Newgen Software Technologies Limited has informed the Exchange about Transcript
NEWGEN · price
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Newgen Software reported Q2 FY'26 revenue of INR 401 crores, up 11% year-on-year, with subscription revenue growing 20% to INR 126 crores. The company added 15 new customer logos and posted a profit after tax of INR 82 crores with net margins of 20.4%. US and APAC regions led growth at 22% each, while India grew 7% and EMEA just 3%. Management highlighted strong deal wins in mature markets, including a GBP 3 million UK deal, a EUR 4.2 million European retail contract, a USD 5.6 million Ghana loan management deal, and an INR 21.24 crore Indian general insurance contract. Order book growth is running above 20% year-on-year (mid-20s or higher). Management continues to invest 9% of revenue in R&D and 21% in sales and marketing, with AI-driven productivity targeted to lower service delivery costs by 20-30% over the next 2-3 years.
The strong quarter with healthy subscription growth, expanding margins, and a robust order book signals positive momentum heading into H2 FY'26. However, slower growth in India and EMEA on large license deals remains a watchpoint, while the pending Qatar court case (USD 1.4 million claim) is being treated as a contingent liability and could become a headwind if the appeal fails.