NEWGEN - Newgen Software
📢 Recent Corporate Announcements
Newgen Software's US subsidiary has signed a Master Service Agreement with a Caribbean-based insurance company for its NewgenONE platform. The contract is valued at USD 1.495 million, which translates to approximately INR 13.77 crore. The engagement covers supply, installation, implementation, and maintenance services over a three-year period. This international win underscores Newgen's strengthening presence in the global digital transformation market for the insurance industry.
- Total contract value is USD 1,495,000 (approximately INR 13.77 Crore)
- The agreement spans a 3-year execution period for implementation and support
- Order involves the flagship NewgenONE Digital Transformation Platform
- The client is an international insurance company situated in the Caribbean region
- Scope includes license, implementation, and Annual Maintenance Services (AMC)
Newgen Software Technologies Limited has announced the retirement of Mr. Manojit Majumdar, who served as the Vice President-Channel Sales. Designated as Senior Management Personnel, his retirement was effective from the close of business hours on February 27, 2026. The departure is classified as superannuation, indicating a planned transition rather than an unexpected resignation. The company has fulfilled its regulatory obligations under SEBI Listing Regulations regarding this management change.
- Mr. Manojit Majumdar retired from his role as Vice President-Channel Sales effective February 27, 2026.
- The cessation of service is due to superannuation (standard retirement).
- The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Newgen Software Technologies has announced a Non-Deal Road Show (NDR) scheduled for February 23-24, 2026, in the United Arab Emirates. The company's management will participate in one-on-one, in-person meetings with institutional investors to discuss business prospects. The discussions will be based on the already public Q3 FY'26 investor presentation. This move indicates management's proactive approach to engaging with international investors and increasing global visibility.
- Management to conduct a Non-Deal Road Show in the UAE on February 23-24, 2026.
- The engagement will consist of one-on-one meetings with institutional investors.
- Discussions will focus on the Q3 FY'26 financial results and corporate presentation.
- The event is an in-person interaction aimed at strengthening international investor relations.
Newgen Software Technologies Limited has announced its participation in the Dolat Capital Corporate Conference 2026, themed 'Decoding Growth Strategies'. The event is scheduled for February 18, 2026, in Mumbai, starting at 11:00 AM IST. Company officials will engage with multiple institutional investors and analysts through one-on-one and group meetings. This routine disclosure highlights the company's ongoing engagement with the investment community to discuss its strategic direction.
- Participation in Dolat Capital Corporate Conference 2026 scheduled for February 18, 2026
- Interaction format includes both one-on-one and group meetings with analysts and investors
- Event theme 'Decoding Growth Strategies' suggests a focus on future business expansion and outlook
- Meetings are set to commence from 11:00 AM IST onwards in Mumbai
- Disclosure made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Newgen Software's Dubai-based subsidiary has secured a contract worth AED 5.31 million (approximately INR 13.07 crore) from a large UAE government organization. The agreement involves providing software licenses, implementation, and support for an 'Automatic Exchange of Information - Pillar 2' tax compliance system. The contract spans a three-year execution period, providing steady revenue visibility from an international client. This win underscores Newgen's growing presence in the Middle East and its ability to deliver specialized regulatory compliance solutions.
- Total contract value is AED 5,309,103, equivalent to approximately INR 13.07 Crore.
- The contract duration is 3 years for licenses, implementation, and support services.
- The client is a reputable government organization in the UAE, enhancing Newgen's international portfolio.
- The project focuses on specialized Pillar 2 tax compliance systems, showcasing niche technical capabilities.
Newgen Software Technologies has faced a legal setback as the Appellate Court in Qatar dismissed its appeal against a previous adverse judgment. The company is now liable to pay a customer USD 1,370,000 along with QAR 200,000 in damages and additional court costs. While the company is evaluating a further appeal to the Court of Cassation, the immediate financial liability has been upheld. Management maintains that there is no other material impact on business operations beyond these specific financial payments.
- Appellate Court in Qatar dismissed the company's appeal on January 26, 2026
- Ordered to pay a customer USD 1,370,000 (approximately INR 11.4 Crores)
- Additional compensation of QAR 200,000 (approximately INR 45 Lakhs) plus court costs mandated
- Company is currently evaluating the option of filing a further appeal before the Court of Cassation
- No other material impact on business or operations reported by the management
Newgen Software reported a modest 5% Y-o-Y revenue growth to ₹400 crores in Q3 FY26, facing challenges from a high base and elongated decision cycles in large enterprise deals. Despite overall sluggishness, subscription revenue grew strongly by 29% Y-o-Y to ₹134 crores, and the US market showed robust 21% growth. The company's adjusted PAT stood at ₹90 crores with a 22.5% margin, excluding a one-time ₹35 crore impact from new Indian labor code changes. Management remains optimistic about long-term AI-led growth and a recovery in license revenues.
- Q3 Revenue reached ₹400 crores (up 5% Y-o-Y), while 9M FY26 revenue stood at ₹1,122 crores (up 7% Y-o-Y).
- Subscription revenue grew 29% Y-o-Y to ₹134 crores, contributing to a total annuity revenue of ₹250 crores.
- US geography led growth at 21% Y-o-Y, while India and EMEA regions witnessed weaker performance during the quarter.
- A one-time provision of ₹35 crores was made for the new Indian labor code, impacting reported net profit.
- Major deal wins include a ₹38.6 crore order from a Saudi bank and a $5.3 million contract from a US financial institution.
Newgen Software Technologies has officially released the audio recording of its conference call held on January 20, 2026. The call focused on the company's financial performance for the third quarter and the nine-month period ending December 31, 2025. This disclosure is a standard regulatory requirement under SEBI (LODR) Regulations, 2015. Investors can access the recording via the company's investor relations portal to hear management's detailed commentary on business operations.
- Audio recording of the Q3 FY26 earnings call is now available for public access
- The conference call was conducted on January 20, 2026, following the results announcement
- Covers financial and operational performance for the nine months ended December 31, 2025
- Compliance filing under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements
Newgen Software reported a steady 6% YoY revenue growth for 9M FY'26, reaching Rs 1,122 crore, while adjusted PAT grew 7% to Rs 222 crore. The company is seeing strong momentum in its high-margin segments, with SaaS revenue growing 48% and overall subscription revenue up 29% in Q3. Geographically, the US market performed well with 21% growth, and the company added 34 new logos during the nine-month period. While statutory PAT was impacted by new labor codes, the underlying business momentum in AI-driven solutions remains robust.
- 9M FY'26 Revenue grew 6% YoY to Rs 1,122 crore, with Adjusted PAT rising 7% to Rs 222 crore.
- Q3 FY'26 SaaS revenue witnessed a robust growth of 48% YoY, driving overall subscription revenue up by 29%.
- US geography revenue grew by 21% YoY in Q3, reaching Rs 96 crore.
- Onboarded 34 new customer logos in 9M FY'26, including 7 in the third quarter.
- Adjusted PAT margin for Q3 stood at 22.5%, though statutory PAT was lower at Rs 62.8 crore due to labor code impacts.
Newgen Software reported a steady Q3 FY'26 with revenue growing 5% YoY to Rs 4,003 million, supported by a strong 20% growth in annuity revenues. Adjusted Profit After Tax (PAT) saw a marginal increase of 1.3% YoY to Rs 901 million, maintaining a healthy PAT margin of 22.5%. The company secured significant international orders, including a Rs 38.6 crore deal in Saudi Arabia and a $5.3 million contract in the US. While overall growth was modest, the continued shift toward high-margin annuity and SaaS models strengthens the long-term business profile.
- Q3 FY'26 revenue reached Rs 4,003 million, marking a 5% YoY growth, while 9M FY'26 revenue rose 6% to Rs 11,217 million.
- Annuity revenues, comprising SaaS, support, and AMC, grew by 20% YoY in Q3, improving revenue predictability.
- Major global wins include a Rs 38.6 crore project in Saudi Arabia and a $5.3 million enterprise content platform deal in the US.
- Added 7 new customer logos in Q3, bringing the total to 34 for the first nine months of the fiscal year.
- Banking and Financial Services remains the dominant vertical, contributing 71% of the total revenue.
Newgen Software reported a consolidated revenue of ₹400.28 crore for Q3 FY26, representing a modest 5% growth compared to ₹381.11 crore in the same quarter last year. Net profit for the quarter declined by 29.4% YoY to ₹62.82 crore, primarily dragged down by a one-time exceptional charge of ₹35.10 crore related to the impact of Labour Codes. However, excluding this exceptional item, the operational Profit Before Tax (PBT) actually grew by 8% YoY to ₹115.15 crore. For the nine-month period ended December 2025, the company maintained steady growth with total income reaching ₹1,184.39 crore.
- Consolidated Revenue from operations grew 5% YoY to ₹40,027.75 lakhs in Q3 FY26.
- Net Profit declined to ₹6,281.51 lakhs from ₹8,900.17 lakhs YoY due to a ₹3,509.78 lakh exceptional item.
- Operational Profit Before Tax (before exceptional items) stood at ₹11,515.09 lakhs, up from ₹10,663.07 lakhs in Q3 FY25.
- Nine-month (9M FY26) consolidated revenue reached ₹1,12,172.73 lakhs compared to ₹1,05,698.94 lakhs in 9M FY25.
- Basic EPS for the quarter decreased to ₹4.46 from ₹6.36 in the corresponding previous year quarter.
Newgen Software Technologies has scheduled its Q3FY26 earnings conference call for January 20, 2026, at 4:00 PM IST. The call will feature the company's top leadership, including the Chairman, CEO, and CFO, to discuss financial performance and business outlook. This routine interaction follows the disclosure of quarterly results and provides a platform for analysts and investors to seek clarifications on growth and margins. International access is provided via toll-free numbers for the USA, UK, Singapore, and Hong Kong.
- Conference call to discuss Q3FY26 results scheduled for January 20, 2026, at 16:00 IST.
- Top management including CMD Diwakar Nigam and CEO Virender Jeet will represent the company.
- Universal dial-in numbers provided are +91 22 6280 1144 and +91 22 7115 8045.
- International toll-free access available for major global financial hubs including USA (1 866 746 2133) and UK (0 808 101 1573).
Newgen Software Technologies Limited has announced the successful passage of a postal ballot resolution for the appointment of Ms. Shubhi Nigam as a Non-Executive Non-Independent Director. The resolution was passed with an overwhelming majority, receiving 99.37% of the total votes cast. Out of the 8.57 crore votes polled, which represents approximately 60.23% of the total shares, only 0.63% were against the proposal. This move strengthens the company's board composition following the record date of December 5, 2025.
- Resolution for appointment of Ms. Shubhi Nigam passed with 99.3681% votes in favour
- Total votes polled were 8,57,11,537, representing 60.2255% of the total 14,23,17,787 shares
- Promoter group cast 6,30,31,608 votes, all 100% in favour of the resolution
- Public institutional investors showed strong support with 98.3185% voting in favour
- Only 5,41,591 votes (0.6319%) were cast against the resolution across all categories
Newgen Software Technologies has filed its quarterly compliance certificate under Regulation 74(5) of SEBI Regulations for the period ending December 31, 2025. The document, provided by KFin Technologies, confirms the status of dematerialization and rematerialization requests. For this specific quarter, the company reported that no securities were received for processing. This filing is a standard procedural requirement for all listed entities in India to maintain transparency in shareholding records.
- Compliance certificate filed for the quarter ended December 31, 2025
- Confirmed by Registrar and Share Transfer Agent KFin Technologies Limited
- Zero securities received for dematerialization or rematerialization during the quarter
- Standard regulatory submission under SEBI (Depositories and Participants) Regulations
Newgen Software Technologies Limited has announced the resignation of Mr. Vivek Mani Tripathi, who held the position of Vice President - Human Resource Department. As a designated Senior Management Personnel (SMP), his departure is a material disclosure under SEBI regulations. The resignation was effective from the close of business hours on December 31, 2025. The company cited personal reasons for his departure and has already relieved him of his duties.
- Resignation of Vivek Mani Tripathi, Vice President of Human Resources.
- Designated as Senior Management Personnel (SMP) under SEBI Listing Regulations.
- Cessation of service effective from the close of business hours on December 31, 2025.
- The reason for the resignation is stated as personal reasons.
Financial Performance
Revenue Growth by Segment
The Banking and Financial Services vertical is the primary driver, contributing 71% of total revenue. Insurance and Healthcare follows at 14%, Government/PSU at 7%, and other sectors at 8%. The company witnessed a 19.5% overall revenue growth in FY25, reaching INR 1,486.9 Cr.
Geographic Revenue Split
EMEA is the largest contributor with 11.0% YoY growth. APAC showed the strongest growth at 58.9% YoY. The USA market grew by 20.3% YoY, while the Indian market grew by 14.1% YoY. Approximately 70% of total revenues originate from international markets.
Profitability Margins
Net Profit Margin (PAT) improved to 21.2% in FY25 from 20.23% in FY24. Return on Equity (ROE) stood at 23.01%, and Return on Capital Employed (ROCE) was 24.47%. Profitability is driven by a shift toward higher-margin mature markets and optimized service delivery through AI.
EBITDA Margin
EBITDA margin was 25.47% in FY25, up from 23.18% in FY24. Absolute EBITDA grew 30.5% YoY to INR 376.21 Cr. This expansion is attributed to higher absorption of fixed costs and increased revenue per customer.
Capital Expenditure
Property, Plant, and Equipment stood at INR 172.16 Cr in FY25, an increase from INR 164.52 Cr in FY24. This expenditure was primarily directed toward purchasing computers for business activities and setting up office premises.
Credit Rating & Borrowing
The company maintains a healthy financial risk profile with an interest coverage ratio of 78.84 times. It has negligible reliance on external debt with an adjusted debt-to-networth ratio of 0.00, indicating it is virtually debt-free.
Operational Drivers
Raw Materials
As a software company, Newgen's primary 'raw material' is human capital. Employee costs and rentals constitute a large fixed cost base. Research and Development (R&D) investments represent 9% of revenue, and Sales and Marketing represent 21%.
Import Sources
Not applicable for software products; however, the company has a direct presence in 8 countries for service delivery and talent sourcing.
Key Suppliers
Not applicable for software products. Procurement is focused on technology infrastructure, such as computers and office assets for its 4,600 personnel.
Capacity Expansion
Current capacity is defined by its workforce of approximately 4,600 personnel and its presence in 77 countries. Expansion is focused on increasing the 'New Logo' additions, which reached 62 in FY25.
Raw Material Costs
Employee costs are the most significant operational expense. The company leverages AI to optimize service delivery, which helped mute manpower additions in Q2 FY26 while maintaining growth.
Manufacturing Efficiency
Efficiency is measured by revenue per customer and the transition to annuity-based revenues, which reached INR 833.75 Cr (56% of total revenue) in FY25.
Logistics & Distribution
Distribution is handled through direct and indirect sales channels across 77 countries, focusing on digital delivery of ECM, BPM, and CCM platforms.
Strategic Growth
Expected Growth Rate
20%
Growth Strategy
Growth is targeted through the NewgenONE low-code platform, focusing on larger banking customers in mature markets (USA, Europe, Canada, Australia). The strategy involves increasing annuity-based subscription revenue and reinvesting 21% of revenue into aggressive sales and marketing.
Products & Services
Enterprise Content Management (ECM), Business Process Management (BPM), Customer Communications Management (CCM), and the NewgenONE hyper-automation platform.
Brand Portfolio
Newgen, NewgenONE, Number Theory.
New Products/Services
Focus on Generative AI, Machine Learning, and Cloud-based solutions integrated into the NewgenONE platform to enhance workforce productivity and customer journey transformations.
Market Expansion
Targeting mature markets including USA, Europe, Canada, and Australia with specific go-to-market strategies for large-sized banking customers.
Market Share & Ranking
Recognized by Gartner and Forrester; named in Forbes Asia's 'Best Under a Billion' list for the second consecutive time in 2025.
Strategic Alliances
The company utilizes both direct and indirect sales channels and partner networks to grow brand presence in new markets.
External Factors
Industry Trends
The industry is shifting toward Hyper-automation, Low-code platforms, and Generative AI. Newgen is positioning itself by investing 9% of revenue in R&D to stay ahead of technological obsolescence.
Competitive Landscape
Competes globally in the ECM, BPM, and CCM markets against both domestic and international software product companies.
Competitive Moat
Moat is built on 33 years of domain expertise, 55 patent filings, and high switching costs associated with core banking and insurance process platforms. These are sustainable due to deep vertical integration.
Macro Economic Sensitivity
Sensitive to global economic uncertainties and recessions which could lead to reduced customer spending on software solutions.
Consumer Behavior
Increasing demand for digital-first customer journeys and automated regulatory compliance in the banking and insurance sectors.
Geopolitical Risks
Geopolitical tensions and shifts in global fiscal policies are identified as challenges that could impact international revenue and business continuity.
Regulatory & Governance
Industry Regulations
Operations must comply with global data security and quality management standards (ISO), audited by specialized third-party consultants.
Environmental Compliance
Honored with the 'CSR & Sustainability Award 2025' in the Education category; maintains a 'Great Place to Work' certification.
Taxation Policy Impact
The company follows standard corporate tax rates; specific fiscal policy impacts include benefits from export-oriented operations.
Legal Contingencies
The company faces risks related to intellectual property (IP) protection and potential inadvertent infringement of third-party IP, which could lead to litigation. Specific case values are not disclosed in available documents.
Risk Analysis
Key Uncertainties
Employee attrition (28% rate) and the ability to attract highly skilled professionals are critical risks. Global economic downturns could impact the 19.5% growth trajectory.
Geographic Concentration Risk
EMEA is the largest contributor, but the company is actively de-risking by expanding in the USA and APAC (which grew 58.9%).
Third Party Dependencies
Dependency on specialized third-party consultants for periodic audits and business-specific compliances.
Technology Obsolescence Risk
Mitigated by continuous R&D (9% of revenue) and a focus on emerging technologies like GenAI and low-code platforms.
Credit & Counterparty Risk
Net DSO stands at 124 days. The company establishes allowances for impairment based on expected credit losses; trade receivables were INR 521 Cr as of Sep 2025.