Latest news with #Persistent
Mint
16 hours ago
- Business
- Mint
Mid-tier IT firms reshuffle top brass to chase growth amid AI, tariff turmoil
Persistent Systems Ltd named Jaideep Vijay Dhok as its chief operating officer for technology on Thursday, marking its third leadership change in as many weeks, to bolster its growth momentum. However, the country's ninth-largest information technology (IT) outsourcer is not the only one to have made leadership changes in the recent weeks. At least five of its peers earning less than $5 billion in annual revenue announced a dozen such leadership changes in total—ranking vertical heads and above—in less than 45 days. Analysts attribute these changes at mid-tier IT firms to their ambition to grow their business, with many of them luring top talent from their larger peers with proven skills and experience in scaling complex businesses. These new appointments and exits at the nation's mid-cap software services companies signal that they are looking to turbocharge growth at a time when generative artificial intelligence (GenAI) and macro uncertainties are prompting their clients to carefully reassess their spending plans. This is because maintaining IT budgets gets tough when primary business itself is getting hampered due to tariff-related turmoil. Sample this. Dhok, earlier the senior vice-president and general manager for banks and financial institutions at Persistent, replaced Dhanashree Bhat, who resigned for personal reasons. He assumes the new role from 12 August. Bhat joined Persistent from Tech Mahindra Ltd in December 2023. On 7 August, Persistent 'announced strategic leadership changes to scale its growth momentum and enhance its operational excellence." 'This change reflects the strength of the company's existing leadership, succession planning, long-term transformation priorities, and continued focus on seamless execution," said Persistent Systems in a press release on 7 August. As part of the rejig, Vinit Teredesai, who is the company's chief financial officer (CFO), is expected to take on the additional mantle of IT and ESG (environmental, social and governance), according to the company's press release. Dhok's elevation follows the retirement of Yogesh Patgaonkar as the company's chief people officer on 23 July. He was replaced by Rajiv Naithani, who was previously the senior vice president of the company for six months. Naithani assumed his role from the start of the month. However, Pune-based Persistent was not the only mid-sized IT outsourcer to reshuffle its top ranks in the last 45 days—five other peers have made similar changes. Gururaj Deshpande joined as chief delivery officer of larger peer LTIMindtree Ltd on 4 August. He is expected to handle the company's delivery centres and talent functions, and will report directly to chief executive officer (CEO) Venu Lambu, according to a company release. On 1 August, Coforge Ltd announced the exit of Gautam Samanta, president and executive director of the country's seventh-largest IT outsourcer, as he wished to pursue other opportunities. A day earlier, changes ensued at Hexaware Technologies Ltd, which made a comeback to the Indian stock exchanges this February. The Mumbai-headquartered IT service provider appointed Shantanu Baruah as president and global head of its healthcare and insurance vertical on 31 July. The former HCL executive vice-president replaced Milan Bhatt, who resigned in May. 'There is a lot of talent demand for mid-caps. This is where the growth is anticipated and boards are seeking talent from experienced large-cap players to drive growth, avoid the bureaucracy of a large-cap, and make more money in the process," said R. Wang, founder of Constellation Research. Hexaware also reposed its faith in company veteran Kush Gupta, who was promoted as vertical head of Hexaware's hi-tech professional services on 6 July. While Baruah joins from the country's third-largest IT company HCL Technologies Ltd, Gupta has plied his trade in Hexaware for 24 years. Both were designated as senior managerial personnel of the company and both changes were done to strengthen domain leadership and scale vertical growth, according to the company's press releases. At L&T Technology Services Ltd (LTTS), M.T. Lakshmanan ceased to be the chief human resources officer (CHRO) as he was transferred back to Larsen & Toubro Ltd, the parent company which deputed him to LTTS. According to the company's 16 July press release, T. Shivram is the new CHRO of LTTS. He also came from the L&T Group. Kamini Shah resigned as Birlasoft CFO on 23 July citing personal reasons, and was replaced by Chandrasekar Thyagarajan, who joined from Greaves Electric Mobility for a second stint as CFO. There were elevations even in the non-client facing roles, as Shimona Chadha was named Persistent Systems' chief marketing officer on 3 July, whereas Sairam Vedam took up that role for Coforge last month. LTIMindtree, Coforge, Persistent Systems, Hexaware, LTTS and Birlasoft ended the April-June 2025 period with $1.15 billion, $442 million, $389.7 million, $382.1 million, $335.3 million and $150.7 million, respectively. Mid-caps have outpaced the country's five largest tech service providers—Tata Consultancy Services Ltd, Infosys Ltd, HCLTech, Wipro Ltd and Tech Mahindra—for two consecutive years, growing in double digits last year compared with 1-5% revenue growth at large-caps. Notably, Wipro and Tech Mahindra have reported a revenue decline in the last two years. In relation to large-caps, churn at the CXO and vertical head level has been more pronounced for the smaller peers. The last company to report this churn was Tech Mahindra, which saw 11 leadership changes in the past 15 months, and the movement count at the company's senior management swelled to at least 20 since March last year. Some analysts said the changes were AI-induced. 'The industry has hit a slowdown and it's now much harder to grow. AI looks to be disrupting the industry," said Peter Bendor-Samuel, founder of Everest Group, adding that mid-sized firms are looking at attracting leaders from larger firms 'as they believe that these executives understand how to scale." Automation has disrupted the country's $283-billion IT industry, as Fortune companies push tech service providers to deliver more at lower costs. This comes at a time when IT outsourcers are grappling with low demand and tariff volatility. A third expert said that mid-caps were struggling to find the right talent to build high-value customer relationships. 'Many of these managers lack strategic thinking skills and are far too P&L (profit and loss) focused, so when the business is struggling, they struggle to build the right client relationships to be effective," said Phil Fersht, chief executive of HFS Research. Fersht also echoed Bendor-Samuel's views, adding that 'more talent from the large providers is coming onto the job market so it's easier for the likes of Persistent, Coforge and Mphasis to upgrade their teams, hence the heavy turnover we are seeing."
Mint
7 days ago
- Business
- Mint
Eight quarters. 20% growth. These compounding stocks are beating the market. Do you own any?
Stock prices are slaves to earnings growth, but without consistency, that growth doesn't mean much. If profits rise for a quarter or two and then stumble, it signals a volatile financial story. What matters is consistent growth in both profit and revenue. Over time, that's what quietly compounds shareholder wealth. As an investor, you know how rare that kind of stability is. Most companies might post a strong quarter or two. A few manage to string together a year of momentum. But only a handful can deliver 20%+ growth in both revenue and profit, every single quarter, for two straight years. That's eight clean quarters of execution, without missing a beat. It's a matter because consistent topline and bottom-line growth usually reflects more than just favourable conditions. It signals strong demand, operational strength, and disciplined capital allocation. This consistency becomes its own kind of moat, which becomes the recipe for multibagger returns. In this piece, we look at four companies that have quietly done just that. Persistent System: new leadership, AI-led surge Persistent specializes in software products, services, and technological innovations, and provides full product lifecycle services. Its strategy centres on AI-driven and platform-led services that aim to 'Re(AI)magine the world" by applying artificial intelligence to solve clients' most critical business challenges. It focuses on high-growth sub-verticals with customized AI offerings, such as intelligent insurance operations, AI-powered payment platforms in banking, financial services & insurance, and personalized member experiences in healthcare & life sciences. Persistent's revenue and profit have grown at over 15% year-on-year (YoY) in every quarter from Q2FY24 to Q1FY26. During this period, revenue rose from ₹2,412 crores to ₹3,334 crores, while profit increased from ₹263 crores to ₹425 crores. That's eight straight quarters of consistent top and bottom-line growth. It has also delivered 20 consecutive quarters of revenue growth. Its strategic focus on AI, digital engineering excellence, strong client relationships, and targeted acquisitions has contributed to this sustained financial performance. As a result, its stock price has given a 10 times return as against a 100% return by the Nifty IT index in the last five years. It has outperformed even as the broader IT sector faced significant headwinds. A key turning point was the leadership change. A 16-year veteran of HCL Tech, Sandeep Kalra joined Persistent in 2019 and is credited with transforming the company into what it is today. The company is now aspiring to reach $2 billion in annualised revenue over the next few years. It has built strong collaborations with major technology companies, gaining a first-mover advantage in emerging AI products and roadmaps. Key partnerships include Google Cloud, AWS, Microsoft, Salesforce, and Snowflake. It also leverages its own AI platforms, SASVA, and iAURA, to deepen capabilities. Also Read: Persistent's goals seem ambitious post Q1 blip Kaynes builds scale on industry tailwinds Kaynes is a leading company in integrated electronics manufacturing and electronics system design and manufacturing (ESDM) solutions. Its business is well-diversified, with a portfolio spanning multiple industry verticals—a key differentiator. Kaynes' revenue is highly concentrated, with the industrial segment contributing 59% in Q1FY26. This is followed by automotive (27%), railways (7%), internet of things (5%), and medical and aerospace (1% each). These are low-volume, high-value segments that help the company maintain both higher margins and sustained growth. Its operating margin stands at 16.8%. Geographically, India remains the dominant market, contributing 91% of revenue, followed by North America at 5%. Customer concentration remains relatively low, with the top client accounting for 16%, the top five for 46%, and the top ten for 67%. Kaynes revenue and net profit have grown consistently at over 30% YoY in every quarter from Q1FY24 to Q1FY26. Revenue nearly doubled from ₹297 crore to ₹673 crore during this period, while net profit increased from ₹25 crore to ₹75 crore. As a result, its share has returned 753% return in about 2.9 years. The growth has been propelled by industry tailwinds, aided by supportive government policies. Initiatives such as Make in India, production-linked incentive (PLI) schemes, and the China+1 manufacturing strategy have all contributed to its strong growth. This is evident from rising investments, reflecting its intent to scale capacity to meet demand. Kaynes gross block has jumped more than four times, from ₹181 crore in FY23 to ₹789 crore by March 2025. It boasts an asset turnover ratio of 3.5x, though this has moderated from 5.2x in Q1FY25. Its order book stands at ₹7,401 crore, providing strong revenue visibility for the next three years. The company's strategic goal is to become a $1 billion revenue company by FY28. Toward this, it is expanding its ESDM services and entering new areas such as outsourced semiconductor assembly and test (OSAT) and PCB manufacturing. Also Read: Aditya Infotech IPO: Dixon was allotted shares at ₹340 apiece. Should you pay double? Tips Music rides YouTube and streaming wave Tips Music is a leading entertainment company focused on the digital content business, which includes the creation and acquisition of audio-visual music content. It owns a vast and diverse library of over 34,000 songs across all genres in 25 languages. Tips monetizes this content library digitally through licensing across multiple platforms. It has a wide presence on major global digital platforms, including YouTube, Spotify, Apple Music, and Amazon Prime. As of March 2025, Tips' official YouTube channels had 117.1 million subscribers and 228.3 billion views. It ranks among the top five music companies in terms of YouTube subscribers and video views. Digital platforms account for around 72% of Tips Music's revenue. Its revenue and profit both have grown at over 19% YoY, from Q1FY24 to Q4FY25. Revenue grew from ₹53 crore to ₹78 crore during the period, while profit rose from ₹27 crore to ₹31 crore. A significant rise in engagement on YouTube has been a key driver of this performance. Annual YouTube views have doubled from 113 billion (FY23) to 228 billion in FY25. Views also rose 6x from 38.5 billion in FY21. Growing subscriptions, rising listenership, and an expanding content base have further contributed to its growth. Looking ahead, despite a high base, Tips is aiming for 30% growth in both revenue and profit in FY26. To support this, it plans to invest 25–28% of its revenue in new content acquisition during the year. However, the company will reduce the number of new song releases. But it aims to improve content success rates to around 50%, aiming to drive more revenue through quality output. Although shorts are not a significant contributor, the company expects to tap into shorts content from the inclusion of Instagram in its licensing deal with Warner. In addition, Tips' partnership with Sony Music will be a major source of revenue growth. Tips is well-positioned to benefit from the ongoing rise in digital advertising, which is expected to dominate overall media spending. In 2024, digital ad spending made up 49% of total advertising expenditure and is projected to rise to 55% in 2025 and 61% in 2026. It also expects the Indian music industry to more than double from about ₹4,000 crore currently to ₹10,000 crore over the next four-five years. Also Read: It's a bitter time for sugar stocks, but these two are only getting sweeter PG Electroplast rides EMS tailwinds PG Electroplast is a dominant player in the electronic manufacturing services (EMS) space, a sector currently benefiting from strong structural tailwinds. The company operates across four business segments. Product manufacturing, which includes room ACs, washing machines, and air coolers, accounted for 71% of its FY25 revenue of ₹4,870 crore. The balance came from plastic and others (20%), electronics (7%), and moulds (2%). Every quarter, PG has delivered consistent revenue and profit growth of over 16% YoY from Q1FY24 to Q4FY25. That marks eight straight quarters of growth. During this period, revenue rose nearly threefold from ₹678 crores to ₹1,910 crores, while net profit jumped more than four times from ₹34 crores to ₹145 crores. Similar to Kaynes, PG is a key beneficiary of the China+1 manufacturing shift and the government's Make in India push. This is reflected in its product segment revenue, which almost tripled, from ₹1,347 crores in FY23 to ₹3,526 crores in FY25. Large capacity expansions have supported this growth. Fixed assets have also doubled from ₹578 crore (FY23) to ₹1,139 crore in FY25. This shows PG has constantly increased its capacity to meet the demand. Looking ahead, PG is well-positioned to benefit from a structural long-term tailwind in the EMS space. Rapid urbanization, government reforms, low penetration of consumer durables, and the China+1 theme are all expected to sustain growth momentum. The company expects revenue to rise 30% to ₹6,345 crores in FY26, with 75% coming from the product business. Net profit is also expected to rise 39% to ₹405 crores. To support this growth, PG is also expanding its manufacturing footprint. It is setting up a washing machine facility in Greater Noida, a refrigerator plant in the south, and an AC capacity in Supa, Maharashtra. Conclusion Consistent growth at over 20% is rare, especially across multiple quarters. But companies like Kaynes, Tips Music, and PG Electroplast are showing how it's possible. They benefited from structural industry tailwinds, focused on execution, and expanded aggressively to meet demand. They have already delivered multibagger returns, but the growth is not slowing down. For more such analysis, read Profit Pulse. Madhvendra has over seven years of experience in equity markets and writes detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.
Forbes
28-07-2025
- Business
- Forbes
The Rise Of Digital Colleagues: The Management Science Of Agentic AI
Pawan Anand, AVP of Communications, Media & Technology at Persistent, driving innovation in GenAI, Agentic AI, and Digital Engineering. A couple of years ago, large-language models wowed organizations with instant prose and picture-perfect ads. It was cool but fleeting. What's arriving now are digital colleagues: agentic AI systems that plan, decide and act within live workflows. The 2025 Gartner Hype Cycle for Artificial Intelligence classified autonomous agents as 'transformational.' Early pilots reveal a déjà vu risk: Autonomous models scale faster than the organizations meant to govern them. To keep 'move fast, break things' from replaying at enterprise scale, I use what I call the "Colleague Model"—three tightly coupled disciplines that turn eager agents into trusted teammates while still moving revenue needles. 1. Corporate Memory 2.0: Feeding Agents A Live Narrative Humans make judgments by recalling prior wins, near misses and reprimands; agents, on the other hand, need a structured analog. Pointing a model at an amorphous data lake only breeds hallucinations. Instead, you must stream a time-sequenced event spine—orders, sensor pings, support tickets—through a narration layer that labels cause, effect and policy context. In my experience, real-time, event-streamed AI slashes the time it takes to spot problems. Uber's engineering team notes that its ML-driven, streaming anomaly-detection platform halved incident-detection latency compared to previous batch pipelines. In the industry at large, I've seen online marketplaces detect and automatically stop duplicate refunds in minutes—something human auditors might not catch for weeks. For leaders, this means you need to appoint a chief event steward—part historian, part data-ops lead—to maintain your corporate backstory. This will make it so every new agent sees the same truth. 2. Policy As Physics: Embedding Governance In Every Decision Ethics slide decks don't stop a rogue API call, and they certainly won't restrain self-optimizing software. Instead, you can translate risk principles into reusable safety-rail functions that run at the decision edge—API gateways, workflow engines and even robotic PLCs. Each rail returns an 'allow,' 'review' or 'block.' Attach confidence thresholds to sensitive actions. If a pricing agent wants to discount an order with only 60% certainty, it must request human review. The information commissioner champions this human-on-the-loop pattern. With guardrails stored, legal and compliance teams can tweak risk appetite as quickly as engineers push code—with no more 30-day breaks between approval and release. Leaders should run a quarterly policy burn-down session. Outdated rules can become a visible backlog, ranked by exposure and scheduled for refactor. 3. Autonomy Scorecard: Balancing Gains, Oversight And Drift Latency and token costs still matter, but a colleague earns trust by creating value and managing risk. Implement three board-level metrics and review them alongside revenue and CSAT: • Autonomy Yield: Net revenue gained or costs avoided per 1,000 agent actions. • Supervision Load: Human minutes spent monitoring or correcting those actions. • Risk Drift Index: The share of actions escalated or rolled back by safety rails. Firms that link AI metrics directly to P&L targets are twice as likely to hit ROI thresholds, per McKinsey's 2024 survey. The trio above keeps everyone honest: If yield climbs but drift explodes, autonomy becomes a liability. This means leaders should compensate product owners on yield minus drift. Incentives shape behavior—digital and human alike. Executives often ask, 'Great framework—but how do we start next week?' Try this condensed sprint: • Day 1 Morning: Map the workflow you'll augment. Mark every digital event and analog gap. • Day 1 Afternoon: Encode the three riskiest rules as safety-rail functions. • Day 2 Morning: Pipe mock autonomy yield and risk drift into your BI tool. • Day 2 Afternoon: Launch the agent in shadow mode. Compare its suggestions with human output and tune thresholds. Most teams finish with a running prototype, a live scorecard and a backlog of gaps that must be improved before full deployment. Some may still ask, "Why is this management science, and why does this work?" To them I say the following: • Corporate memory 2.0 borrows from knowledge-management theory. • Policy as physics mirrors real-time control-systems engineering. • Autonomy scorecards align with incentive economics and portfolio theory. With this approach, if you change a variable—tighten a confidence threshold, enrich an event type—you can predict shifts in yield or drift. That makes performance testable and the discipline teachable, both of which are the hallmarks of genuine management science. The Winning Play Scientific management harnesses muscle. Statistical quality delivers precision. Agile unleashes creativity. Agentic management will marshal independent decision-making. Deploying digital colleagues—AI agents—will soon be table stakes; stewarding their judgment will be the differentiator. Start now, and the most sought-after résumé in your pipeline may belong to a line of code your teams request by name. Forbes Technology Council is an invitation-only community for world-class CIOs, CTOs and technology executives. Do I qualify?
Business Standard
24-07-2025
- Business
- Business Standard
Persistent Systems Q1 PAT climbs 7% QoQ to Rs 425 cr
Persistent System reported 7.37% jump in consolidated net profit to Rs 424.94 crore on 2.82% increase in revenue from operations to Rs 3,333.59 crore in Q1 FY26 over Q1 FY25. On a year on year basis, the companys net profit and revenue 38.7% and 21.8% QoQ in Q1 FY26. Profit before tax (PBT) stood at Rs 555.41 crore, up 9.94% QoQ and 63.9% YoY. EBIT in the June 2025 quarter, EBIT improved 2.5% to Rs 517.81 crore, compared to Rs 505.29 crore in Q4 FY25. The EBITDA margin also increased to 15.5%, up from 14% in the same period last year. In dollar terms, the IT firms revenue stood at $389.7 million in Q1 FY26, up 18.8% YoY and 3.9% QoQ. The order booking for the quarter ended on 30th June 2025, was at $520.8 million in total contract value (TCV) and at $385.3 million in annual contract value (ACV) terms. Sandeep Kalra, chief executive officer (CEO) and executive director, Persistent, said: We delivered our 21st sequential quarter of revenue growth, up 3.9% Q-o-Q and 18.8% Y-o-Y, while sustaining operating margins in a challenging macroeconomic environment. This performance reflects the strength of our AI-led, platform-driven strategy, focus on customer value creation, and our ability to unlock measurable outcomes. Our innovation-led execution and sharp focus on talent continue to drive momentum. This has earned us recognition as a Leader in the ISG Provider Lens 2025 for Digital Engineering Services and in the Everest Group Talent Readiness for Next-Gen Application Services PEAK Matrix Assessment 2025. We are also proud to achieve top rankings in Extels Asia Executive Team survey for Investor Relations and stakeholder trust. Persistent Systems is a global services and solutions company delivering digital engineering and enterprise modernization to businesses across industries. The scrip tumbled 7.16% to Rs 5204.00 on the BSE.
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Business Standard
24-07-2025
- Business
- Business Standard
Persistent Systems bleeds over 9% post mixed Q1; here's what brokerages say
Persistent Systems share price today: Shares of IT major Persistent Systems came under pressure on Thursday, July 24, 2025, falling as much as 9.29 per cent to an intraday low of ₹5,084.15 after the company posted a mixed set of results for the first quarter of FY26 (Q1FY26). Around 11:10 AM, the Persistent Systems stock was trading 8.24 per cent lower at ₹5,143.50. In comparison, BSE Sensex was down 0.26 per cent at 82,514.88 levels. Modest growth amid margin pressure Persistent reported a modest sequential growth for the quarter ended June 30, 2025. Net profit rose 7.4 per cent Q-o-Q to ₹425 crore from ₹395.7 crore, while rupee revenue grew 2.8 per cent to ₹3,333.5 crore from ₹3,242.1 crore. Ebit increased 2.5 per cent Q-o-Q to ₹517.7 crore. However, the operating margin saw a slight dip to 15.5 per cent from 15.6 per cent in the previous quarter, reflecting a marginal decline in profitability. In dollar terms, revenue came in at $389.7 million, up 3.9 per cent sequentially and 18.8 per cent year-on-year (Y-o-Y). Constant currency (CC) revenue growth stood at 3.3 per cent Q-o-Q and 19 per cent Y-o-Y. Track Stock Market LIVE Updates Vertical performance and deal wins Growth during the quarter was driven by the BFSI segment, which saw a strong 9 per cent Q-o-Q rise in revenue in USD terms, followed by the Technology segment at 3.6 per cent, Nomura note highlighted. However, the Healthcare and Life Sciences (HLS) vertical was a drag, posting a 1.9 per cent sequential decline, largely due to ongoing macro headwinds and client-side transition to offshore delivery. Persistent reported strong deal wins in the quarter with Total Contract Value (TCV) of USD 520.8 million, up 13 per cent Y-o-Y. Net new TCV and Annual Contract Value (ACV) were up ~8 per cent and ~7 per cent Y-o-Y, respectively. The book-to-bill ratio moderated slightly to 1.3x, compared to 1.4x in both Q1FY25 and Q4FY25. Mixed brokerage views Nomura termed the results a 'mixed bag,' highlighting slightly lower-than-expected revenue growth in constant currency terms. Ebit margin at 15.5 per cent was in line but down 10bps Q-o-Q. While EPS came in slightly ahead of estimates at ₹27.2, Nomura flagged risks related to slower client decision-making, especially in healthcare. The brokerage cut its FY26 revenue growth estimate by ~190bps to 16.6 per cent and trimmed FY26–27 EPS by ~3 per cent. It lowered the target price to ₹5,510 (from ₹5,700 earlier) and maintained a 'Neutral' rating, citing rich valuations. Emkay Global noted the slightly softer operating performance with revenue growth missing expectations, while Ebit margin held steady. The brokerage also pointed to the drag from the healthcare vertical due to a planned offshore shift and macro uncertainty. Despite the management reaffirming its target of $2 billion revenue by FY27 and 200-300bps margin expansion, Emkay retained a 'Reduce' rating with a target price of ₹6,000, citing expensive valuations. Nuvama Institutional Equities analysts, however, maintained a more optimistic stance. While acknowledging that revenue growth marginally missed its 3.5 per cent CC Q-o-Q estimate, the brokerage noted strong TCV growth and reiterated confidence in Persistent's long-term growth story. It highlighted the company's reaffirmed guidance of achieving $2 billion revenue by FY27, despite a volatile macro backdrop. Nuvama retained its 'Buy' rating, raising its target price to ₹6,600 from ₹6,250, and increased its valuation multiple to 48x FY27 PE (from 45x earlier). Check List of Q1 results today Persistent Systems outlook Management commentary indicated caution amid macroeconomic and geopolitical uncertainty. Persistent Systems noted a slowdown in decision-making across clients, particularly in the US healthcare segment, where regulatory changes and payer transitions are affecting demand. The company also delayed its annual salary hike cycle to Q3FY26 to manage margins and said it would continue to focus on pricing, utilisation, and sales leverage to achieve its medium-term profitability targets. That said, while Persistent Systems reported steady growth in Q1FY26 with robust deal wins and improved profit, the marginal miss on topline estimates and slight pressure on margins led to negative investor sentiment. With the stock trading at a premium valuation, brokerages remain split on its near-term prospects, though the long-term structural story remains intact.
