Persistent Systems shares surge 8% after Q2 earnings; TechM sees muted response

The Nifty IT index witnessed a mixed trend on Wednesday, despite firm cues from the broader market, with shares of Persistent Systems surging after a strong Q2 performance, while index heavyweight Tech Mahindra declined following subdued September-quarter results.

Shares of Persistent Systems rose as much as 7.6% to ₹5,728.90 on the BSE, while its market capitalistion climbed to ₹88,650 crore. On the other hand, Tech Mahindra shares dropped as much as 1.85% ₹1,440.90, while its market cap slipped to ₹1.43 lakh crore.

Meanwhile, the Nifty IT index was marginally up by 0.4%, driven by mid-sized IT stocks. Coforge shares advanced over 3%, hitting an intraday high of ₹1,754, while LTIMindtree traded up by 2%.

Meanwhile, sectoral heavyweights like Infosys and HCLTech saw muted movement, slipping slightly to ₹1,472.10 and ₹1,496.50 respectively, amid cautious investor sentiment post earnings announcements.

In contrary, the BSE benchmark was up 545 points at 82,575, while the NSE Nifty50 gained 0.68% to 25,316.

The rally in Persistent Systems shares was driven by its robust Q2 results, which was better than Street expectations. The mid-tier IT company reported a 45.07% year-on-year (YoY) jump in net profit to ₹471.4 crore for the second quarter ended September 30, 2025, compared to ₹324.99 crore in the year ago period.

The company’s revenue from operations increased 23.59% to ₹3,580 crore, compared with ₹2,897.15 crore in the corresponding period of the preceding fiscal.

At the operating level, EBIT rose 43.7% to ₹583 crore in the second quarter of this fiscal, compared with ₹406.2 crore in the same period last year.

Meanwhile, Tech Mahindra reported a 4.5% year-on-year decline in consolidated net profit to ₹1,195 crore for Q2 FY26, primarily due to the absence of a one-time gain from a land sale recorded in the same period last year. On a sequential basis, net profit and revenue grew 4.7% and 4.8%, respectively.

Revenue from operations rose 5.1% to ₹13,995 crore, supported by strong performance in the banking and manufacturing verticals. The company also announced an interim dividend of ₹15 per share, with the record date set for October 21.

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