Newgen Software Technologies (NEWGEN) Q4 24/25 earnings summary

Executive summary

• Achieved FY25 revenue of INR 1,48,687.92 lakhs (INR 1,487 crore), up 20% year-over-year, with strong growth in license (+41%) and implementation (+25%) revenues.

• Profit after tax for FY25 rose 25% to INR 31,524.24 lakhs (INR 315 crore), with basic EPS at INR 22.53.

• Added 62 new customer logos and increased customers with billing over INR 50 million from 65 to 87.

• Launched AI-driven products (Lumen, Harper, Marwin) and recognized as a leader in Forrester Wave for content platforms.

• Board approved a dividend of INR 5 per equity share for FY25, subject to AGM approval.

Financial highlights

• Q4 FY25 revenue reached INR 4,299 million (INR 430 crore), a 15% year-over-year increase; Q4 PAT was INR 1,083 million (INR 108 crore).

• Annuity revenues contributed 56% of total, reaching INR 8,337 million (INR 834 crore), with temporary slowdown due to delayed deal execution.

• EBITDA for FY25 was INR 3,762 million, up 31% year-over-year; EBITDA margin expanded to 25.3%.

• Net cash from operating activities for FY25 was INR 2,150 million (INR 215 crore).

• Order book at FY25-end stood at INR 1,640 crore, up ~10% year-over-year.

Outlook and guidance

• Management expects annuity revenue growth to normalize in the next two quarters as delayed deals go live.

• Confident in maintaining 20%+ growth, driven by new deals, especially in US, APAC, and insurance/government sectors.

• SaaS revenues expected to improve, with strong pipelines in US, Australia, and UK.

• Margins expected to expand if growth exceeds 20%; tax rate to stabilize at 23%.

• Emphasis on mission-critical solutions across banking, insurance, and government verticals.