Q3 2026 Newgen Software Technologies Ltd Earnings Call Transcript
Key Points
- Newgen Software Technologies Ltd (NSE:NEWGEN) achieved a revenue of INR1,122 crores during the first nine months of FY26, reflecting a 6% year-over-year growth.
- The company onboarded 34 new logos in the nine-month period, indicating strong global enterprise trust and preference for its platform.
- Subscription revenue grew significantly, reaching INR134 crores with a 29% year-over-year increase, showcasing robust subscription-led growth.
- The US geography contributed significantly with a 21% year-over-year revenue growth, validating the company's geographic expansion strategy.
- Annuity revenues grew steadily, with a 20% year-over-year increase, enhancing revenue visibility and long-term customer stickiness.
- The growth in core markets like India and EMEA was soft, with larger enterprise deals facing elongated decision cycles.
- The company faced challenges in securing large license deals in India and the Middle East, impacting overall revenue growth.
- Despite strong order bookings, revenue conversion has been slower, particularly for subscription-led sales in regions like the US, UK, and Australia.
- The macroeconomic environment and AI-led uncertainty have led to deferred decision-making in large deals, affecting immediate revenue realization.
- The nine-month revenue growth was only 6%, indicating a slowdown compared to the strong performance in the previous two to three years.
Ladies and gentlemen, good day, and welcome to Newgen Software Technologies Limited Q3 FY26 earnings conference call, hosted by ICICI Securities Limited. (Operator Instructions) Please note that this conference is being recorded.
I would now like to hand the conference over to Ms. Seema Nayak from ICICI Securities Limited. Thank you, and over to you, ma'am.
Thank you, Rudra. Good evening, and welcome to the Q3 FY26 earnings call of Newgen Software Technologies. It's my pleasure to introduce the senior management team of Newgen. We have with us today Mr. T. S. Varadarajan, Co-Founder and Whole-Time Director; Mr. Virender Jeet, Chief Executive Officer; Mr. Arun Gupta, Chief Financial Officer; Mr. Tarun Nandwani, Chief Operating Officer; and Ms. Deepti Mehra Chugh, Head of Investor Relations.
I now hand over the call to Ms. Deepti for further proceedings. Thank you, and over to you, Deepti.
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