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Earnings Call Transcript

Newgen Software Technologies Earnings Call Transcript: Key Takeaways

Newgen delivered moderate revenue growth led by international markets (EMEA/US), while India and APAC lagged. Management maintained high margins through cost discipline despite licensing revenue volatility.

Guidance and delivery
Management target Revenue 10.0% FY27
Highlights
Revenue growth5.4% YoY growth reached ₹422 Cr; SaaS up 36.4%.
MarginsEBITDA margin improved to 25.8%; PAT margin at 20.6%.
Order bookLarge US health insurance deal ($5.5M) and Qatar government contract.
Demand visibilityStrong international demand (EMEA/US); India/APAC seeing execution delays.
Management confidenceConfident, focusing on 'NewgenONE' platform and AI-led growth.

Growth

Revenue grew 5.4% YoY; Subscription/SaaS up 36% while License revenue fell 19%.

Outlook

Targeting double-digit growth for FY27; expect margin maintenance at 20-22%.

Risks

India revenue declined 12.6%; License sales remains lumpy and timing-dependent.

Last quarter's promises, checked

Delivered

  • Guided FY EBITDA margin 23–25% → 25.8% EBITDA margin (= BEAT)
  • Guided ~20% margin maintained → PAT margin 20.6% (= BEAT)

Missed

  • Guided double-digit revenue growth → 5.4% YoY (= MISS)
  • Guided India back to growth → India −12.6% (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: NEWGEN. Summary written with AI assistance from the document.

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Newgen Software Technologies Ltd: key numbers

Share price
₹458.00
Market cap
₹6,527 Cr
Revenue (annual)
₹1,574 Cr
Net profit (annual)
₹300.6 Cr
P/E (TTM)
20.5×Sector 22.9×
Promoter holding
53.45%+0.00% QoQ
FII holding
13.83%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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