Newgen Software Shares jump on positive results

The Newgen Software Technologies share price jumped 11% after announcing strong full-year and Q4 results. The share price settled slightly down by the end of the day, moving from 480 INR to 508 INR, a rise of 7.04% over the last seven days.

Revenues in Q4, ending March 31^st 2026, rose 5.3% in Q4 to Rs 453Cr. That growth was just shy of the full-year 6% revenue growth, with consolidated operating revenues of Rs 1,574 cr.

Mr Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd., said, “We recorded a revenue growth of 6% YoY in FY’26, despite the uncertain market environment. The quality of our revenue mix continued to improve materially driven by expansion in subscription-based revenues.

“Subscription revenues witnessed 24% YoY growth during the year on account of growth in SaaS and ATS revenue streams. The number of customers with billing over Rs 5 crores grew from 87 in FY’25 to 101 in FY’26, reflecting strong wallet-share expansion.”

The Q4 results included:

• Total Revenues Rs 4,570 Cr, up 2.9%
• Profit after tax Rs 1,127 up 4%
• Annuity revenue streams (ATS/AMC, support, and cloud/SaaS and Subscription license) were at Rs 262 crores
• Subscription revenues were at Rs 143 crores, up 25% YoY
• The SaaS component grew 44% YoY

For the full year:

• Total Revenues 16,414 up 5.9%
• Profit after tax Rs 1,127 up 6%
• Annuity revenue streams (ATS/AMC, support, and cloud/SaaS and Subscription license) were at Rs 968 crores
• Subscription revenues were at Rs 525 crores, up 24% YoY
• The SaaS component saw growth of 36% YoY

The profit margin for the full year remained static at 21.2%

A year of continued success

Newgen now has a direct presence in eight countries, with 4,300 employees. It targets 17 verticals with Banking and Financial Services contributing 68% of revenue. Other key sectors include Insurance and Healthcare (16%) and Government (8%). Revenues are also geographically split with EMEA 31%, India 29%, USA 23% and APAC 17%. Growth in the US (17% YoY) and APAC (14% YoY) have been especially strong.

The company has also seen the number of customers spending more than RS 50Mn growth, with 101 customers meeting that threshold in FY 2026, up from 87. The firm won 47 net new logos during the year and saw total bookings rise by 13%.

Key wins included:

• Providing Retail Loan Origination Solution to a leading Bank in Malaysia. The aggregate order value is RM 6,750,000
• Entered into an agreement with a leading Insurance company in Illinois, US, for Policy Binding
• Solution, with an order value of US 1.6Mn
• Executed an agreement with a leading bank in Kuwait for Corporate Finance Origination Solution (Islamic), Retail Finance Origination Solution (Islamic), and Customer Communication Management System. The aggregate value of the order is USD 2.22 Mn
• Working with an insurance company in the Caribbean region for the supply, installation & implementation of the NewgenONE Digital Transformation Platform. The aggregate value of the Agreement is US$1.5 Mn
• Working with a large reputable Government Organisation based in the UAE for building an Automatic Exchange of Information – Pillar 2 tax compliance system. The aggregate value of the agreement is AED 5.3Mn

Product

While the company issued no major press releases regarding product updates during the year, it did file for 12 new patents and was granted two. Those included a system and method for data compression.

It does not mean that the product has not moved forward during the year; Enterprise-wide unified Low Code digital transformation platform, NewgenONE, is the source of much of its revenue growth. Embedded with Agentic AI, including Marvin, Harper and Lumin, it continues to win customers for its Enterprise Content management, Business Process management and Customer communication management capabilities.

Mr Virender Jeet, CEO, Newgen Software, commented, “We are consistently working on adding AI use cases in Banking and Insurance accelerators and focusing on selling journey-led deals.

“We are happy to share that we have been recognized as a Great Place to Work second time in a row. It reflects the strength, consistency, and shared values of the culture we have built together.”

Enterprise Times: What does this mean?

A strong set of results with the market reacting positively. Newgen shares are also rated as “Buy” from 6 analysts with a target price of an estimated Rs. 820 (Source MSN). That will be good news for the board, though how they will achieve that is a little unclear, and there was no publish revenue outlook in the results presentation.

Varad Rajan commented on the analyst call, “Our deal pipeline continues to remain strong. Our order bookings have scaled, and deferred revenue streams have strengthened. All these are providing improved visibility into FY 2027. While we remain mindful of the broader market conditions, we are confident in our ability to continue delivering value to our customers and shareholders.”

It will be interesting to see whether Newgen maintains its momentum and whether it announces further product updates that could help boost its traction within the markets it operates. The target share price seems high, and the leadership seem hesitant with global market conditions to commit to specific growth, though optimism for the US and APAC remains strong.

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