Newgen Software Technologies Limited has informed the Exchange about Transcript
NEWGEN · price
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Newgen Software Technologies reported a muted Q1 FY26, with revenues at INR 321 crores, impacted by slower customer decision-making amid global economic uncertainty, US tariffs, and geopolitical tensions. Subscription revenue (SaaS, ATS/AMC) grew 19% year-on-year to INR 121 crores, and the company won 12 new logos during the quarter. Key wins included a USD 2.5 million deal with an EMEA bank and a USD 1.6 million deal with a Saudi finance company. Profit after tax stood at INR 50 crores with net margins at 15.5%, while operating cash flow was robust at INR 81 crores. Management noted a healthy pipeline but acknowledged that larger deals (previously INR 20-50 crores) are facing slower decision-making, while smaller tactical deals (INR 4-9 crores) continue to close. R&D spend was 9% of revenues and sales & marketing was 26%. The CEO declined to provide formal FY26 growth guidance, treating the quarter as an exception and expressing confidence in H2 recovery.
The muted Q1 performance and reluctance to commit to FY26 growth guidance may pressure the stock near-term, though the strong subscription growth, healthy pipeline, and management's confidence in H2 recovery along with continued AI-led investments should provide some support.