Newgen Software Q2 FY27: Revenue Hits Rs 422 Crore

Q2 results show steady revenue and profit growth

Newgen Software Technologies reported revenue of Rs 422 crore in the second quarter of FY27. Revenue grew 5.4% from the preceding quarter, according to the earnings-call material. The company also reported that first-half revenue reached Rs 779 crore, representing 8% year-on-year growth. EBITDA for the quarter rose 6.5% to Rs 109 crore, while profit after tax increased 6.3% to Rs 87 crore. The results showed continued growth in sales and earnings, although regional performance was uneven. EMEA and the US recorded growth, while India and APAC declined because some deal closures were delayed. Management said its focus for the second half is to sustain overseas momentum and improve conversion and execution in India and APAC.

Earnings call held on October 23

The Q2 FY27 earnings call was held on October 23, 2026, and was hosted by ICICI Securities. Newgen's senior management discussed the quarterly performance and the reasons for the variation across markets. Co-founder and Executive Vice Chairman Varadrajan said the company had continued its earnings growth momentum while strengthening the quality of its revenue base. He highlighted that profitability remained resilient during the quarter. CEO Tarun Nandwani said the pipeline remained strong across subscription opportunities in mature markets and licence opportunities in India, EMEA and APAC. The management commentary linked the weaker reported numbers in India mainly to the timing of closures. The company said some NBFC-related deals that did not close in Q2 were expected to be concluded in Q3.

Margins remained resilient during the quarter

Newgen reported an EBITDA margin of 25.8% in Q2 FY27. Its PAT margin stood at 20.6%. These margins accompanied the reported increases in EBITDA and profit after tax, indicating that profitability was maintained while revenue grew. EBITDA of Rs 109 crore was higher by 6.5%, and PAT of Rs 87 crore was higher by 6.3%. The available earnings-call information did not provide a detailed cost breakdown. It does, however, show that the company delivered positive earnings growth despite delayed closures in some regions. For investors, this makes the pace of revenue conversion in the second half an important operating factor to track.

EMEA and US deliver stronger regional growth

EMEA was Newgen's strongest reported regional market in the quarter, with growth of 19.4%. The US followed with growth of 17.1%. Management described EMEA as having performed well and identified EMEA and the US as areas where the company intends to sustain momentum. The company also pointed to subscription-side opportunities in mature markets. This aligns with management's stated priority of scaling SaaS and annuity revenues to improve revenue predictability. The earnings call did not provide absolute regional revenue figures. Therefore, the available data establishes the growth direction in these markets but does not quantify their individual contribution to consolidated revenue.

India and APAC face delayed deal closures

India revenue declined 12.6%, while APAC revenue fell 6.4%. Newgen attributed the India weakness to delays in closing large deals rather than a structural slowdown. Management also referred to execution variability and closure delays in India and some parts of APAC. Nandwani said the India impact was related to deal closures that led to lower year-on-year numbers. He added that NBFC deals under closure had been skipped in Q2 and were expected in Q3. The company described India, EMEA and parts of APAC as important markets for its licence business. Whether the delayed projects convert as expected will influence the regional revenue pattern in the coming quarters.

Key Q2 FY27 financial and operating data

Share price reaction followed the mixed update

The earnings-call report said Newgen Software shares fell 3.87% to Rs 457.4 from the previous close of Rs 475.8 after the results. The market reaction came despite revenue growth and resilient profitability. The reported regional split helps explain why the update was described as mixed. Growth in EMEA and the US was offset by declines in India and APAC. The call also placed attention on large deals whose closures slipped beyond the quarter. Newgen shares are listed on the National Stock Exchange of India and BSE under the stock code NEWGEN. The supplied material does not state a broader benchmark or sector comparison for the trading session.

SaaS and annuity revenue remain a stated priority

Management said it would continue scaling SaaS and annuity revenues to strengthen predictability. The supplied earnings-call summary also referred to 15% annuity growth in Q2. Subscription-side momentum in mature markets was cited as a support for the pipeline. For a software company, recurring revenue can provide greater visibility than one-time licence transactions, though the earnings-call extract does not provide an absolute annuity revenue figure. At the same time, Newgen remains exposed to the timing of licence deal closures in markets such as India and EMEA. The quarter showed how such timing can affect regional reported growth even when management describes the pipeline as strong.

Management maintains its FY27 growth target

Newgen management reaffirmed its double-digit growth target for FY27. The basis cited was SaaS momentum and expected deal closures in the second half of the year. Its stated priorities are to maintain growth in EMEA and the US, improve conversion and execution in India and APAC, and increase SaaS and annuity revenue. These priorities address both the strong regional markets and the areas where Q2 performance was weaker. The company did not provide a revised financial target in the supplied material. It also did not specify the value or timing of individual deals expected to close. As a result, subsequent quarterly disclosures will be relevant for assessing the progress of the stated second-half plan.

Why the Q2 performance matters

The quarter presents two different signals for investors. Consolidated revenue, EBITDA and PAT rose, and margins remained above 20% at the PAT level. But India and APAC declined, demonstrating the impact of delayed project closures on quarterly performance. EMEA and US growth partly offset that weakness and supported the overall revenue outcome. Management's comments indicate that the key issue is deal timing rather than an identified structural contraction in India. That view will be tested by the conversion of the deals cited as being under closure. Newgen's next updates will also show whether SaaS and annuity growth continues to support a more predictable revenue mix.

Outlook centres on second-half execution

Newgen enters the second half of FY27 with Rs 779 crore of first-half revenue and a reaffirmed double-digit annual growth target. Management expects delayed India closures to contribute in coming quarters and has said some NBFC opportunities could close in Q3. The company is also targeting continued momentum in EMEA and the US. Its reported Q2 margins provide a measure of the profitability maintained during the period. However, the reported decline in India and APAC makes execution and conversion central to the near-term outlook. The next earnings update will offer further evidence on the planned deal closures, regional growth balance and progress in scaling SaaS and annuity revenues.