Newgen Software Technologies (NEWGEN) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 401 crore (Rs 4,008 million), up 11% YoY, with subscription revenues up 20% YoY and 15 new customer logos added; strong demand in the U.S. and APAC, both growing 22% YoY.

• Profit after tax for Q2 FY26 was INR 82 crore (Rs 817 million), up 16% YoY, with a PAT margin of 20.4%.

• Major contract wins included deals in the UK, Europe, Ghana, Americas, and India, spanning enterprise content management, cloud, and policy administration.

• Significant investments in AI-driven products, launch of the Newgen Developer Community, and recognition in Forrester, Gartner, and Forbes Asia Best Under a Billion.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY26 were approved by the Board and received an unqualified limited review.

Financial highlights

• Q2 FY26 consolidated revenue was ₹40,079.35 lakhs (INR 401 crore), up from ₹36,115.75 lakhs in Q2 FY25; subscription revenue grew 20% YoY to INR 126 crore.

• Profit after tax for Q2 FY26 stood at INR 82 crore (₹8,174.24 lakhs), with net margins of 20.4%.

• Adjusted EBITDA for Q2 FY26 was Rs 1,024 million, up 23.4% YoY; EBITDA margin at 25.5%.

• Net cash generated from operating activities for H1 FY26 was INR 90 crore (₹8,957.69 lakhs).

• Basic EPS for Q2 FY26 was 5.82, up from 5.03 in Q2 FY25.

Outlook and guidance

• Management expects continued momentum in H2 FY26, with healthy deal funnels and improvements in project closures, especially in new and mature markets.

• Focus remains on expanding in India and Middle East, deepening presence in banking and insurance, and leveraging AI for productivity and growth.

• Margin guidance remains around 20%, with potential for expansion as subscription revenue and mature market sales increase.

• The business model is resilient with large annuity revenue streams and diversification across geographies and verticals.

• Dividend of ₹5.00 per equity share for FY25 was approved and paid.