Newgen Software Technologies Limited – Q4 FY26 Results

NSE

newgen

BSE

540900

Newgen delivered strong top-line growth with improving operating leverage, though annual profit growth remained slightly subdued due to cost and provisioning factors

key financial highlights
  • Revenue from Operations:
    • Revenue (Q4 FY26): ₹4,526.68 Cr
      • QoQ Change: +13.1%
      • YoY Change: +5.3%
    • Previous Quarter (Q3 FY26): ₹4,002.78 Cr
    • Previous Year (Q4 FY25): ₹4,298.90 Cr
  • Profit After Tax (PAT):
    • PAT (Q4 FY26): ₹1,062.98 Cr
      • QoQ Change: +69.2%
      • YoY Change: -1.9%
    • Previous Quarter (Q3 FY26): ₹628.15 Cr
    • Previous Year (Q4 FY25): ₹1,083.39 Cr
  • QoQ Performance
    • Revenue Trend: Strong Growth
    • Profit Trend: Sharp Recovery
Margin Analysis

Key Drivers:

  • Improved operating leverage (revenue growth outpacing expenses)
  • Controlled employee cost growth
  • Lower finance costs QoQ
  • Provisioning and legal expenses impacting yearly comparison

Key Signal: Margins are expanding QoQ, indicating strong execution in core operations

Segment performance

Segment (Geographical): India

  • Revenue: ₹12,437.87 lakh
  • Insights:
    • Stable core market
    • Moderate growth

Segment: EMEA

  • Revenue: ₹13,756.09 lakh
  • Insights:
    • Strong contributor
    • Key growth geography

Segment: APAC

  • Revenue: ₹8,460.44 lakh
  • Insights:
    • Emerging growth region

Segment: USA

  • Revenue: ₹10,612.43 lakh
  • Insights:
    • High-value contracts
    • Margin supportive
Segment insight

Summary:

  • Newgen operates as a global enterprise software provider, with diversified geographical revenue streams

Characteristics:

  • Recurring SaaS-like revenue model
  • Export-driven growth
  • High margin software business
Earning quality check

Drivers:

  • Core operating cash flow strong (₹23,185 Cr)
  • Minimal reliance on exceptional items
  • Some provisioning and legal claim impact

Interpretation:

  • Earnings quality is high, supported by strong operating cash flows and recurring revenue
balance sheet Analysis
  • Total Assets: ₹24,424.75 Cr
  • Total Liabilities: ₹6,651.25 Cr

Insight:

  • Strong net cash position (~₹10,353 Cr cash)
  • High reserves (~₹16,361 Cr)
  • Low leverage → strong financial stability
key risks
  • High receivables growth (working capital pressure)
  • Currency fluctuation impact
  • Dependency on global IT spending
  • Deal execution risks
management strategy signals

Focus Area:

  • Global expansion (EMEA & US)
  • SaaS platform scaling
  • Enterprise client acquisition
  • Digital transformation solutions
Financial Metrics
ParticularQ4 FY26Q.O.QY.O.Y
Total Income₹4,570.17 Crore+12.7%+3.9%
PBT₹1,377.96 Crore+72.0%-2.4%
PAT₹1,062.98 Crore+69.2%-1.9%

Newgen delivered a strong operational quarter with improving margins and global growth traction. While YoY profit remained flat due to cost factors, the underlying business momentum is intact. The company stands out as a high-quality IT growth play with strong cash flows and global exposure.

Official Exchange Filing: Newgen Software Technologies Limited

Quarterly Performance Context
COST OF OPERATIONS AS % OF REVENUE
68%
NET PROFIT AS % OF REVENUE
24%
FISCAL YEAR

2025-2026

AUDIT STATUS

REVIEWED

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