Newgen Software Technologies Limited Earnings Summary — Latest Quarter
Newgen Software Maintains Strong Growth Momentum Amidst High-Level Leadership Transition
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 21.2% sequentially in Q1 FY2027.
- Revenue of ₹357 Cr is 11.2% higher year-on-year.
- Revenue has compounded at -2.2% annualised over the last 10 quarters.
- Net profit of ₹63 Cr is 26.3% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at -20.5% annualised across the period.
- Operating margin stands at 15.7% in Q1 FY2027.
- Operating margin expanded by 165 bps year-on-year.
- Over the last two years operating margin has expanded by 53 bps.
- PBT margin is 23.0%.
- Expense growth of 9.1% remained below revenue growth of 11.2%.
- Operating profit of ₹56 Cr is 24.2% higher year-on-year.
- Operating leverage has been under pressure recently.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 58/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 357 | 453 | 400 | 401 | 321 | 430 | 381 | 361 | 315 | 375 |
| Expenses | Stable | 301 | 301 | 294 | 298 | 276 | 293 | 273 | 278 | 267 | 253 |
| Operating Profit | Volatile | 56 | 152 | 106 | 102 | 45 | 137 | 108 | 83 | 48 | 123 |
| Operating Margin | Volatile | 15.7% | 33.6% | 26.5% | 25.6% | 14.0% | 31.9% | 28.4% | 23.0% | 15.2% | 32.6% |
| Other Income | Volatile | 36 | -4 | -15 | 13 | 29 | 14 | 8 | 19 | 23 | 15 |
| Interest | Stable | 1 | 1 | 2 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Depreciation | Stable | 9 | 9 | 9 | 9 | 9 | 9 | 9 | 8 | 8 | 7 |
| Profit Before Tax | Volatile | 82 | 138 | 80 | 105 | 64 | 141 | 107 | 93 | 61 | 129 |
| Tax | Volatile | 19 | 31 | 17 | 24 | 14 | 33 | 18 | 22 | 14 | 24 |
| Net Profit | Volatile | 63 | 106 | 63 | 82 | 50 | 108 | 89 | 70 | 48 | 105 |
| Net Margin | Stable | 17.6% | 23.5% | 15.7% | 20.4% | 15.5% | 25.2% | 23.4% | 19.5% | 15.1% | 28.1% |
Key Takeaways
- Newgen has successfully transitioned to an annuity-based revenue model dominated by SaaS and subscription income.
- Financial health is robust with a 5-year profit CAGR exceeding 20% and an ROCE consistently above 24%.
- The balance sheet remains very strong with over ₹700 Cr in cash and minimal debt of ₹39 Cr.
- Leadership transition risk is a primary concern following the resignation of long-term CEO Virender Jeet in June 2026.
- Operational efficiency is high, but working capital cycle has seen recent pressure with debtor days rising to 164 days.
- The company continues to demonstrate high capital efficiency with ROE consistently remaining above 20%.
- Revenue growth remains stable in the high-teens, supported by a strong presence in the BFSI vertical.
Management Guidance
Management remains focused on scaling the low-code process automation platform globally across 17+ verticals, emphasizing long-term SaaS growth and maintaining high transparency in financial reporting.
Sentiment Shift
Stable
While underlying financial fundamentals remain high-quality, the recent CEO departure introduces a layer of moderate uncertainty regarding execution during the transition.
Outlook
The outlook remains positive for the mid-to-long term due to strong FCF conversion and a scalable product suite, though short-term focus will be on the leadership succession and managing the deteriorating working capital cycle.
From the Annual Report (Key Quotes)
“A global product company specializing in low-code process automation and document management.”
“Successful transition toward annuity-based revenue, which now dominates its top-line profile.”
“The resignation of CEO Virender Jeet in June 2026 is a critical event, as he was a key figure in the company's growth journey.”
Official Quarterly Documents
This summary is AI-generated from Newgen Software Technologies Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.