Subscription Revenue
₹525 Cr
+24% YoY
Subscription revenue grew 24% YoY to ₹525 crore, with SaaS component up 36%.
NEWGENSOFTWARETECHNOLOGI
Information Technology
13 May 2026
Newgen Software Technologies Ltd — Q4 FY26
Newgen Software reported FY26 revenue of ₹1,574 crore, up 6% YoY, with subscription revenue growing 24% to ₹525 crore and SaaS up 36%.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Newgen Software reported FY26 revenue of ₹1,574 crore, up 6% YoY, with subscription revenue growing 24% to ₹525 crore and SaaS up 36%. PAT was ₹301 crore, impacted by ₹42 crore exceptional items; adjusted PAT was ₹334 crore (up 6% YoY). Annuity revenue reached 62% of total (up from 56% in FY25), improving visibility. US revenue grew 17% YoY, APAC 14%, while India and Middle East faced headwinds from delayed large deals and geopolitical uncertainty. Management highlighted a strong deal pipeline and order book growth of 13%, but refrained from giving FY27 guidance due to near-term uncertainty. Key risk: prolonged slowdown in large deal closures in India and Middle East could pressure license revenue.
Key Numbers
Annuity Revenue %
62%
+6pp YoY
Annuity revenue as a percentage of total revenue increased from 56% in FY25 to 62% in FY26.
Order Book Growth
13%
+13% YoY
Order book at end of FY26 grew 13% compared to end of FY25.
Customer Count (>₹5 Cr billing)
101
+14 YoY
Number of customers with billing over ₹5 crore increased from 87 in FY25 to 101 in FY26.
Management Guidance
No specific FY27 revenue guidance
Management declined to provide a growth number for FY27, citing uncertainty in Middle East and large deal closures. They expect to have better clarity after Q1 FY27.
Management guidance revenueMargins expected to be maintained
Management indicated net margins should remain around 21% in FY27, with potential expansion if growth accelerates.
Management guidance marginsCampus hiring of 300-400 people
Despite a 6% headcount reduction, the company plans to add 300-400 campus hires in FY27.
Management guidance growthAggressive reduction in trade receivables
Management plans to take an aggressive target to reduce trade receivables in FY27.
Management guidance otherKey Risks
Prolonged large deal slowdown in India and Middle East
Large deal closures continue to be delayed due to geopolitical uncertainty and cautious customer decision-making, impacting license revenue.
high · management_commentaryRevenue deflation from AI-driven productivity
Analyst raised concern about clients asking for price pass-through from AI efficiencies; management estimated 2-3% impact on ~40% of revenue streams.
medium · analyst_questionMiddle East geopolitical disruption
Conflict in Middle East caused serious impact on deal closures and collections in Q4; further deterioration could affect Q1 and Q2 FY27.
high · management_commentaryShift to consumption-based pricing may compress margins
Industry shift towards agentic AI and token-based pricing could pressure traditional license and subscription pricing models.
medium · data_observationNotable Quotes
We are still not very sure about how Middle East is going to behave in the first quarter and second quarter.
We had a very high license jerky revenue base... Some of that has been already rationalized.
We are looking at AI as an opportunity to accelerate growth.
Frequently Asked Questions
What was Newgen Software Technologies's revenue in Q4 FY26?
Newgen Software Technologies reported revenue of ₹453 Cr in Q4 FY26, representing a +6% change compared to the same quarter last year.
What guidance did Newgen Software Technologies management give for FY27?
No specific FY27 revenue guidance: Management declined to provide a growth number for FY27, citing uncertainty in Middle East and large deal closures. They expect to have better clarity after Q1 FY27. Margins expected to be maintained: Management indicated net margins should remain around 21% in FY27, with potential expansion if growth accelerates. Campus hiring of 300-400 people: Despite a 6% headcount reduction, the company plans to add 300-400 campus hires in FY27. Aggressive reduction in trade receivables: Management plans to take an aggressive target to reduce trade receivables in FY27.
What are the key risks for Newgen Software Technologies in FY27?
Key risks include Prolonged large deal slowdown in India and Middle East — Large deal closures continue to be delayed due to geopolitical uncertainty and cautious customer decision-making, impacting license revenue.; Revenue deflation from AI-driven productivity — Analyst raised concern about clients asking for price pass-through from AI efficiencies; management estimated 2-3% impact on ~40% of revenue streams.; Middle East geopolitical disruption — Conflict in Middle East caused serious impact on deal closures and collections in Q4; further deterioration could affect Q1 and Q2 FY27.; Shift to consumption-based pricing may compress margins — Industry shift towards agentic AI and token-based pricing could pressure traditional license and subscription pricing models..
Did Newgen Software Technologies meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Newgen Software Technologies Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary verified against official BSE/NSE filings.