NSE: NEWGEN · BSE: 540900
NEWGEN SOFTWARE TECH LTD
Develops and sells enterprise software platforms — content management, process automation, loan origination systems and insurance policy administration systems — to banks, insurers, governments and other large organisations. Earnings come from two models: recurring annuity revenue (subscriptions, support, SaaS licences — 62% of FY26 revenue) and one-time implementation revenue from project deployments. FY26 revenue of ₹1,574.4 cr split across four geographies: EMEA at 31.1%, India at 28.8%, USA at 23.4% and APAC at 16.7%. The largest vertical is BFSI (banking, financial services and insurance); insurance and healthcare together grew 58% YoY in Q1 FY27 to ₹79 cr. Headcount stood at roughly 4,200 and employee cost is the dominant expense at 47.1% of revenue, with other operating expenses at 27.1%. The company carried no debt at FY26 year-end. FY26 added 47 new customers, lifting the count of clients billing above ₹5 cr from 87 to 101. AR · MarketPing reader · 2026-08-03
Revenue streams, as the annual report describes them. EMEA (31%), India (29%), USA (23%), APAC (17%). Asset-light enterprise software with recurring annuity model plus project-based implementation
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 779 | 974 | 1,244 | 1,487 | 1,574 |
| EBITDA (ex other income) | 195 | 212 | 288 | 376 | 362 |
| margin % | 25.0 | 21.8 | 23.2 | 25.3 | 23.0 |
| Owners' profit | 164 | 176 | 252 | 315 | 301 |
| EPS, as reported (₹) | 23.65 | 25.32 | 18.02 | 22.53 | 21.38 |
| ROE % · ROCE % | 20.2 · 23.8 | 18.0 · 21.2 | 20.6 · 23.6 | 20.8 · 25.2 | 16.9 · 20.8 |
| Debt / equity (x) | 0.01 | 0.00 | 0.04 | 0.00 | 0.00 |
| Cash from operations | 143 | 136 | 281 | 215 | 232 |
| Capex | (13) | (17) | (14) | (23) | (10) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 361 | 381 | 430 | 321 | 401 | 400 | 453 | 357 |
| Profit before tax | 93 | 107 | 141 | 64 | 105 | 80 | 138 | 82 |
| Net profit | 70 | 89 | 108 | 50 | 82 | 63 | 106 | 63 |
| EPS (₹) | 5.03 | 6.36 | 7.73 | 3.55 | 5.82 | 4.46 | 7.56 | 4.44 |
Exhibit 3: Segment revenue, FY26
| Segment | Revenue, ₹ crore | Share % |
|---|---|---|
| India | 453 | 28.8 |
| EMEA | 489 | 31.1 |
| APAC | 263 | 16.7 |
| USA | 369 | 23.4 |
| Total, before eliminations | 1,574 | 100.0 |
Exhibit 4: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| TATA CONSULTANCY SERV LT | 9,03,878 | 18.1 | 8.33 | 12.4 | 45.6 | 53.9 | 10.2 | 26.9 |
| INFOSYS LIMITED | 4,71,713 | 15.7 | 5.06 | 9.9 | 31.6 | 38.6 | 12.2 | 25.7 |
| HCL TECHNOLOGIES LTD | 3,85,530 | 22.1 | 5.13 | 13.8 | 22.1 | 26.2 | 11.5 | 20.9 |
| WIPRO LTD | 1,85,195 | 14.8 | 2.10 | 8.8 | 15.0 | 17.1 | 8.4 | 22.9 |
| TECH MAHINDRA LIMITED | 1,77,517 | 31.3 | 5.90 | 19.9 | 16.0 | 18.8 | 8.5 | 16.8 |
| LTM LIMITED | 1,20,167 | 23.0 | 4.98 | 14.5 | 20.7 | 24.8 | 27.9 | 20.0 |
| PERSISTENT SYSTEMS LTD | 92,008 | 47.4 | 11.74 | 31.5 | 23.8 | 28.5 | 28.6 | 17.8 |
| COFORGE LIMITED | 88,367 | 40.6 | 9.13 | 31.5 | 18.0 | 17.2 | 28.6 | 18.6 |
Exhibit 5: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 21.1 | 15.1 | 37 of 65 | 44% |
| P/B | 3.7 | 2.6 | 39 of 65 | 41% |
| ROCE | 20.5 | 14.2 | 24 of 76 | 69% |
| ROE | 16.9 | 11.5 | 19 of 64 | 71% |
| Debt / Equity | 0.0 | 0.0 | 1 of 65 | 67% |
| EBITDA margin | 25.8 | 18.4 | 13 of 65 | 81% |
| Revenue growth | 11.2 | 10.6 | 30 of 63 | 53% |
| Profit growth | 26.4 | 6.7 | 18 of 62 | 72% |
| Market cap | 6648 | 425 | 19 of 76 | 76% |
Exhibit 6: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 24 Oct 2026 · Newspaper ad for unaudited Q2 and half-year results | compliance | minimal | — | — |
| 23 Oct 2026 · Conference call audio for Q2 FY2027 results posted | investor communications | low | — | — |
| 23 Oct 2026 · Chairman and Managing Director remains unavailable due to indisposition | management changes | critical | — | — |
| 23 Oct 2026 · Q2 FY27 revenue rises 5%, profit margin reaches 20.6% | compliance | minimal | — | — |
| 23 Oct 2026 · Q2 FY27 revenue rises 5.4%; 10 AI deals reported in bookings | investor communications | medium | — | — |
| 23 Oct 2026 · Newgen approves merger of wholly owned subsidiary | strategic transactions | medium | — | — |
| 23 Oct 2026 · Q2 FY27 revenue and profit rise; subsidiary merger scheme approved | results | high | — | — |
| 21 Oct 2026 · Management to hold investor meetings in Mumbai from October 26 to 28 | board shareholder meetings | low | — | — |
| 19 Oct 2026 · Newgen Software to host Q2 FY27 results call on October 23, 2026 | board shareholder meetings | low | — | — |
| 16 Oct 2026 · Newgen UK arm bags GBP 1.63 mn order from UK retirement firm | business updates | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.