India · Delayed Price · Currency is INR Newgen Software Technologies Earnings Call Transcripts
Fiscal Year 2026
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Revenue grew 7% year-over-year for the nine months, with strong subscription and annuity growth, especially in the U.S. and APAC. Large deal closures are delayed due to AI-driven uncertainty, but the pipeline remains robust and investments in AI and R&D continue.
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Q2 FY26 saw 11% YoY revenue growth to INR 401 crore, with strong gains in U.S. and APAC and robust subscription growth. Profit after tax reached INR 82 crore, and large deal wins spanned multiple geographies. Order book growth exceeded 20% YoY.
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Q1 FY26 saw muted growth due to global uncertainties, with revenue at INR 321 crores and net margin of 15.5%. Subscription revenues grew 19% YoY, while deal closures slowed, especially for large banking projects. Management expects improvement in H2 as AI investments and a strong funnel support future growth.
Fiscal Year 2025
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FY25 revenue grew 20% to INR 1,487 crore, with strong license and implementation growth, while annuity revenues are expected to recover in the next two quarters. APAC and US markets drove expansion, and new AI products and marquee deals position the company for continued momentum.
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Q3 FY25 saw 18% revenue growth and 30% profit growth, led by strong license sales and broad-based deal wins. Banking, insurance, and government segments are driving momentum, with 90% of bookings expected to convert to revenue in FY26.
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Q2 FY25 saw 23% YoY revenue growth, strong license sales, and robust performance in APAC, EMEA, and India. Profit after tax rose 47% YoY, with annuity growth temporarily softer due to longer execution cycles. Insurance and government segments are expected to drive future growth.
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Q1 FY25 saw 25% year-over-year revenue growth to INR 315 crores, with PAT up 58% and strong regional performance, especially in APAC. The company launched a GenAI banking platform, expanded global partnerships, and maintained a 15% PAT margin.