Newgen Software Technologies Ltd. share price target

Strong quarter ; Weakness in license persists About the stock: Incorporated in 1992, Newgen is a low code application Q4FY26 & FY26 Performance: Newgen reported revenue of 452.7 crore, up 13% QoQ/ 5.3% YoY. Product/ License revenue (19% of mix) de-grew by 13% YoY to 86 crore and Implementation revenues (23% of mix) de-grew by 6.9% YoY to 104 crore. Subscription revenues (ATS/AMC +SaaS) reported 29.6% YoY revenue growth wherein SaaS revenue grew 52.1% YoY while ATS/AMC grew 17.7% YoY. Annuity revenues (ATS/AMC+ SaaS+ Support) grew 19.8% YoY to 262.5 crore....

Newgen reported resilient revenue growth of 5.3% YoY, despite the macro impact on its EMEA region (accounted for 30% of Q4FY26 revenue).

Newgen delivered FY26 revenue of INR 1,574cr, up 6% YoY, a modest number weighed down by weak large-deal closures in India and geopolitical disruptions in the Middle East/West Asia. The key drivers such as (1) subscription revenue, up 24% YoY to INR 525cr (2) SaaS specifically up 36% and (3) annuity revenues now comprise 62% of total revenue versus 56%YoY that is structurally improving the earnings visibility. US grew 17% and APAC 14%, which was partly offsetting India/EMEA softness. Adjusted PAT came in at INR 334cr, up 6% YoY excluding INR 42cr of one-time labor code and legal provisions; and the reported PAT...

Newgen reported subdued revenue growth of -0.1% QoQ/ 5% YoY in Q3FY26, impacted by lower large license deal wins in key markets of India and EMEA.

Newgen Software delivered a steady but mixed Q3FY26 performance in a challenging demand environment. Revenue grew modestly at 5% YoY in Q3, mainly impacted by a high base of license sales last year and slower decision-making for large deals in India and the Middle East. However, the business quality continues to improve. Annuity revenues now form over half of total revenues, with subscription revenue growing a strong 29% YoY, providing better visibility and stability. The US, UK, and Australia showed healthy traction, while India & EMEA remain temporarily weak due to...

Annuity-led mix enhances visibility and stability: Newgen's transition towards subscription & annuity-led revenue model continues to strengthen business quality & revenue predictability with over half of revenues now coming from recurring annuity streams (+19.6% YoY). Strong growth in SaaS (+36.5% YoY) and ATS/AMC (+22% YoY), across US, UK & Australia also improves visibility & stickiness. However, near-term growth remains moderated by slower traditional license-led deal closures in India & EMEA and elongated enterprise decision cycles with recovery hinging on execution & deal timing....

Newgen Software Technologies posted a strong Q2 FY26, with revenue growing 11% year-on-year to INR 401cr, and profit rising 16% to INR 82cr. The company's subscription revenue surged 20% to INR 126cr. The quarter saw 15 new clients and significant multimillion-dollar orders in the UK, Europe, Ghana, and India. Both the US and Asia-Pacific regions grew by 22%, while India and EMEA posted steady gains. Their focus on digital solutions and AI-based products is helping improve efficiency, which in turn supports stable profit margins (20.4%). Newgen is also benefiting from investments in sales, marketing, and R&D. The...

SaaS-led growth driving rebound: Newgen delivered a healthy 11% YoY revenue growth in Q2FY26, led by 33% YoY growth in SaaS revenues (12% of revenue mix) and 16% YoY rise in implementation services (23% of revenue mix). The company's pivot toward annuity-based revenues is strengthening visibility, with SaaS and subscription momentum offsetting softness in traditional license sales (18% of revenue mix) across India and EMEA which are seeing delay in large license deal closures. Newgen's focus on large deal wins in the US, Europe/UK, Singapore is paying off with 15 new logo additions...

The company delivered a subdued Q1FY26, posting revenue of INR 3,207mn, falling short of expectations due to delays in large deal closures and cautious customer spending amid global uncertainty. Despite this, it maintained healthy profitability with a 15.5% of PAT margin, driven by a 19%YoY growth in recurring revenue streams like SaaS, ATS, and AMC. While license revenues declined due to smaller deal sizes and longer decision cycles, the addition of 12 new clients and growing interest from BFSI, insurance, and enterprise sectors show positive demand momentum. Its industry-specific, AI-driven low-code platforms continue...

Newgen reported a sharp miss vs I-Sec estimate on revenue, with growth of 1.9% YoY – much lower than company’s aspiration of 20%+ YoY growth.

Newgen reported strong revenue growth of 23.2% YoY in Q2FY25 led by license sales predominantly in APAC and healthy growth across other markets.

Newgen reported in-line revenue growth of 25% YoY. EBIT margin was at 12.7%, outperforming consensus estimates of 11.3%, despite increased hiring, employee cost and investment in sales and marketing.

Coasting along a strong and stable growth trajectory