Persistent Systems , a prominent player in the IT services sector, saw its shares tumble nearly 8% following the release of its quarterly results that fell short of analyst expectations. The company's performance indicators revealed a slowdown in growth and raised concerns among investors.

Revenue Growth Deceleration

Persistent Systems reported a deceleration in its sequential revenue growth in dollar terms, which stood at 3.9% compared to 5.6% in the same quarter of the previous year. The company's revenue reached $389.70 million for the quarter.

Healthcare Division Struggles

The healthcare division, which contributes over 25% of the company's revenue, experienced a setback with a 2.2% sequential decline, bringing in $98.50 million. This downturn was attributed to planned onsite-to-offshore work transfers and project delays.

Financial Highlights

Operational Challenges and Strategies

Persistent Systems is facing slower client decision-making processes, although the company reported no pricing pressure. To address these challenges, the company has implemented the following measures:

• Deferred employee salary increases by one quarter
• Set a target of 100 basis points margin improvement for FY26

Analyst Perspectives

• Emkay Global: Cut earnings estimates by 2% for FY26-28 and maintained a 'reduce' rating, citing rich valuation.
• Motilal Oswal: Reiterated a 'buy' call with a target price of ₹6,800.

Market Response

The stock traded at ₹5,169.00, reflecting investor concerns about the company's growth trajectory and valuation.

Persistent Systems' management remains focused on navigating the current market conditions and improving operational efficiency. However, the company's ability to accelerate growth and meet analyst expectations in the coming quarters will be crucial for restoring investor confidence.

Persistent Systems Limited, a leading IT services company, has announced a significant change in its leadership team, marking a new chapter in its human resources department.

Leadership Transition

Persistent Systems has revealed that Yogesh Patgaonkar has retired from his position as Chief People Officer and Senior Management Personnel (SMP) effective July 31, 2025. Following this transition, the company has appointed Rajiv Naithani as the new Chief People Officer, with his tenure beginning on August 1, 2025.

New Chief People Officer Profile

Rajiv Naithani brings a wealth of experience to his new role, boasting over two decades of human resource expertise within the IT industry. Prior to this appointment, Naithani had been serving as the Senior Vice President – HR & OD and SMP at Persistent Systems since February 3, 2025.

Naithani's educational background is impressive, showcasing his commitment to the field of human resources:

• PGDHRM from Symbiosis Institute of Business Management, Pune
• PGCHRM from XLRI
• Organization Development Certification Program (ODCP) from the Indian Society for Applied Behavioural Science (ISABS)

Company Statement

In an official communication to the National Stock Exchange of India Limited and BSE Limited, Persistent Systems stated, "Mr. Rajiv Naithani has been designated as the Chief People Officer of the Company, with effect from August 1, 2025 (IST)." The company described Naithani as "a very passionate and articulate Human Resource leader" in their filing.

Regulatory Compliance

The company has made this announcement in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure adheres to the SEBI Master Circular dated November 11, 2024, ensuring transparency in corporate governance matters.

This leadership transition underscores Persistent Systems' commitment to maintaining a strong and experienced management team as it continues to navigate the dynamic IT services landscape.