Persistent Systems533179IT services
Persistent Systems shares fell about 4.5% as margins and bottom line missed estimates, hurt by Nagro acquisition integration costs and European deal ramp-down
By ScoutQuest · · 1 min read
- Stock decline
- 4.5 percent
- EBIT margin decline
- 100 basis points
- Expected margin decline
- 40 basis points
- European geography decline
- 8.5 percent
- Persistent PE valuation
- 35 to 40x
Heard on business television between 12:17:45 - 12:20:45 IST.
- Stock fell about 3-4.5% in trade, with some recovery from day's low.
- Top line and CC growth were largely in line with estimates, but EBIT margin declined 100 basis points versus an expected 40 basis point decline, hurt by direct costs and operational inefficiencies.
- European geography was weak, down 8.5%, due to deal ramp-down, adding to overhang.
- Street remains concerned about Nagro acquisition integration and ramp-up, with the company planning to raise long-term debt to fund it.
- Valuations remain a concern, with Persistent trading at 35-40x PE versus large-cap IT peers at 10-15x PE.
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Source: Live TV News Channel · 16 Oct 2026
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