Newgen Software Technologies (NEWGEN) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue reached INR 401 crore (₹4,008 million/₹40,079.35 lakhs), up 11% YoY, with strong growth in U.S. and APAC regions and subscription revenues up 20% YoY.

• Profit after tax for Q2 FY26 was INR 82 crore (Rs 817 million/₹8,174.24 lakhs), up 16% YoY, with a PAT margin of 20.4%.

• Added 15 new customer logos and secured large, multi-year deals in the UK, Europe, Ghana, U.S., and India.

• Focused on product innovation, AI-driven solutions, and expanding presence in banking, insurance, and private enterprise segments.

• Unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2025 were approved by the Board and received an unqualified limited review.

Financial highlights

• Subscription revenue for Q2 FY26 was INR 126 crore, up 20% YoY; H1 FY26 revenue was Rs 7,214 million, up 6.7% YoY.

• Adjusted EBITDA for Q2 FY26 was Rs 1,024 million, up 23.4% YoY; EBITDA margin was 25.5%.

• Basic EPS for Q2 FY26 was 5.82, up 15.8% YoY; diluted EPS was 5.69, up 16.9% YoY.

• Net trade receivables stood at INR 521 crore as of September 30, 2025, with DSO at 112 days.

• Robust cash flow from operations at INR 90 crore for the six-month period; net cash generated from operating activities for H1 FY26 was ₹8,957.69 lakhs.

Outlook and guidance

• Management expects continued momentum in H2, with healthy deal pipelines and improved project closures, especially in new and mature markets.

• Margin guidance remains around 20%, with potential for expansion as subscription revenue and mature market sales increase.

• Focus remains on reinvesting in growth, particularly in sales, marketing, and R&D.

• The business model is resilient with large annuity revenue streams and diversification across geographies and verticals.

• Dividend of ₹5.00 per equity share for FY25 was approved and paid on 1 August 2025.