Newgen Software Technologies (NEWGEN) Q4 25/26 earnings summary

Executive summary

• FY 2026 revenue grew 6% year-over-year to INR 1,574 crores (₹15,744 million), with improved revenue mix from subscription-based models and annuity revenues comprising 62% of total.

• Subscription revenues rose 24% YOY to INR 525 crores; SaaS component up 36% YOY.

• Added 47 new customer logos and expanded relationships, with customers billing over INR 5 crore (Rs 50 million) rising from 87 to 101.

• Key wins included deals in Malaysia, Illinois (US), Kuwait, the Caribbean, and UAE, totaling significant order values.

• Certified as a Great Place to Work for the second consecutive year.

Financial highlights

• Profit after tax for FY 2026 was INR 301 crore (₹30,057.64 lakhs); adjusted for one-time items, profit after tax was INR 334 crore, up 6% YOY.

• EBITDA rose 7.9% YoY to Rs 4,058 million; EBITDA margin improved to 25.8%.

• Q4 revenue reached INR 457 crores (₹4,527 million), up 5.3% YOY; Q4 SaaS revenue grew 44% YOY.

• Net cash from operating activities was INR 302 crores (₹23,185.93 lakhs).

• Dividend declared at INR 6 per share.

Outlook and guidance

• Management remains optimistic about growth in APAC and US, with strong deal pipelines and deferred revenue streams.

• Uncertainty persists in Middle East and India due to geopolitical and decision-making delays; guidance for FY 2027 will be clearer after one more quarter.

• Double-digit growth remains the aspiration, but management is cautious due to recent market volatility.

• Total bookings increased 13% YoY, indicating a strong future pipeline.

• The company continues to monitor regulatory changes, especially regarding labour codes, and will adjust accounting as needed.