Newgen Software Technologies reported a 5% year-on-year revenue growth for the second quarter of FY’27, reaching ₹422 crore. Profit after tax increased by 6% to ₹87 crore. The company highlighted strong annuity and SaaS revenue growth, strategic customer wins, and new product launches as key drivers.
Newgen Software Reports Strong Q2 FY’27 Financials
Newgen Software Technologies Limited announced its financial results for the second quarter ended September 30, 2026, showcasing a healthy revenue growth of 5% year-on-year. Total revenues for Q2 FY’27 reached ₹422 crore, up from ₹401 crore in the same quarter last year. Profit after tax saw a growth of 6% year-on-year, amounting to ₹87 crore.
Key Financial Highlights
The company’s consolidated financial highlights for Q2 FY’27 include:
- Revenue from operations stood at ₹422 crore, a 5% increase from ₹401 crore in Q2 FY’26.
- Annuity revenue streams, comprising ATS/AMC, support, and cloud/SaaS and subscription licenses, grew by 15% to ₹268 crore.
- Subscription revenues were reported at ₹150 crore, an 18% growth, with the SaaS component alone witnessing a significant 36% growth.
- Profit after tax was ₹87 crore, up 6% year-on-year, with the Profit After Tax (PAT) Margin improving to 20.6%.
- Employee costs as a percentage of revenue improved to 45% from 47% in Q2 FY’26, reflecting operational efficiencies.
Business Performance and Strategy
Commenting on the results, Mr. T.S. Varadarajan, Co-Founder and Executive Vice Chairman, stated that Q2 FY’27 was characterized by healthy revenue growth, resilient margins, and a stronger recurring-revenue mix. The company continues to focus on enhancing operational efficiencies and cost controls.
Newgen is leveraging its 34 years of experience to address evolving customer requirements through its governed AI platform and industry-specific AI solutions. The first half of the year saw 10 AI-based deal bookings across Banking & Financial Services and Government sectors. Investments in NewgenONE and its AI-led orchestration capabilities are ongoing to enable enterprises transition to governed, intelligent execution.
International Market Growth and Customer Acquisitions
International markets played a significant role in driving growth, with the EMEA region recovering with a 19.4% YoY growth and the Americas region expanding by 17.1% YoY. The company also expanded its global customer base by adding 9 new enterprise customers during the quarter.
Product Launches and Recognitions
In September 2026, Newgen released NewgenONE AI Studio: Agent Studio 1.0 and NewgenONE AI Studio: Agent Flow 2.0.2. The company also received recognition for “Excellence in Low-Code & AI-Led Enterprise Innovation” at the ET Business Excellence and Leadership Summit 2026.
Key Customer Wins and Deals
Newgen secured several strategic customer wins, including:
- An agreement with a US health insurance company for the supply, installation, implementation, and cloud hosting of the NewgenONE Complaints, Appeals and Grievances Solution, valued at USD 5.5 million for 3 years.
- A deal with a government body in Qatar for Newgen Platform license, implementation, maintenance, and support for the International Regulatory Reporting and Compliance Platform Solution, valued at USD 1.8 million.
- An upgradation of the Commercial Loan & Retail Loan Origination System for a leading bank in EMEA with a booking value of ₹11.4 crore.
- Provision of a Loan Management Solution to a leading life insurance company in India.
Credit Rating Reaffirmed
Short-term credit rating was reaffirmed, with CRISIL maintaining the Company’s A1 rating for its debt instruments and facilities.
Source: BSE
