Persistent Systems fixes record date for Rs 18 final dividend; check details

Persistent Systems Ltd has fixed July 27, 2026 as the record date for its proposed final dividend of Rs 18 per equity share (face value Rs 5) for the financial year 2025-26 (FY26).

The IT firm had recommended the final dividend, subject to shareholders' approval at its 36th Annual General Meeting (AGM), which is scheduled to be held on August 3, 2026.

In an exchange filing on Saturday, Persistent Systems said: "The Final Dividend, if approved by the Members at the 36th AGM scheduled to be held on Monday, August 3, 2026, will be paid to the members within 30 days of its declaration."

The record date is used to determine the shareholders eligible to receive the proposed dividend, subject to its approval at the AGM.

On Friday, Persistent Systems shares settled 4.22 per cent higher at Rs 5,033. Despite the day's gain, the stock is still down 20.52 per cent over the last six months.

The recent weakness in the stock follows the company's announcement of its proposed acquisition of Munich-headquartered digital engineering firm Nagarro. Persistent has agreed to acquire Nagarro for an enterprise value of EUR 1.27 billion.

According to Axis Direct, the transaction will be funded through debt of EUR 1.4 billion. The brokerage said Persistent has already secured an approximately 21 per cent stake in Nagarro through an agreement with its founding shareholder. The deal is structured as a voluntary public takeover, with a minimum acceptance threshold of 50 per cent plus one share.

"The acquisition is expected to strengthen the company's presence in Europe while adding complementary industrial and consumer verticals to its existing portfolio. The transaction is expected to be completed by Q3 CY26/Q1 CY27," Axis Direct said.

The brokerage noted that Persistent has delivered a revenue/EBIT/PAT CAGR of 21 per cent/24 per cent/25 per cent over FY23-FY26, driven by strong execution, deal wins and strategic technology adoption. It believes the acquisition valuation appears reasonable compared with global digital engineering peers, given Nagarro's strong European franchise, diversified client base and complementary capabilities in AI, SAP and enterprise applications.

At the same time, Axis Direct said the acquisition cost could weigh on Persistent's earnings in the near term. However, it expects revenue synergies, operational improvements and sustained client retention to support the company's operational performance over the longer term.

The brokerage has retained its 'Buy' rating on Persistent Systems with an unchanged target price of Rs 6,270. "Currently, the company is trading at 27x/23x P/E multiples of FY27E/FY28E. We value the company at 34x FY28E EPS and maintain our BUY rating on the stock with an unchanged TP of Rs 6,270/share," it said.