BSE IT Technology Sector Regulatory Filings — July 11, 2026

Consolidated revenue grew 18% YoY to ₹116,080 million, with Technology & Services (+9.7% USD YoY) and Consumer (+17.3% USD YoY) segments driving growth. EBIT margin expanded 120 bps YoY to 15.5%, indicating operational efficiency gains despite headwinds.

Standalone revenue grew 16.6% YoY to ₹109,883 million, but net profit declined 4.4% YoY due to an 89.4% plunge in other income (₹509M vs ₹4,787M) and a 60.4% surge in sub-contracting expenses (₹13,791M). This divergence signals underlying cost pressures.

The proposed acquisition of Nagarro SE is a transformative, high-growth strategy that could significantly expand Persistent's global footprint and capabilities, pending shareholder approval at the August 3 AGM.

The company announced a total dividend of INR 40 per share (INR 22 interim + INR 18 final) for FY 2025-26, reflecting strong cash generation and a commitment to shareholder returns.

Order inflow was $1.68 billion in Q1 FY27, up 3.1% YoY but down 0.3% QoQ, indicating steady demand but a slight sequential slowdown. Utilization (ex-trainees) fell 170 bps YoY to 86.4%, suggesting capacity under-utilization.

TTM attrition improved 110 bps YoY to 13.3%, flat sequentially, indicating better employee retention and cost stability.

The company reported its 24th consecutive quarter of growth, demonstrating consistent execution and a strong track record.

The Board approved reclassification of Nabha Power Limited from 'Promoter Group' to 'Public' category, a governance move that could simplify the corporate structure and reduce promoter entanglement.

Standalone net profit declined 4.4% YoY and 6.1% QoQ despite revenue growth, driven by a 89.4% YoY crash in other income (₹509M vs ₹4,787M). This is a significant earnings quality risk.

Sub-contracting expenses surged 60.4% YoY to ₹13,791 million, indicating heavy reliance on external talent, which can compress margins and signal internal capacity constraints.

Financial Services segment revenue declined 2.6% USD YoY and Production segment fell 6.0% USD QoQ, highlighting weakness in key verticals.

USD revenue growth was modest at +0.1% QoQ, suggesting currency tailwinds may be masking underlying growth challenges.

The company recognized an exceptional item of ₹622M in Q4 FY26 and ₹5,281M for FY26 related to past service costs under new Labour Codes, indicating one-time but significant regulatory cost impacts.

The Nagarro SE acquisition is a large, complex cross-border deal that carries integration, cultural, and regulatory risks, with no valuation details disclosed yet.

Employee benefits expense rose 8.0% YoY and other expenses increased 17.7% YoY, outpacing revenue growth and pressuring margins.

The proposed acquisition of Nagarro SE could be a transformative deal, significantly boosting Persistent's scale and capabilities in Europe and digital engineering. Shareholders should evaluate the deal terms at the August 3 AGM.

With consolidated EBIT margin expanding 120 bps YoY to 15.5% and strong growth in Technology & Services (+9.7% USD YoY) and Consumer (+17.3% USD YoY), the company is well-positioned in high-growth segments.

The final dividend of ₹53 per share for FY26 was approved and paid, offering a solid yield for income-focused investors.

The final dividend of INR 18 per share (total INR 40 for FY26) provides a strong income component, with the record date on July 27, 2026, offering a near-term catalyst.

The Shareholder Satisfaction Survey (open until August 14, 2026) signals a focus on improving investor relations and transparency, which could lead to better communication and governance practices.

The reclassification of Nabha Power from 'Promoter Group' to 'Public' could unlock value by simplifying the group structure and reducing governance risks.

With 24 consecutive quarters of growth and a strong annual report theme of 'Re(AI)magining™ the Enterprise', the company is a leader in AI-driven enterprise solutions, a high-growth market.

Both LTIMindtree (18% YoY revenue growth) and Persistent Systems (24 quarters of growth) show strong top-line expansion, but rising costs (sub-contracting +60.4% YoY for LTM) and declining other income are compressing net profits, a common theme in the IT sector. [IMPLICATION: Investors should focus on margin trends and cost control measures.]

Persistent Systems' proposed acquisition of Nagarro SE signals a trend of Indian IT firms pursuing large-scale cross-border acquisitions to gain scale and capabilities, especially in digital engineering and AI. [IMPLICATION: Watch for similar M&A moves from other BSE IT constituents.]

Both LTIMindtree (₹53 final dividend) and Persistent Systems (INR 40 total dividend) are returning significant cash to shareholders, indicating strong balance sheets and a commitment to shareholder returns. [IMPLICATION: IT stocks may offer attractive dividend yields in a rising rate environment.]

LTIMindtree's Technology & Services (+9.7% USD YoY) and Consumer (+17.3% USD YoY) segments, along with Persistent's focus on 'Re(AI)magining™ the Enterprise', highlight AI and digital transformation as key growth drivers. [IMPLICATION: Companies with strong AI capabilities are likely to outperform.]

LTIMindtree's reclassification of Nabha Power from 'Promoter Group' to 'Public' and its Shareholder Satisfaction Survey indicate a trend toward better corporate governance and transparency in the sector. [IMPLICATION: Governance improvements can reduce risk premiums and attract institutional investors.]

The 36th AGM on August 3, 2026, will vote on the Nagarro SE acquisition and final dividend. The outcome and deal details are critical catalysts. [Date: August 3, 2026]

The record date for dividend eligibility and e-voting is July 27, 2026. Investors should ensure they are on the register by this date. [Date: July 27, 2026]

Watch for Q2 FY27 results to see if standalone profit decline reverses and if sub-contracting costs stabilize. [Expected: October 2026]

The survey closes on August 14, 2026. Results may indicate shareholder sentiment and areas for improvement. [Date: August 14, 2026]

Monitor regulatory approvals for the reclassification of Nabha Power Limited from 'Promoter Group' to 'Public', which could impact governance. [No specific date]

Monitor regulatory approvals and integration progress post-AGM. Any delays or negative developments could impact stock. [No specific date]

The 2.6% USD YoY decline in Financial Services is a key risk. Watch for any recovery in this segment in upcoming quarters. [No specific date]