What Drove Newgen Software’s Broad-Based Growth In Q2 FY26?
About Newgen Software Technologies
Newgen Software Technologies is a global provider of low-code automation, digital process, and document management solutions. The company caters to banking, insurance, government, and healthcare clients across 70+ countries, enabling enterprises to digitize complex processes through AI-driven automation and analytics.
The company’s Q2 FY26 results highlight sustained growth in subscription revenue, expanding deal pipeline, and strong order book execution. With new wins across U.K., Europe, Africa, and the U.S., Newgen continues to demonstrate its ability to secure large, multi-year transformation projects despite a challenging macro environment.
Financial Highlights (Q2 FY26)
| Metric | Q2 FY26 | YoY Growth |
|---|---|---|
| Revenue | ₹401 Cr | +11% |
| Subscription Revenue | ₹126 Cr | +20% |
| PAT | ₹82 Cr | — |
| Net Margin | 20.4% | — |
| Order Book | Up 20%+ | YoY |
Revenue ₹401 Cr shows consistent momentum driven by expansion in subscription and platform-led deals. Subscription Revenue ₹126 Cr grew 20% YoY, reaffirming Newgen’s success in transitioning to a SaaS-led model. PAT ₹82 Cr with a 20.4% margin indicates operational discipline and improved mix from recurring revenue. The Order Book growth of 20%+ demonstrates strong visibility for upcoming quarters.
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Peer Comparison
| Company | Revenue Growth YoY | PAT Margin |
|---|---|---|
| Newgen Software | +11% | 20.4% |
| Intellect Design | +8% | 15.5% |
| Tata Elxsi | +6% | 24.1% |
Newgen outperformed peers in subscription-led growth, supported by AI-driven automation and higher digital adoption in BFSI and government verticals.
SWOT Analysis
Strengths
|
Weaknesses
|
Weaknesses reflect cyclical delays in enterprise spending, particularly in EMEA, though management remains confident of recovery in H2 FY26.
Opportunities
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Threats
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Despite temporary deal deferrals, Newgen’s innovation-led strategy and recurring revenue strength provide a resilient growth foundation.
Valuation & Investment View
- Short-term: Stable with deal closure normalization expected in H2 FY26.
- Medium-term: Margin improvement likely from recurring revenues.
- Long-term: Leadership in low-code and AI-driven automation positions Newgen strongly in global digital transformation market.
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Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, highlights that Newgen Software’s consistent profitability, innovation-led approach, and strong order book create a long-term compounding story. Explore more such insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Newgen Software Q2 FY26 Performance
- How Did Newgen Achieve 20% Growth In Subscription Revenue?
- What Are The Key Global Contracts Driving Newgen’s Growth?
- How Will AI-Led Products Support Margins In FY26?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
