Newgen Software Technologies announced strong Q2 FY’26 results, marked by an 11% year-over-year revenue growth, reaching INR 401 crores. Subscription revenues saw a robust increase of 20% YoY, hitting INR 126 crores. The company added 15 new customer logos during the quarter, with significant growth in the U.S. and APAC regions. Profit after tax stood at INR 82 crores, resulting in net margins of 20.4%.
Financial Performance Highlights
Newgen Software Technologies reported a revenue of INR 401 crores in Q2 FY’26, reflecting an 11% year-over-year growth. This growth was primarily driven by strong demand across various regions and increased adoption of digital solutions. Subscription revenues grew by 20% YoY, reaching INR 126 crores.
Key Business Wins
The company secured several significant deals during the quarter, including:
- A project worth approximately GBP3 million from a major life and pension consolidator in the U.K.
- A 5-year contract worth EUR4.2 million with a major retail group in Europe.
- A 5-year contract valued at $5.6 million from a Ghana-based conglomerate.
- A 2-year deal worth USD1.6 million with a bank in the Americas.
- A 3-year agreement valued at approximately USD2.6 million with a leading U.S. healthcare company.
- A 5-year INR21.24 crores deal by a general insurance company in India.
- A multiyear INR8.9 crores deal for licenses of BPM platform and its implementation for the PAN 2.0 initiative in India.
Regional Performance
The U.S. and APAC regions experienced strong growth of 22% each during the quarter. India region witnessed a growth of 7%, and EMEA grew by 3%.
Investments and Recognition
Newgen continues to invest in R&D and sales and marketing initiatives, allocating 9% of its revenues to R&D and approximately 21% to sales and marketing activities. The company was also recognized as a strong performer in the Forrester Wave Digital Process Automation Software in Q3 2025 and was selected in the Forbes Asia Best under a billion issue for the second time.
Profitability and Cash Flow
Profit after tax for the quarter was INR82 crores, with net margins at 20.4%. Net cash generated from operating margin activities was INR90 crores during the 6-month period. Net trade receivables were at INR521 crores as of September 30, 2025, resulting in a net DSO of 124 days.
Source: BSE
