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Newgen Software Technologies Ltd

| Quarterly Financial Results Q3 FY 2025–26

NEUTRAL SENTIMENT

Report Source

20th Jan 26

Summary : Newgen Software Technologies Limited reported Q3 and 9M FY26 financial results, including a one-time exceptional expense due to new Labour Codes, with a clean limited review report from auditors.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Employee Benefits Expenses (Q3 FY26): INR 18,935.81 lakhs
  2. Consolidated Employee Benefits Expenses (9M FY26): INR 55,947.09 lakhs
  3. Consolidated Other Expenses (Q3 FY26): INR 10,467.44 lakhs
  4. Consolidated Other Expenses (9M FY26): INR 30,861.24 lakhs
  5. Consolidated Exceptional Item (Labour Codes) (Q3 FY26): INR 3,509.78 lakhs
  6. Consolidated Exceptional Item (Labour Codes) (9M FY26): INR 3,509.78 lakhs
  7. Standalone Employee Benefits Expenses (Q3 FY26): INR 15,276.54 lakhs
  8. Standalone Employee Benefits Expenses (9M FY26): INR 45,062.65 lakhs
  9. Standalone Other Expenses (Q3 FY26): INR 10,333.03 lakhs
  10. Standalone Other Expenses (9M FY26): INR 31,851.52 lakhs
  11. Standalone Exceptional Item (Labour Codes) (Q3 FY26): INR 3,509.78 lakhs
  12. Standalone Exceptional Item (Labour Codes) (9M FY26): INR 3,509.78 lakhs
  13. Consolidated Revenue from Operations (Q3 FY26): INR 40,027.75 lakhs
  14. Consolidated Revenue from Operations (9M FY26): INR 1,12,172.73 lakhs
  15. Standalone Revenue from Operations (Q3 FY26): INR 35,522.29 lakhs
  16. Standalone Revenue from Operations (9M FY26): INR 1,00,197.52 lakhs
  17. Consolidated Other Income (Q3 FY26): INR 2,004.95 lakhs
  18. Consolidated Other Income (9M FY26): INR 6,265.96 lakhs
  19. Consolidated Total Assets (Q3 FY26): INR 2,15,743.49 lakhs
  20. Consolidated Total Liabilities (Q3 FY26): INR 49,714.72 lakhs
  21. Standalone Total Assets (Q3 FY26): INR 1,89,169.27 lakhs
  22. Standalone Total Liabilities (Q3 FY26): INR 36,138.69 lakhs
  23. Both standalone and consolidated results are presented. Consolidated includes 8 subsidiaries.

Corporate Overview

  1. India
  2. EMEA
  3. APAC
  4. Impact of new Labour Codes leading to exceptional expenses
  5. Software Technologies
  6. Factual and compliant tone in reporting
  7. Geographical segments: India, EMEA, APAC, USA

Risk Factors

  1. Significant one-time expense from new Labour Codes.
  2. Regulatory changes require continuous monitoring.
  3. Limited review, not a full audit opinion.
  4. Potential future impacts from pending clarifications.

Key Drivers

  1. Board approved strong Q3, 9M FY26 results.
  2. Company maintains compliance with SEBI regulations.
  3. Dividend of INR 5.00 per share paid.
  4. Diversified revenue across key global geographies.

Auditor’s Report

  1. Limited review report, not an audit opinion. No material misstatement found.
  2. Compliance with Indian Accounting Standard 34, Companies Act 2013, and SEBI Listing Regulations

Board Commentary

  1. Board recommended INR 5.00 per equity share dividend for FY25, approved by shareholders and paid
  2. Impact of Labour Codes (INR 3,509.78 lakhs) as an exceptional item
  3. Impact of new Labour Codes (Code on Wages, Industrial Relations Code, Social Security Code, Occupational Safety, Health and Working Conditions Code) leading to exceptional expenses

Corporate Governance

  1. Audit Committee reviewed the financial results

Management Discussion & Analysis

Operational Focus Areas

  1. Monitoring finalization of Labour Code rules and clarifications

Risk Control Measures

  1. Company is monitoring finalization of rules and clarifications

Critical Risks

  1. Regulatory changes (Labour Codes) leading to significant one-time expenses
Newgen Software Technologies Ltd (NEWGEN) Quarterly Report Analysis & Insights | Dhanarthi