Newgen Software Technologies (NEWGEN) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 consolidated revenue rose 5.4% YoY to ₹42,224.06 lakh; H1 revenue grew 8.0% to ₹77,892.43 lakh.

• Annuity revenue grew 14.7% YoY, and subscription revenue exceeded license revenue; EBITDA margin was 25.8% and adjusted PAT margin 20.6%.

• Management reaffirmed its double-digit FY27 revenue growth target, citing SaaS momentum and expected H2 deal closures.

Financial highlights

• Q2 total income was INR 4,337 Mn, up 4.7% YoY; EBITDA was INR 1,090 Mn, up 6.5%, and PAT excluding exceptional items was INR 869 Mn, up 6.3%.

• Consolidated Q2 net profit was ₹8,688.20 lakh versus ₹8,174.24 lakh YoY; H1 net profit was ₹14,970.31 lakh versus ₹13,146.30 lakh.

• H1 EBITDA was INR 1,650 Mn, up 11.9%, and adjusted PAT was INR 1,497 Mn, up 13.9%.

• SaaS revenue grew 36.4%, support 10.3%, ATS 7.9%, and annuity 15%; license revenue declined 19.2% against a strong prior-year base.

• Implementation revenue recovered sequentially after Q1 milestone slippages were completed in Q2.

Outlook and guidance

• FY27 double-digit revenue growth remains the target; H2 growth is expected to improve, with license pipeline closures expected to support Q3 and Q4.

• H1 SaaS deals are expected to support subscription revenue in coming quarters; management expects implementation growth to continue and delayed deals to close.

• FY net margin guidance remains 20%–22%; management expects to maintain margins, with potential for expansion through efficiency and cost optimization.

• Priorities include sustaining EMEA and U.S. momentum, improving India and APAC conversion, scaling SaaS and annuity, and strengthening collections and working capital efficiency.