Persistent Systems Ltd Quarterly Results

At 09:38 AM on Friday, the Nifty IT index was the top gainer among sectoral indices, up 1.8 per cent, as compared to a 1 per cent rise in the Nifty 50.

In the past four trading days, IT index outperformed the market by soaring 9 per cent, as against a 2 per cent gain in the Nifty 50.

The Nifty IT currently quotes around 20 per cent below its 200-DMA. TCS, Infosys, Wipro and HCL Technologies are down in the range of 21-26 per cent form respective 200-DMAs.

In the past 20 trading days, the Nifty IT index tanked 17 per cent, as against a 2.2 per cent rise in the Nifty 50 till Wednesday.

Analysts expect another subdued quarter for IT services companies as macroeconomic uncertainty, delayed deal conversions and AI-led pricing pressures weigh on growth and margins

Persistent CEO Sandeep Kalra says Nagarro can match the company's growth rate within 6-12 quarters as integration, cross-selling and capability expansion gather pace

The Nagarro acquisition expands Persistent's global footprint but raises concerns over slower growth, integration challenges and execution risks amid a steep acquisition premium

Persistent announced the acquisition of German digital engineering firm Nagarro SE through a voluntary public takeover offer at €81/share in cash, implying an EV of €1.27 billion.

The all-cash acquisition, backed by Nagarro's largest shareholder, will expand Persistent's European presence and is expected to take combined annual revenue to about $2.9 billion

In the past three weeks, the Nifty IT index tanked 13 per cent, as against 2 per cent rise in the Nifty 50.