC ("hold", raises PT to 5755 rupees from 5675 rupees) says FY27 outlook appeared softer than expected and valuation remains steep at roughly double sector averages, limiting further upside despite sector-leading growth
(Reporting by Surbhi Misra in Bengaluru)
(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))
April 21 (Reuters) - Persistent Systems Ltd PERS.NS:
PERSISTENT SYSTEMS - DECLARES DIVIDEND OF 18 RUPEESPER SHARE
PERSISTENT SYSTEMS MARCH-QUARTER CONSOL PROFIT 5.29 BILLION RUPEES
PERSISTENT SYSTEMS MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 40.56 BILLION RUPEES
Source text: ID:nBSE4znJ4d
Further company coverage: PERS.NS
(([email protected];))
April 21 (Reuters) - Persistent Systems Ltd PERS.NS:
PERSISTENT SYSTEMS - DECLARES DIVIDEND OF 18 RUPEESPER SHARE
PERSISTENT SYSTEMS MARCH-QUARTER CONSOL PROFIT 5.29 BILLION RUPEES
PERSISTENT SYSTEMS MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 40.56 BILLION RUPEES
Source text: ID:nBSE4znJ4d
Further company coverage: PERS.NS
(([email protected];))
April 9 (Reuters) - Persistent Systems Ltd PERS.NS:
LAUNCHES MERCHANT RISK MANAGEMENT SOLUTION POWERED BY DATABRICKS AI
Source text: ID:nnAZN4SPW9G
Further company coverage: PERS.NS
(([email protected];;))
April 9 (Reuters) - Persistent Systems Ltd PERS.NS:
LAUNCHES MERCHANT RISK MANAGEMENT SOLUTION POWERED BY DATABRICKS AI
Source text: ID:nnAZN4SPW9G
Further company coverage: PERS.NS
(([email protected];;))
March 23 (Reuters) - Persistent Systems Ltd PERS.NS:
PERSISTENT APPOINTS RUCHI KULHARI AS EXECUTIVE VICE PRESIDENT - ENTERPRISE STRATEGY & EXECUTION
Source text: ID:nPn97mJyxa
Further company coverage: PERS.NS
(([email protected];))
March 23 (Reuters) - Persistent Systems Ltd PERS.NS:
PERSISTENT APPOINTS RUCHI KULHARI AS EXECUTIVE VICE PRESIDENT - ENTERPRISE STRATEGY & EXECUTION
Source text: ID:nPn97mJyxa
Further company coverage: PERS.NS
(([email protected];))
March 17 (Reuters) - Persistent Systems Ltd PERS.NS:
LAUNCHES AI-POWERED GENERATIVE MOLECULES AND VIRTUAL SCREENING SOLUTION POWERED BY NVIDIA
Further company coverage: PERS.NS
(([email protected];;))
March 17 (Reuters) - Persistent Systems Ltd PERS.NS:
LAUNCHES AI-POWERED GENERATIVE MOLECULES AND VIRTUAL SCREENING SOLUTION POWERED BY NVIDIA
Further company coverage: PERS.NS
(([email protected];;))
March 5 (Reuters) - Persistent Systems Ltd PERS.NS:
LAUNCHES MELBOURNE INNOVATION CENTER FOR AI-DRIVEN ENTERPRISE MODERNIZATION
Source text: ID:nBSEblQ0Rm
Further company coverage: PERS.NS
(([email protected];;))
March 5 (Reuters) - Persistent Systems Ltd PERS.NS:
LAUNCHES MELBOURNE INNOVATION CENTER FOR AI-DRIVEN ENTERPRISE MODERNIZATION
Source text: ID:nBSEblQ0Rm
Further company coverage: PERS.NS
(([email protected];;))
Feb 24 (Reuters) - Persistent Systems Ltd PERS.NS:
PERSISTENT SYSTEMS - WE CONTINUALLY EXPLORE INORGANIC GROWTH OPPORTUNITIES
PERSISTENT SYSTEMS - CURRENTLY THERE IS NO IMMINENT M&A TRANSACTION THAT REQUIRES DISCLOSURE
Source text: ID:nBSE9nR5S8
Further company coverage: PERS.NS
(([email protected];))
Feb 24 (Reuters) - Persistent Systems Ltd PERS.NS:
PERSISTENT SYSTEMS - WE CONTINUALLY EXPLORE INORGANIC GROWTH OPPORTUNITIES
PERSISTENT SYSTEMS - CURRENTLY THERE IS NO IMMINENT M&A TRANSACTION THAT REQUIRES DISCLOSURE
Source text: ID:nBSE9nR5S8
Further company coverage: PERS.NS
(([email protected];))
Feb 17 (Reuters) - NVIDIA Corp NVDA.O:
NVIDIA: TECH MAHINDRA DEPLOYING LARGE TELCO MODEL TO POWER AUTONOMOUS NETWORK OPERATIONS USING NVIDIA NIM
NVIDIA: PERSISTENT ACCELERATES AI‑DRIVEN MOLECULAR DISCOVERY WITH NVIDIA BIONEMO AND NEMO AGENT TOOLKIT
NVIDIA: INFOSYS BUILDS AN ENTERPRISE-GRADE CODING SMALL LANGUAGE MODEL WITH NVIDIA AI ENTERPRISE
NVIDIA: RELIANCE NEW ENERGY EXPANDS COLLABORATION WITH CO & SIEMENS BY COMBINING SIEMENS’ DIGITAL TWIN TECHNOLOGY WITH CO'S OMNIVERSE LIBRARIES
NVIDIA: COLLABORATING WITH NEXT‑GENERATION CLOUD PROVIDERS YOTTA, L&T AND E2E NETWORKS
NVIDIA: DEVELOPERS BUILDING SOVEREIGN AI SYSTEMS CAN ACCESS NVIDIA NEMOTRON & NEMO TODAY
NVIDIA: TATA CONSULTING ENGINEERS LAUNCHES COGNITIVE TWIN PLATFORM, BUILT ON NVIDIA OMNIVERSE
NVIDIA: TO OFFER ANUSANDHAN NATIONAL RESEARCH FOUNDATION GRANTEE INSTITUTIONS COMPLIMENTARY ACCESS TO NVIDIA AI ENTERPRISE SOFTWARE
NVIDIA: PARTNERING WITH VENTURE CAPITAL FIRMS INCLUDING PEAK XV, ELEVATION CAPITAL, ACCEL INDIA & OTHERS TO IDENTIFY & FUND AI STARTUPS
Source text: [ID:]
Further company coverage: NVDA.O
(([email protected];))
Feb 17 (Reuters) - NVIDIA Corp NVDA.O:
NVIDIA: TECH MAHINDRA DEPLOYING LARGE TELCO MODEL TO POWER AUTONOMOUS NETWORK OPERATIONS USING NVIDIA NIM
NVIDIA: PERSISTENT ACCELERATES AI‑DRIVEN MOLECULAR DISCOVERY WITH NVIDIA BIONEMO AND NEMO AGENT TOOLKIT
NVIDIA: INFOSYS BUILDS AN ENTERPRISE-GRADE CODING SMALL LANGUAGE MODEL WITH NVIDIA AI ENTERPRISE
NVIDIA: RELIANCE NEW ENERGY EXPANDS COLLABORATION WITH CO & SIEMENS BY COMBINING SIEMENS’ DIGITAL TWIN TECHNOLOGY WITH CO'S OMNIVERSE LIBRARIES
NVIDIA: COLLABORATING WITH NEXT‑GENERATION CLOUD PROVIDERS YOTTA, L&T AND E2E NETWORKS
NVIDIA: DEVELOPERS BUILDING SOVEREIGN AI SYSTEMS CAN ACCESS NVIDIA NEMOTRON & NEMO TODAY
NVIDIA: TATA CONSULTING ENGINEERS LAUNCHES COGNITIVE TWIN PLATFORM, BUILT ON NVIDIA OMNIVERSE
NVIDIA: TO OFFER ANUSANDHAN NATIONAL RESEARCH FOUNDATION GRANTEE INSTITUTIONS COMPLIMENTARY ACCESS TO NVIDIA AI ENTERPRISE SOFTWARE
NVIDIA: PARTNERING WITH VENTURE CAPITAL FIRMS INCLUDING PEAK XV, ELEVATION CAPITAL, ACCEL INDIA & OTHERS TO IDENTIFY & FUND AI STARTUPS
Source text: [ID:]
Further company coverage: NVDA.O
(([email protected];))
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What does Persistent Systems do?
Persistent Systems is a global company specializing in software products and services, offering complete product life cycle services. It has expertise in telecommunications, life sciences, and infrastructure sectors.
Who are the competitors of Persistent Systems?
Persistent Systems major competitors are Coforge, Oracle Finl. Service, Mphasis, LTM, L&T Technology Serv., Redington, Tech Mahindra. Market Cap of Persistent Systems is ₹89,105 Crs. While the median market cap of its peers are ₹83,623 Crs.
Is Persistent Systems financially stable compared to its competitors?
Persistent Systems seems to be financially stable compared to its competitors. The probability of it going bankrupt or facing a financial crunch seem to be lower than its immediate competitors.
Does Persistent Systems pay decent dividends?
The company seems to pay a good stable dividend. Persistent Systems latest dividend payout ratio is 33.83% and 3yr average dividend payout ratio is 36.47%
How has Persistent Systems allocated its funds?
Companies resources are allocated to majorly unproductive assets like Cash & Short Term Investments
How strong is Persistent Systems balance sheet?
Balance sheet of Persistent Systems is strong. It shouldn't have solvency or liquidity issues.
Is the profitablity of Persistent Systems improving?
Yes, profit is increasing. The profit of Persistent Systems is ₹1,923 Crs for TTM, ₹1,865 Crs for Mar 2026 and ₹1,400 Crs for Mar 2025.
Is the debt of Persistent Systems increasing or decreasing?
The net debt of Persistent Systems is decreasing. Latest net debt of Persistent Systems is -₹2,436.49 Crs as of Mar-26. This is less than Mar-25 when it was -₹2,050.92 Crs.
Is Persistent Systems stock expensive?
Persistent Systems is not expensive. Latest PE of Persistent Systems is 46.33, while 3 year average PE is 51.62. Also latest EV/EBITDA of Persistent Systems is 30.51 while 3yr average is 33.33.
Has the share price of Persistent Systems grown faster than its competition?
Persistent Systems has given better returns compared to its competitors. Persistent Systems has grown at ~37.82% over the last 9yrs while peers have grown at a median rate of 18.77%
Is the promoter bullish about Persistent Systems?
Promoters stake in the company seems stable, and we need to go through filings and allocation of resources to gauge promoter bullishness. Latest quarter promoter holding in Persistent Systems is 30.29% and last quarter promoter holding is 30.29%.
Are mutual funds buying/selling Persistent Systems?
The mutual fund holding of Persistent Systems is decreasing. The current mutual fund holding in Persistent Systems is 21.32% while previous quarter holding is 22.12%.