Newgen Software Technologies Limited (NEWGEN)
₹493.90 +0.88% last close, 16 Oct
Q2 FY27 results
📅 Next results: 23 Oct 2026 (board meeting)Newgen Software Technologies Limited's board meets on 23 Oct 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Newgen Software's revenue was ₹357 Cr (+11.3% year on year, -21.2% on the previous quarter), and net profit ₹63.0 Cr (+26.7% year on year); the operating margin was 15.7%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹357 | +11.3% | -21.2% |
| Operating profit | ₹56.0 | +24.4% | -63.2% |
| Net profit | ₹63.0 | +26.7% | -40.6% |
| EPS (₹) | 4.41 | +24.2% | -41.0% |
| Operating margin | 15.7% | — | — |
NEWGEN delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 22.55% of the NEWGEN shares traded on NSE were taken to delivery, against the stock's own 20-session average of 34.67%. That is lower than usual for this stock.
Delivery in the last 5 sessions: 42.2% · 24.1% · 33.5% · 22.9% · 22.6%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Newgen Software Technologies' wholly owned UK subsidiary has secured a GBP 1.63 million (approximately ₹20.51 crore) contract from Just Retirement Management Services Limited. The contract spans a 3.5-year execution period and covers document management systems, implementation services, software licenses, cloud hosting, and support. Relative to Newgen's TTM revenue of ₹1,611 crore, the deal represents approximately 1.3% of annual sales. The deal aligns with the company's strategy to expand subscription and cloud services across mature international markets.
- Total contract value of GBP 1.63 million (converted to ₹20.51 crore at GBP/INR 125.85)
- Contract execution timeline is 3.5 years with Just Retirement Management Services Limited
- Scope includes Newgen's Enterprise Content Management (OmniDocs), OmniOMS, Managed Cloud, and implementation
- Deal represents approximately 1.3% of the company's TTM revenue of ₹1,611 crore
Newgen Software Technologies has announced the retirement of Key Managerial Personnel Mr. Surender Jeet Raj, EVP-Global Business Strategy and HR. The cessation takes effect from the close of business hours on October 12, 2026, due to superannuation. The company has a current workforce of approximately 4,600 personnel and generates TTM revenues of Rs 1,611 Cr. As this is a scheduled superannuation rather than an abrupt resignation, operational disruption is expected to be minimal.
- Retirement of EVP-Global Business Strategy and HR, designated as KMP, effective October 12, 2026
- Cessation of service is due to superannuation at the close of business hours on October 12, 2026
- Company operates with around 4,600 employees across 77 countries and TTM revenue of Rs 1,611 Cr
Newgen Software Technologies' US subsidiary has secured an agreement valued at $5,475,020 (₹52.55 crore) with a US health insurance company. The scope involves license, implementation, cloud hosting, and support for the NewgenONE Complaints, Appeals and Grievances (CAG) solution. The contract spans a 3-year execution period, contributing approximately 3.3% of the company's TTM revenue of ₹1,575 crore. The transaction is not a related party deal, and counterparty details remain confidential.
- Contract aggregate value of US Dollars 5,475,020 (₹52.55 Crore at 1 USD = INR 95.98)
- Execution timeline spans a period of 3 Years
- Scope covers license, implementation, Annual Maintenance, cloud hosting, and Support Services
- Customer is an overseas health insurance company situated in USA (name withheld for confidentiality)
Newgen Software Technologies has executed a software agreement with an overseas customer situated in Qatar valued at US$ 1,791,140 (approx. ₹17.14 crore). The scope covers software licenses, implementation services, and three years of maintenance and support for an international regulatory reporting and compliance platform. Relative to Newgen's TTM revenue of ₹1,575 crore, this contract is modest, representing about 1.1% of annual revenue. The deal aligns with the company's focus on expanding its NewgenONE platform and generating recurring support revenue.
- Contract aggregate value of US$ 1,791,140 (₹17.14 crore at 1 USD = INR 95.71)
- Scope includes software licenses, implementation, and 3 years of maintenance and support
- Customer is an overseas entity based in Qatar (name withheld due to confidentiality)
- Non-related party transaction for regulatory reporting and compliance solution
CRISIL Ratings has reaffirmed its highest short-term credit rating of 'CRISIL A1' for the bank facilities of Newgen Software Technologies Limited. The total bank loan facilities rated were enhanced from Rs 96 Crore to Rs 125 Crore, comprising Rs 115 Crore in export credit/bill discounting and Rs 10 Crore in bank guarantees. The reaffirmed rating remains valid until March 31, 2027, reflecting the company's strong liquidity and virtually debt-free balance sheet (Debt/Equity of 0.02).
- CRISIL reaffirmed the short-term rating at CRISIL A1
- Total rated bank loan facilities enhanced to Rs 125 Crore from Rs 96 Crore
- Export Packing Credit & Export Bills Negotiation facilities stand at Rs 115 Crore
- Bank Guarantee facility stands at Rs 10 Crore
- Rating is valid until March 31, 2027
Newgen Software Technologies responded to an exchange surveillance query regarding a significant increase in trading volume on August 30, 2026. The company clarified that there is no undisclosed price-sensitive information or material event bearing on its operations or performance under Regulation 30 of SEBI LODR. Management stated that the volume movement is attributable to broader market factors, investor sentiment, and sectoral trends beyond its control.
- Clarification issued in response to NSE surveillance query letter ref. no. NSE/CM/Surveillance/17434 dated August 28, 2026.
- Management confirmed full compliance with Regulation 30 disclosures under SEBI LODR.
- Company affirmed it has no pending undisclosed material events affecting operations or share volume as of August 30, 2026.
Newgen Software Technologies Limited has notified exchanges of its participation in the 'ASHWAMEDH - ELARA INDIA DIALOGUE 2026' investor conference scheduled for September 1, 2026, in Mumbai. Company officials will engage in one-on-one and group interactions with analysts and institutional investors. This is a procedural disclosure under Regulation 30, with no financial or material operational developments reported.
- Conference name: ASHWAMEDH - ELARA INDIA DIALOGUE 2026
- Scheduled date of meeting: 1 September 2026 (Tuesday)
- Interaction type: One-on-one and Group Meetings in Mumbai
- Filing date: 24th August 2026
Newgen Software Technologies has announced its participation in the Avendus Spark INDX-Asia Edition 2026 conference. Company officials are scheduled to hold one-on-one and group meetings with analysts and institutional investors in Hong Kong on August 12 and Singapore on August 14, 2026. With a current market capitalization of Rs 7,939 Cr and TTM revenue of Rs 1,575 Cr, these interactions are part of the company's routine investor relations to maintain visibility in international financial hubs.
- Investor meetings scheduled for August 12, 2026, in Hong Kong.
- Investor meetings scheduled for August 14, 2026, in Singapore.
- Participation in the Avendus Spark INDX-Asia Edition 2026 conference.
- Company maintains a healthy TTM Operating Profit Margin of 25.7%.
- Current promoter holding stands stable at 53.52% as of March 2026.
Newgen Software Technologies' shareholders have approved all five resolutions at the 34th Annual General Meeting held on July 24, 2026. A key outcome is the formal approval of a ₹6 per share final dividend for FY26, which implies a total payout of approximately ₹85.5 crore based on the 14.25 crore shares outstanding. This payout represents roughly 28.4% of the company's TTM PAT of ₹301 crore. Additionally, shareholders approved the re-appointment of M/s Walker Chandiok & Co LLP as Statutory Auditors for a second five-year term.
- Final dividend of ₹6 per share approved for the financial year ended March 31, 2026
- Total of 5 resolutions passed with requisite majority, including adoption of FY26 financial statements
- Overall voter turnout recorded at 65.79% of the 142,510,002 total shares
- Statutory Auditors M/s Walker Chandiok & Co LLP re-appointed for a second term of 5 years
- Institutional voting on the dividend resolution saw 21.74% of polled votes against, though the resolution passed with 96.57% total favor
Newgen Software Technologies held its 34th AGM, reporting FY26 consolidated revenue of ₹1,574.4 Cr, a 6% YoY growth. A key structural shift was highlighted with annuity-based revenue now contributing 62% of the total, enhancing predictability. The company proposed a final dividend of ₹6 per share (60% of face value). High-value client engagement improved, with the number of customers billing over ₹5 Cr increasing from 87 to 101 during the fiscal year.
- Consolidated revenue for FY26 reached ₹1,574.4 Cr, reflecting a 6% year-on-year growth.
- Annuity revenue contribution increased to 62% of total revenue, up from previous levels.
- Proposed a final dividend of ₹6 per equity share for the financial year 2025-26.
- High-value customer base (>₹5 Cr billing) expanded from 87 to 101 accounts.
- Added 47 new customer logos and filed 12 additional patents, bringing the total filings to 67.
Newgen Software reported a steady Q1 FY'27 with revenue growing 11% YoY to ₹357 Cr, supported by a robust 40% growth in SaaS and subscription revenue. The company announced a significant leadership transition, with 33-year veteran Tarun Nandwani taking over as CEO effective August 1, 2026. Profit After Tax (PAT) rose 26% YoY to ₹63 Cr, maintaining a healthy net margin of 17.6%. Key order wins across Kuwait, Philippines, India, and the UK totaling over ₹70 Cr highlight continued global expansion despite slower project starts in the EMEA region.
- Revenue from operations increased 11% YoY to ₹357 Cr for Q1 FY'27.
- SaaS and license subscription revenue grew 40% YoY to approximately ₹60 Cr.
- PAT grew 26% YoY to ₹63 Cr, representing a 17.6% net margin.
- Secured a major insurance platform transformation project in Kuwait valued at ₹26.7 Cr.
- USA geography witnessed the strongest regional growth at 27% YoY.
Newgen Software has released the audio recording of its conference call held on July 16, 2026, regarding the unaudited financial results for the quarter ended June 30, 2026. This is a standard regulatory disclosure following the quarterly earnings announcement. The company, which has a TTM revenue of Rs 1,575 Cr and a market cap of Rs 7,665 Cr, typically uses these calls to discuss its 20% growth target and the performance of its NewgenONE platform. Investors can access the recording via the provided URL to understand management's outlook on mature market expansions.
- Audio recording of the conference call held on July 16, 2026, is now available.
- The call pertains to the unaudited financial results for the quarter ended June 30, 2026.
- Company maintains a TTM revenue of Rs 1,575 Cr and a TTM PAT of Rs 301 Cr.
- Management strategy focuses on a 20% growth rate through the NewgenONE low-code platform.
Newgen Software reported a robust 26% YoY increase in Profit After Tax (PAT) to ₹63 Cr for Q1 FY'27, significantly outperforming its 11% revenue growth of ₹357 Cr. The growth was underpinned by a 40% surge in SaaS revenues and a 27% revenue jump in the US market. The company secured four major strategic wins across Kuwait, Philippines, India, and the UK totaling approximately ₹73 Cr. Annuity-based revenue now accounts for 71% of total quarterly revenue, enhancing business predictability.
- Profit After Tax (PAT) increased 26% YoY to ₹63 Cr, with a PAT margin of 17.6%.
- SaaS and License Subscription revenues grew 40% YoY to ₹60 Cr, reflecting a shift toward recurring models.
- US geography revenue grew 27% YoY to ₹92 Cr, leading broad-based international growth.
- Added 10 new enterprise logos during the quarter, including a ₹26.7 Cr (KWD 875,000) project in Kuwait.
- Annuity revenue streams (ATS/AMC, support, and cloud/SaaS) reached ₹254 Cr, up 14% YoY.
Newgen Software reported a steady start to FY'27 with Q1 revenue reaching ₹356.7 cr, an 11.2% increase YoY. Profitability outperformed revenue growth, with PAT rising 26.3% to ₹62.8 cr compared to ₹49.7 cr in Q1 FY'26. The company secured four major strategic wins across Kuwait, Philippines, India, and the UK, totaling approximately ₹73 cr. However, working capital cycles showed stress as debtor days increased to 145 days from 123 days in the previous year's first quarter.
- Q1 FY'27 Revenue grew 11.2% YoY to ₹356.7 cr from ₹320.7 cr in Q1 FY'26
- Net Profit (PAT) increased 26.3% YoY to ₹62.8 cr, reflecting improved operational margins
- Secured a major transformation project in Kuwait valued at approximately ₹26.7 cr (KWD 875,000)
- Annuity revenue streams (ATS/AMC and Cloud) contributed 62% of total FY'26 revenues
- Debtor days stretched to 145 days in Q1 FY'27, up from 123 days in Q1 FY'26
Newgen Software's Board has approved the Q1 FY27 financial results and updated the authorization of Key Managerial Personnel (KMP) for materiality disclosures, effective August 1, 2026. Tarun Nandwani is designated as the incoming CEO. The filing also details significant exceptional items from the previous fiscal year (FY26), including a Rs 30.05 Cr impact from new Labour Codes and a Rs 13.37 Cr legal settlement in Qatar. A dividend of Rs 6.00 per share for FY26 is currently awaiting shareholder approval.
- Tarun Nandwani authorized as CEO for materiality disclosures effective August 1, 2026
- Exceptional expense of Rs 30.05 Cr recognized in FY26 for Labour Code adjustments (gratuity and absences)
- Legal dispute in Qatar concluded with a total exceptional charge of Rs 13.37 Cr (USD 1.37 million plus legal costs)
- Recommended dividend of Rs 6.00 per share for FY26 pending AGM approval
- Q1 FY27 unaudited standalone and consolidated financial results approved by the Board on July 16, 2026
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.
