Newgen Software Technologies (NEWGEN) Q3 25/26 earnings summary

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 quarters.

• 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, 22.5% margin), and for nine months was INR 222 crores (Rs 2,216 million, 19.8% margin).

• Unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025 were approved by the Board, with no material misstatements reported by auditors.

Financial highlights

• Q3 annuity revenues were INR 250 crores, up 20% year-over-year; subscription revenue 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%.

• Net profit for the quarter was INR 62.82 crores (Rs 628.15 million), down from INR 89 crores (Rs 890.02 million) last year due to exceptional items.

• Basic EPS for Q3 was Rs 6.42 (up 0.9% YoY); consolidated basic EPS was ₹4.46, down from ₹6.36 last year.

• Net cash from operating activities for nine months was INR 154 crores; networth as of March 31, 2025, stood at Rs 15,164 million.

Outlook and guidance

• Confident of license recovery in upcoming quarters, supported by a strong deal pipeline, though large enterprise deals face elongated decision cycles.

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

• Management highlights continued focus on digital transformation and expanding global presence.

• The company continues to monitor regulatory changes, particularly regarding the new Labour Codes, and will adjust accounting as needed.

• Subscription, mature market, and cloud revenues expected to grow, reducing reliance on license revenues.