Newgen Software Reports Strong Q2 FY'26 Performance with 11% Revenue Growth
Newgen Software Technologies Limited reported robust Q2 FY2026 results with revenue reaching INR 401.00 crores, up 11% year-over-year. Subscription revenues grew by 20% to INR 126.00 crores. Profit after tax was INR 82.00 crores with 20.4% net margins. The U.S. and APAC regions showed 22% growth each, while India and EMEA grew by 7% and 3% respectively. The company secured significant deals, including a GBP 3.00 million project in the UK and a EUR 4.20 million contract in Europe. Newgen added 15 new customer logos, invested 9% of revenues in R&D, and allocated 21% to sales and marketing. The company faces challenges in large deal momentum in India and EMEA markets but maintains a positive outlook for the second half of the year.
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Newgen Software Technologies Limited , a global provider of low code digital transformation platform, has reported a robust performance for the second quarter of fiscal year 2026, with significant growth across key financial metrics and geographical regions.
Financial Highlights
- Revenue reached INR 401.00 crores, marking an 11% year-over-year growth
- Subscription revenues grew by 20% year-over-year to INR 126.00 crores
- Profit after tax stood at INR 82.00 crores with net margins at 20.4%
Geographical Performance
| Region | Growth Rate |
|---|---|
| U.S. | 22% |
| APAC | 22% |
| India | 7% |
| EMEA | 3% |
Key Wins and Business Momentum
Newgen secured several significant deals during the quarter, including:
- A GBP 3.00 million project from a major life and pension consolidator in the UK
- A 5-year contract worth EUR 4.20 million with a major European retail group
- A 5-year contract valued at $5.60 million from a Ghana-based conglomerate
The company added 15 new customer logos during the quarter, indicating strong business momentum and market penetration.
Operational Highlights
- Invested 9% of revenues in R&D initiatives
- Allocated 21% of revenues to sales and marketing activities
- Net cash generated from operating activities was INR 90.00 crores during the 6-month period
- Net trade receivables stood at INR 521.00 crores as of September 30, 2025, resulting in net DSO of 124 days
Management Commentary
The management noted that while large deal momentum in India and EMEA markets still faces challenges compared to mature markets, overall business momentum remains strong. The company is focusing on expanding its presence in the banking vertical and working on building customer journeys in private enterprises.
Market Recognition
Newgen has been recognized as a strong performer in the Forrester Wave Digital Process Automation Software in Q3 2025 and as a representative vendor in Gartner Market Guide for Commercial Banking and Cash Management.
Outlook
With a healthy pipeline and improving project closures, especially in new and mature markets, Newgen is hopeful of continuing the momentum in the second half of the year. The company's focus on AI-driven product and solution development is expected to boost productivity and decision-making capabilities for its clients.
As Newgen continues to expand its global footprint and deepen client relationships across key verticals, investors can look forward to potential growth opportunities in the coming quarters. However, it's important to note that challenges in large deal closures in certain markets may impact short-term performance.
Note: All financial figures are in Indian Rupees (INR) unless otherwise stated.
Historical Stock Returns for Newgen Software Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.74% | -1.45% | +8.22% | -11.41% | -27.27% | +273.49% |
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