Newgen Software Technologies (NEWGEN) Q3 25/26 earnings summary

Executive summary

• Nine-month revenue reached INR 1,122 crores (Rs 11,217 million), up 7% year-over-year, with 34 new logos onboarded, reflecting strong business momentum and global enterprise trust.

• Q3 revenue was INR 400 crores (Rs 4,003 million), a 5% year-over-year increase, despite a high base from last year’s strong license sales.

• Annuity revenues grew 20% year-over-year in Q3 and 15% for the nine-month period, with robust subscription growth in the U.S., U.K., and Australia.

• Adjusted profit after tax for Q3 was INR 90 crores (Rs 901 million), with net margins at 22.5%.

• Seven new customer logos were added in Q3, with major deals in Saudi Arabia, U.S., Europe, Malaysia, and India across banking, insurance, and automotive sectors.

Financial highlights

• Q3 annuity revenues were INR 250 crores, up 20% year-over-year; subscription revenue within this was INR 134 crores, up 29% year-over-year.

• Total income for Q3 was Rs 4,203 million, up 7.9% year-over-year; adjusted EBITDA margin was 26.5%.

• Basic EPS for Q3 was Rs 6.42 (up 0.9% YoY); for 9M was Rs 15.79 (up 6.7% YoY).

• Net profit for the quarter was ₹6,281.51 lakhs, compared to ₹8,900.17 lakhs last year, reflecting a decrease due to exceptional items.

• Net cash from operating activities for nine months was INR 154 crores; net trade receivables stood at INR 530 crores as of December 31, 2025, with net DSO of 125 days.

Outlook and guidance

• Management remains confident of license recovery in upcoming quarters, supported by a strong deal pipeline.

• Larger enterprise deals are facing elongated decision cycles, especially in India and Middle East, due to AI-led uncertainty and macro factors.

• Subscription and annuity models are expected to provide more predictable growth, with license revenue remaining lumpy.

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

• The company continues to monitor regulatory changes, particularly regarding the new Labour Codes, and will adjust accounting as needed.