Newgen Software gains after Q4 PAT jumps 69% QoQ to Rs 106 cr

Newgen Software Technologies rose 8.52% to Rs 521.55 after the company?s consolidated net profit jumped 69.2% to Rs 106.30 crore on a 13.09% rise in revenue from operations to Rs 452.67 crore in Q4 FY26 over Q3 FY26.

On a year-on-year (YoY) basis, the company?s consolidated net profit declined 1.88% while revenue from operations increased 5.3% in Q4 FY26.

Profit before exceptional items and tax stood at Rs 146.12 crore in Q4 FY26 as against Rs 141.27 in Q4 FY25. The company reported an exceptional loss of Rs 5.04 crore during the quarter, primarily on account of labour code-related impact.

Annuity revenue streams, comprising ATS/AMC, support services, and cloud/SaaS and subscription licenses, stood at Rs 262 crore. Subscription revenue amounted to Rs 143 crore, recording a 25% year-on-year growth in Q4, while the SaaS component grew 44% year-on-year during the quarter.

For Newgen Software, revenue from the India business declined to Rs 124.3 crore in Q4 FY26 from Rs 133.6 crore in the year-ago period. Revenue from the Europe, Middle East, and Africa (EMEA) segment remained flat at Rs 137.5 crore.

Revenue from the Asia Pacific region increased to Rs 84.6 crore from Rs 69.2 crore, while the US business reported revenue of Rs 106.1 crore, up from Rs 88.5 crore in the corresponding quarter last year.

Diwakar Nigam, chairman & managing director of Newgen Software Technologies, 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.?

Virender Jeet, CEO, Newgen Software, said, ?By embedding agentic AI directly into our low-code fabric, NewgenONE enables organizations to move beyond process execution toward autonomous, policy-safe decisioning. 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 for the second time in a row. It reflects the strength, consistency, and shared values of the culture we have built together.?

Meanwhile, the company?s board has recommended a final dividend of Rs 6 per share (60% on the face value of Rs 10 each) for FY26, subject to shareholder approval at the upcoming AGM, and has fixed 17 July 2026 as the record date for the dividend.

Newgen Software Technologies is a global software company and is engaged in the business of software product development, including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to document management to imaging.

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