Newgen witnesses healthy revenue growth at 5% YoY; Revenues reached ₹ 422 crores in Q2 FY'27

Newgen Software Technologies Ltd. today announced its financial results for the second quarter ended September 30, 2026, reinforcing its commitment to helping organizations orchestrate intelligent enterprises.

Key Highlights - Q2 FY'27 v/s Q2 FY'26

• Revenue: Rs 422 Cr (5% Q2 YoY Growth)

• Annuity Revenue: Rs 268 Cr (15% Q2 YoY Growth)

• SaaS Revenue: Rs 63 Cr (36% Q2 YoY Growth)

• Profit after Tax: Rs 87 Cr (6% Q2 YoY Growth)

Commenting on the Company's performance, Mr. T.S. Varadarajan, Co-Founder and Executive Vice Chairman, Newgen Software Technologies Ltd., said: "Q2 FY'27 was a quarter of healthy revenue growth, resilient margins and a stronger recurring-revenue mix. Revenues witnessed a growth of 5% to reach Rs 422 crores and Profit after Tax grew by 6% YoY to reach Rs 87 crores. We continue to focus on enhancing our operational efficiencies and cost controls.

With 34 years of experience in serving regulated industries, Newgen is well positioned to address evolving customer requirements through its governed AI platform, industry-specific AI solutions, and focus on delivering measurable business value to customers. For the first half of the year, we had 10 AI-based deal bookings across Banking and Financial Services and Government. We remain committed to investing in NewgenONE and advancing its AI-led orchestration capabilities, enabling enterprises to transition from fragmented automation to governed, intelligent execution."

Key Consolidated Financial Highlights (Q2 FY'27)

Revenue from operations (consolidated) were at Rs 422 crores during the quarter, as compared to Rs 401 crores in Q2 FY'26, up 5% Q2 YoY

• Annuity revenue streams (ATS/AMC, support, and cloud/SaaS and Subscription license) were at Rs 268 crores, witnessing growth of 15% Q2 YoY.

- Subscription revenues were at Rs 150 crores, witnessing a growth of 18% Q2 YoY

- Of this, SaaS component witnessed growth of 36% Q2 YoY

Profit after tax stood at Rs 87 crores, growing at 6% Q2 YoY during the quarter with PAT Margin improving to 20.6%. Employee costs as a % of revenue improved to 45% from 47% in Q2 FY'26.

Key Business Highlights (Q2 FY'27)

• International markets drove growth:

- EMEA region recovered during the quarter, with growth of 19.4% YoY

- The Americas region continued to expand, recording growth of 17.1% YoY

• New enterprise customers expanded the global customer base with addition of 9 enterprise customers during the quarter

• Released NewgenONE AI Studio: Agent Studio 1.0 and NewgenONE AI Studio: Agent Flow 2.0.2 in September 2026

• Newgen received recognition for "Excellence in Low-Code & AI-Led Enterprise Innovation" at the ET Business Excellence and Leadership Summit 2026

• Added 10 AI-deals in Bookings in H1 FY'27

• Secured several strategic customer wins across banking, insurance, and enterprise content management:

- Executed an Agreement with a health insurance company in USA for supply, installation, implementation and cloud hosting of the NewgenONE Complaints, Appeals and Grievances Solution with a value of USD 5.5mn for 3 years

- Working with a government body in Qatar for Newgen Platform license, implementation, maintenance and support for International Regulatory Reporting and Compliance Platform Solution USD 1.8mn

- Upgradation of Commercial Loan & Retail Loan Origination System for a leading bank in EMEA with booking value of Rs 11.4cr

- Providing Loan Management Solution to a leading life insurance company in India

• Short-term credit rating reaffirmed: CRISIL maintained the Company's A1 rating for its debt instruments and facilities