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Newgen Software Technologies (NEWGEN) investor relations material
Newgen Software Technologies Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Nine-month revenue reached INR 1,122 crores (Rs 11,217 million), up 7% year-over-year, with 34 new logos onboarded, reflecting strong business momentum and global enterprise trust.
Q3 revenue was INR 400 crores (Rs 4,003 million), a 5% year-over-year increase, despite a high base from last year’s strong license sales.
Annuity revenues grew 20% year-over-year in Q3 and 15% for the nine-month period, with robust subscription growth in the U.S., U.K., and Australia.
Adjusted profit after tax for Q3 was INR 90 crores (Rs 901 million), with net margins at 22.5%.
Seven new customer logos were added in Q3, with major deals in Saudi Arabia, U.S., Europe, Malaysia, and India across banking, insurance, and automotive sectors.
Financial highlights
Q3 annuity revenues were INR 250 crores, up 20% year-over-year; subscription revenue within this was INR 134 crores, up 29% year-over-year.
Total income for Q3 was Rs 4,203 million, up 7.9% year-over-year; adjusted EBITDA margin was 26.5%.
Basic EPS for Q3 was Rs 6.42 (up 0.9% YoY); for 9M was Rs 15.79 (up 6.7% YoY).
Net profit for the quarter was ₹6,281.51 lakhs, compared to ₹8,900.17 lakhs last year, reflecting a decrease due to exceptional items.
Net cash from operating activities for nine months was INR 154 crores; net trade receivables stood at INR 530 crores as of December 31, 2025, with net DSO of 125 days.
Outlook and guidance
Management remains confident of license recovery in upcoming quarters, supported by a strong deal pipeline.
Larger enterprise deals are facing elongated decision cycles, especially in India and Middle East, due to AI-led uncertainty and macro factors.
Subscription and annuity models are expected to provide more predictable growth, with license revenue remaining lumpy.
The business model remains resilient with large annuity revenue streams and diversification across geographies and verticals.
The company continues to monitor regulatory changes, particularly regarding the new Labour Codes, and will adjust accounting as needed.
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