Newgen reported revenues of INR400 crores in Q3 FY’26, a 5% year-over-year increase. Subscription revenue grew strongly by 29% Y-o-Y, reaching INR134 crores. The company secured 7 new customer logos during the quarter and saw significant growth in the U.S. (21% Y-o-Y). A one-time impact of INR35 crores was recorded due to new Indian labor code changes.
Key Financial Highlights
In Q3 FY’26, Newgen’s annuity revenues reached INR250 crores, marking a 20% year-over-year increase. Within this, subscription revenue was a standout, growing by 29% Y-o-Y to INR134 crores. While Q3 revenue reached INR400 crores, growth was tempered compared to the previous year due to challenging comparisons against high license revenue quarters.
New Customer Acquisitions
Newgen onboarded 7 new logos in Q3 FY’26. Notable wins include:
- A public sector bank in Saudi Arabia for a loan origination system (INR38.6 crores).
- A financial institution in the U.S. for an enterprise content platform ($5.3 million over 2 years).
- A specialist insurance company in Europe for a contract management platform (GBP 1.5 million).
Regional Performance
The U.S. geography exhibited strong growth, with a 21% year-over-year revenue increase during the quarter. The APAC region also showed growth, increasing by 7%. India and EMEA showed weaker growth rates during the same period.
Strategic Developments
Newgen is focusing on next-generation AI-led products to enhance customer productivity and automation. The company is also investing in employee AI upskilling and was recognized in the Gartner Magic Quadrant for business orchestration and automation technologies.
Profitability and Costs
Despite a muted revenue growth of 5% in Q3, Newgen maintained margin strength. The adjusted profit after tax for the quarter, excluding the impact of the new Indian labor code changes, was INR90 crores with net margins at 22.5%. The company recorded a one-time impact of INR35 crores due to these labor code changes.
Investments and Balance Sheet
Newgen continues to invest in R&D and sales/marketing initiatives, allocating 9% of revenues to R&D during the 9-month period. Net cash generated from operating activities totaled INR154 crores in the same period, with net trade receivables at INR530 crores as of December 31, 2025.
Source: BSE
