Newgen Software Technologies Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Newgen Software Technologies Ltd filed with BSE on 21 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Newgen reported Q1 FY'27 revenue from operations of INR357 crores, up 11% year-on-year, with annuity revenue growing 14% and SaaS and license subscription revenue growing 40%. EBITDA margin adjusted for other income was around 15.7% and profit after tax grew 26% year-on-year to INR63 crores. Management announced a leadership transition with Tarun Nandwani appointed as CEO effective August 1, 2026, replacing Virender Jeet, and Pramod appointed to a newly created Chief Growth Officer role.
Numbers mentioned
Revenue from operations: INR357 crores (Q1 FY'27)
p. 4
“our revenue from operations stood at INR357 crores, representing year-on-year growth of 11%”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
Total annuity revenue: approximately INR254 crores (Q1 FY'27)
p. 4
“Total annuity revenue stood at approximately INR254 crores, witnessing a growth of 14% Y-o-Y”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
SaaS and license subscription revenue: approximately INR60 crores (Q1 FY'27)
p. 4
“SaaS and license subscription revenue continued to grow strongly, reaching approximately INR60 crores for the quarter and growing at 40% Y-o-Y”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
EMEA revenue: approximately INR114 crores (Q1 FY'27)
p. 4
“EMEA remained the largest contributor during the quarter at approximately INR114 crores”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
India revenue: approximately INR96 crores (Q1 FY'27)
p. 4
“followed by India at approximately INR96 crores”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
USA revenue: approximately INR92 crores (Q1 FY'27)
p. 4
“the U.S.A at approximately INR92 crores”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
APAC revenue: approximately INR56 crores (Q1 FY'27)
p. 4
“and APAC at approximately INR56 crores”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
US geography growth: 27% Y-o-Y (Q1 FY'27)
p. 4
“U.S. geography witnessed a strong growth of 27% Y fo-Y, followed by APAC geography at 12%, EMEA geography at 10%”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
New logos added: 10 (Q1 FY'27)
p. 4
“We added 10 new logos during the quarter”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
Banking and financial services revenue: approximately INR225 crores (Q1 FY'27)
p. 4
“Banking and financial services remained our largest vertical, contributing approximately INR225 crores during the quarter and growing at 5%”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
Insurance and healthcare revenue: approximately INR79 crores (Q1 FY'27)
p. 4
“Insurance and health care also continue to be an important growth area, contributing approximately INR79 crores and growing at 58%”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
EBITDA adjusted for other income: INR56 crores (Q1 FY'27)
p. 5
“EBITDA adjusted for other income stood at INR56 crores, translating into an EBITDA margin of around 15.7%”
T. S. Varadarajan, page 5 of the filed PDF · View the filing
Profit after tax: INR63 crores (Q1 FY'27)
p. 5
“Profit after tax was INR63 crores, reflecting year-on-year growth of about 26% with a net margin of around 17.6%”
T. S. Varadarajan, page 5 of the filed PDF · View the filing
R&D spend as % of revenue: nearly 9% (Q1 FY'27)
p. 5
“we have invested nearly 9% of our revenues on R&D initiatives and around 26% of revenues on various sales and marketing activities”
T. S. Varadarajan, page 5 of the filed PDF · View the filing
Headcount: approximately 4,200 (FY'26 and current)
p. 8
“So we were approximately 4,200 at the end of...”
Tarun Nandwani, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
EBITDA margin — 23% to 25% · FY'27
stated firmly by Management
p. 5
“I think 15% for the full year, the EBITDA would expand. So Q1 is the lowest in terms of margin -- so we usually have 23% to 25% EBITDA margin for the entire year.”
Management, page 5 of the filed PDF · View the filing
Implementation revenue recovery — Q2 and Q3
stated conditionally by Tarun Nandwani
p. 11
“we hope we are optimistic to recover the Q1, 23%, which is amounted to some INR12 crores of revenue in quarter 2 and quarter 3”
Tarun Nandwani, page 11 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed margin expansion to AI-driven engineering optimization and operational efficiencies, and said AI capabilities are being sold as part of vertical products.
Answered by Tarun Nandwani
Asked by Shubhi Gupta: What is driving the EBITDA margin expansion and is 15-16% sustainable, and how is AI being monetized?
p. 5
“the margin expansion is a function of optimization of the AI practices in our engineering that we have incorporated”
Tarun Nandwani, page 5 of the filed PDF · View the filing
Management said delays due to environmental factors, particularly in India, caused the decline, with recovery expected in Q2.
Answered by Tarun Nandwani
Asked by Aditi Patil: What led to the decline in implementation revenue?
p. 6
“we saw some delays due to the environmental factors of our customers because of which specifically India and some part of some other parts -- but -- and that led to the decline in the quarter 1 implementation revenue”
Tarun Nandwani, page 6 of the filed PDF · View the filing
Management said demand pipeline is healthy in both regions, driven by NBFC cases in India and digital transformation/AI-led tools in EMEA.
Answered by Tarun Nandwani
Asked by Aditi Patil: What is the outlook on India and EMEA geography?
p. 6
“the demand pipeline is healthy in both India and EMEA. India is seeing good demand in our pipeline due to large cases coming in the area of NBFCs, which is LOS and LMS and trade.”
Tarun Nandwani, page 6 of the filed PDF · View the filing
Management acknowledged DSO as a challenge and said EMEA payments were delayed due to macro conditions but expects DSO to decline.
Answered by Tarun Nandwani
Asked by Aditi Patil: Was the higher DSO in Q1 due to EMEA billing delays?
p. 7
“the delay in DSO in EMEA, as you know, because of the macro environment, certain payments were delayed because of those issues”
Tarun Nandwani, page 7 of the filed PDF · View the filing
Management confirmed headcount has remained flat at around 4,200.
Answered by Tarun Nandwani
Asked by Rahul Jain: What is the current headcount versus FY'26?
p. 8
“So headcount, we have not grown.”
Tarun Nandwani, page 8 of the filed PDF · View the filing
Management said subscription revenue is still a smaller portion of overall revenue and they may consider disclosing more granular data in future.
Answered by Management
Asked by Rahul Jain: Would the company consider disclosing RPO data given rising SaaS mix?
p. 9
“still it is a 12%, 13% revenue when we are talking about overall subscription revenue still. So it's still a smaller bucket compared to all other buckets.”
Management, page 9 of the filed PDF · View the filing
Management said deal count varies quarter to quarter but deal size has grown substantially, and Middle East mining deals from existing accounts have grown.
Answered by Tarun Nandwani
Asked by Sanjay: Why is the number of deals won lower than average, and how is the Middle East performing?
p. 12
“the total booking of the 10 deals with respect to what we booked in the last quarter has seen substantial increase”
Tarun Nandwani, page 12 of the filed PDF · View the filing
Management said acquisitions have been under deliberation for a couple of years without the right fit yet, and buyback inputs have been given to the Board.
Answered by Management
Asked by Sanjay: Is there any plan for acquisitions or buybacks given healthy cash reserves?
p. 12
“as far as acquisition is concerned, that is a process which we are currently deliberating for last couple of years, but I think it is something where it is taking time”
Management, page 12 of the filed PDF · View the filing
Management said the pricing model has evolved for AI-led vertical offerings but remains a work in progress as adoption grows.
Answered by Tarun Nandwani
Asked by Shaurya Yadav: Has the AI-led product pricing model been finalized?
p. 14
“We have evolved the pricing model for our AI-led vertical offerings in the product. And it is -- see, it will remain work in progress.”
Tarun Nandwani, page 14 of the filed PDF · View the filing
Risks flagged
Delayed project starts affecting implementation revenue, especially in EMEA
p. 4
“Implementation revenues had been weaker in the quarter due to the slowest project starts across markets, especially EMEA.”
T. S. Varadarajan, page 4 of the filed PDF · View the filing
DSO increase due to delayed payments in EMEA amid macro environment
p. 7
“DSO is a challenge we recognize, but there is a decline from Q4 to Q1, where we have worked upon our collections”
Tarun Nandwani, page 7 of the filed PDF · View the filing
India market top-line stagnation combined with rising base costs squeezing margin
p. 10
“the India market hasn't grown. The top line hasn't grown. And secondly, the cost -- the base costs have increased by around 4%, 5%.”
Deepti Chugh, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.