Risk Intelligence
Prolonged large deal slowdown in India and Middle East
View Risks →Newgen Software reported FY26 revenue of ₹1,574 crore, up 6% YoY, with subscription revenue growing 24% to ₹525 crore and SaaS up 36%.
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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.
Prolonged large deal slowdown in India and Middle East
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Read Transcript →Subscription revenue grew 24% YoY to ₹525 crore, with SaaS component up 36%.
Annuity revenue as a percentage of total revenue increased from 56% in FY25 to 62% in FY26.
Order book at end of FY26 grew 13% compared to end of FY25.
Number of customers with billing over ₹5 crore increased from 87 in FY25 to 101 in FY26.
Management declined to provide a growth number for FY27, citing uncertainty in Middle East and large deal closures.
Large deal closures continue to be delayed due to geopolitical uncertainty and cautious customer decision-making, impacting license revenue.
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