Newgen Software Technologies Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Newgen Software Technologies Ltd filed with BSE on 06 May 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 FY'26 revenue growth of 6% year-on-year to Rs 1,574 crore, with subscription revenues growing 24% and annuity revenue reaching 62% of total revenue, up from 56% in FY'25. Management said profit after tax was affected by exceptional items related to new Labour Codes and a legal provision, with adjusted PAT at Rs 334 crore. The company also described weaker large-deal closures in India and EMEA, attributed partly to geopolitical uncertainty in West Asia, alongside continued growth in the U.S. and APAC geographies.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue: INR1,574 crores (FY '26)
p. 3
“In FY '26, we recorded a revenue growth of 6% Yo-Y to reach INR1,574 crores despite the uncertain market conditions.”
T.S. Varadarajan, page 3 of the filed PDF · View the filing
Subscription revenue growth: 24% Y-o-Y (FY '26)
p. 3
“Our subscription revenues grew by 24% Y-o-Y to reach INR525 crores.”
T.S. Varadarajan, page 3 of the filed PDF · View the filing
SaaS growth: 36% Y-o-Y (FY '26)
p. 3
“Specifically, the SaaS component grew by 36% Y-o-Y.”
T.S. Varadarajan, page 3 of the filed PDF · View the filing
Annuity revenue: INR968 crores, 62% of total revenues (FY '26)
p. 3
“Our annuity revenues were at INR968 crores, comprising 62% of total revenues, which is up from 56% in the FY '25.”
T.S. Varadarajan, page 3 of the filed PDF · View the filing
U.S. revenue growth: 17% Y-o-Y (FY '26)
p. 4
“U.S. geography continued to grow record healthy traction and witnessed revenue growth of 17% Yo-Y for the full year.”
T.S. Varadarajan, page 4 of the filed PDF · View the filing
Q4 U.S. revenue: INR106 crores, 20% Y-o-Y growth (Q4 FY '26)
p. 4
“In Q4 specifically, U.S. revenues were at INR106 crores, growing at 20% Y-o-Y.”
T.S. Varadarajan, page 4 of the filed PDF · View the filing
APAC revenue growth: 14% Y-o-Y (FY '26)
p. 4
“APAC geography witnessed revenue growth of 14% Y-o-Y for the full year.”
T.S. Varadarajan, page 4 of the filed PDF · View the filing
New customer logos added: 47 (FY '26)
p. 4
“Over the course of the year, we added a total 47 new customer logos.”
T.S. Varadarajan, page 4 of the filed PDF · View the filing
Customers billing over INR5 crores: 101, up from 87 (FY '26 vs FY '25)
p. 4
“The number of customers with billing over INR5 crores grew from 87 in FY '25 to 101 in FY '26, reflecting strong wallet share expansion.”
T.S. Varadarajan, page 4 of the filed PDF · View the filing
Profit after tax: INR301 crores (FY '26)
p. 5
“Profit after tax for FY '26 was INR301 crores, impacted by exceptional items, excluding onetime statutory impact of new Labour Codes and provision for legal claim to the extent of INR42 crores.”
T.S. Varadarajan, page 5 of the filed PDF · View the filing
Adjusted profit after tax: INR334 crores, 6% Y-o-Y growth (FY '26)
p. 5
“These -- if these exceptional items are excluded, the adjusted profit after tax would have been INR334 crores, reflecting a good growth of 6% Y-o-Y instead of negative growth as reflected in the books of account, which is incorporating exceptional items.”
T.S. Varadarajan, page 5 of the filed PDF · View the filing
Adjusted net margin: 21.3% (FY '26)
p. 5
“The adjusted net margins are at 21.3%.”
T.S. Varadarajan, page 5 of the filed PDF · View the filing
R&D investment: 8.5% of revenues (FY '26)
p. 5
“During the year, we have invested nearly 8.5% of our revenues on R&D initiatives and around 22% of revenues on the various sales and marketing activities.”
T.S. Varadarajan, page 5 of the filed PDF · View the filing
Net cash from operating activities: INR302 crores (FY '26)
p. 5
“We have declared a dividend of INR6 per share.”
T.S. Varadarajan, page 5 of the filed PDF · View the filing
Dividend per share: INR6 (FY '26)
p. 5
“We have declared a dividend of INR6 per share.”
T.S. Varadarajan, page 5 of the filed PDF · View the filing
Q4 Revenue: INR457 crores (Q4 FY '26)
p. 5
“Q4 revenue was at INR457 crores versus INR430 crores in Q4 FY '25, which is up from 5.3% Y-o-Y.”
T.S. Varadarajan, page 5 of the filed PDF · View the filing
Q4 SaaS growth: 44% Y-o-Y (Q4 FY '26)
p. 5
“The Q4 SaaS component grew at 44% Y-o-Y, underscoring the momentum in our cloud and subscription-based revenues.”
T.S. Varadarajan, page 5 of the filed PDF · View the filing
Order book growth: 13% (FY '26)
p. 10
“See, our overall order book at the end of the year compared to last year has grown by around 13%.”
Virender Jeet, page 10 of the filed PDF · View the filing
Headcount reduction: 6% (FY '26 Y-o-Y)
p. 16
“Yes. So we have roughly around 6% reduction in headcount Y-on-Y.”
Virender Jeet, page 16 of the filed PDF · View the filing
Employee AI access: 80% of employees
p. 16
“Today, almost around 80% of all our people have access to all kind of technologies and AI agents so that they can work on that.”
Virender Jeet, page 16 of the filed PDF · View the filing
Annuity revenue breakdown - SaaS: 12% (FY '26)
p. 11
“And out of the overall 62%, about 12% is SaaS, 21% is ADS AMC, and about 28% is support.”
Deepti Mehra Chugh, page 11 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.
Revenue growth for FY '27 — FY '27
stated as an aspiration by Virender Jeet
p. 8
“In this kind of an environment, projecting a number for next year may not be advisable. I think we'll just wait for 1 or 2 quarters till we are getting a much more, better insight of what's happening in the market.”
Virender Jeet, page 8 of the filed PDF · View the filing
Trade receivables — reduce aggressively · this year
stated firmly by Virender Jeet
p. 11
“Again, I think this year, we'll take an aggressive target to reduce the trade receivables aggressively and try to come back to the normal.”
Virender Jeet, page 11 of the filed PDF · View the filing
Annuity revenue as % of total — 75%-80% of annual revenues
stated as an aspiration by Virender Jeet
p. 14
“It can reach all the way up to 75%, 80% of the annual revenues.”
Virender Jeet, page 14 of the filed PDF · View the filing
Campus hiring — 300 to 400 campus people · this year
stated firmly by Virender Jeet
p. 16
“Even this year, we are going ahead with adding 300 to 400 campus people.”
Virender Jeet, page 16 of the filed PDF · View the filing
AI-driven revenue deflation impact — 2%-3% impact on two revenue streams · this year
stated conditionally by Virender Jeet
p. 20
“But as of now, we are not estimating more than 2%, 3% impact on these two revenue streams for this year in that area.”
Virender Jeet, page 20 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 said Middle East saw disruption in decision cycles but not a fundamental slowdown, while NBFC demand in India remains a growth driver; employee cost reduction was attributed to operational efficiency, less service-heavy revenue growth, and early AI-based engineering benefits.
Answered by Virender Jeet
Asked by Seema Nayak: Are there broader BFSI demand weaknesses beyond Middle East, and what is driving the multiyear low employee cost?
p. 6
“We had an optimization of roughly around 7% in our manpower numbers for the year.”
Virender Jeet, page 6 of the filed PDF · View the filing
Management said large deal momentum has slowed broadly across markets due to economic and AI-related decision uncertainty, and the company has pivoted toward more midsized deals.
Answered by Virender Jeet
Asked by Meet Virani: How much of Q4 revenue growth came from conversion of earlier delayed large deals, and has deal closure normalized?
p. 7
“So there is overall slowdown in terms of larger deal momentum across all businesses that we are seeing broadly.”
Virender Jeet, page 7 of the filed PDF · View the filing
Management declined to give a specific growth number, citing uncertainty in Middle East and large deal timing, and said they would have better visibility after another quarter.
Answered by Virender Jeet
Asked by Rahul Jain: What growth band should be expected for FY'27 or medium term given macro uncertainty?
p. 9
“So I think just give us one more quarter. I think by the end of the next quarter, we should be able to have a much more clear picture.”
Virender Jeet, page 9 of the filed PDF · View the filing
Management confirmed serious impact last quarter with signs of improvement, and reported order book growth of around 13% year-on-year.
Answered by Virender Jeet
Asked by Aditi: Are Middle East deal closures being delayed due to conflict, and how has the order book grown?
p. 9
“Yes, absolutely, I think we had a serious impact last quarter.”
Virender Jeet, page 9 of the filed PDF · View the filing
Management attributed India's degrowth to a sharp fall in large license revenue and said they expect the worst to be over with a return to growth this year.
Answered by Virender Jeet
Asked by Swechha Jain: How does management see India revenue degrowth stabilizing?
p. 11
“So we do have that India should -- I think the worst in India is over in terms of numbers, and we should be able to bring in a growth year this year.”
Virender Jeet, page 11 of the filed PDF · View the filing
Management said pricing evolution is underway but is not the primary headwind, with actual headwinds coming from decision-making delays and economic turmoil.
Answered by Virender Jeet
Asked by Rajakumar Vaidyanathan: Is the shift to agentic/consumption-based pricing a headwind for Newgen?
p. 18
“I think we are -- pricing is the least amount of headwind. I think the headwinds are around more about decision-making, what's happening in markets about economic turmoil.”
Virender Jeet, page 18 of the filed PDF · View the filing
Management estimated a 2-3% impact on the roughly 40% of revenue from implementation and support streams, while framing the broader effect of AI as a net positive.
Answered by Virender Jeet
Asked by Sumukh: Is there revenue deflation from AI productivity pass-through to clients, and what portion of revenue is discretionary and at risk?
p. 20
“These two streams contribute roughly around 40% of our revenue.”
Virender Jeet, page 20 of the filed PDF · View the filing
Risks flagged
Geopolitical uncertainty in West Asia delaying large deal closures and collections
p. 4
“In the EMEA geography, revenue growth of performance has faced headwinds by geopolitical uncertainty in the West Asia, especially towards the end of the financial year.”
T.S. Varadarajan, page 4 of the filed PDF · View the filing
Slower large deal decision-making in India and Middle East
p. 7
“There are multiple reasons about the decision-making process. Some are to do with the challenges there are in the economy, but some are in terms of the uncertainty around the AI or taking more time to evaluate whether what people are buying as the right value for the enterprise.”
Virender Jeet, page 7 of the filed PDF · View the filing
Increased trade receivables due to collection delays in EMEA and operational challenges in APAC
p. 11
“So we have this problem in 2 dimensions. One is typically our ability to collect in EMEA over the last 1-month has drastically affected the EMEA trade receivables that.”
Virender Jeet, page 11 of the filed PDF · View the filing
Potential revenue pressure from AI-driven optimization of run-the-business IT spend
p. 20
“So there is going to be some pressure across the globe in terms of optimizing some services which are running as is.”
Virender Jeet, page 20 of the filed PDF · View the filing
Uncertainty over how Middle East conflict will evolve in coming quarters
p. 7
“We are still not very sure about how Middle East is going to behave in the first quarter and second quarter.”
Virender Jeet, page 7 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.