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Newgen Software Technologies Ltd

| Consolidated Financial Results of Newgen Software Technologies Limited

Report Source

⬤30th Apr 26

Summary : Newgen Software reported revenue growth but lower net profit due to exceptional items, while maintaining dividend and re-appointing auditors.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated FY26 Total Expenses: ₹ 1,21,068.65 lakhs (up from ₹ 1,14,848.72 lakhs in FY25).
  2. Exceptional items include Labour Codes impact (₹ 3,005.76 lakhs) and legal claim provision (₹ 1,336.89 lakhs).
  3. Consolidated FY26 Revenue from operations: ₹ 1,57,439.56 lakhs (up from ₹ 1,48,687.92 lakhs in FY25).
  4. Geographical revenue breakdown (Consolidated FY26): India ₹ 45,296.44 lakhs, EMEA ₹ 48,912.73 lakhs, APAC ₹ 26,328.37 lakhs, USA ₹ 36,902.02 lakhs.
  5. Consolidated FY26 Net cash generated from operating activities: ₹ 23,185.93 lakhs (up from ₹ 21,497.67 lakhs in FY25).
  6. Consolidated FY26 Net cash used in investing activities: ₹ (16,222.16) lakhs.
  7. Consolidated FY26 Net cash used in financing activities: ₹ (8,737.26) lakhs.
  8. Consolidated FY26 Cash and cash equivalents at year-end: ₹ 10,353.35 lakhs.
  9. Consolidated FY26 Total Assets: ₹ 2,44,247.50 lakhs (up from ₹ 2,04,507.83 lakhs in FY25).
  10. Consolidated FY26 Total Equity: ₹ 1,77,734.95 lakhs (up from ₹ 1,51,643.21 lakhs in FY25).
  11. Consolidated FY26 Trade Receivables: ₹ 70,824.02 lakhs (up from ₹ 55,667.98 lakhs in FY25).
  12. Both standalone and consolidated financial results are presented, showing similar trends but different magnitudes. Consolidated results include 8 subsidiaries.

Corporate Overview

  1. India
  2. EMEA
  3. APAC
  4. Significant financial impact from new Labour Codes
  5. Material legal claim and associated expenses
  6. Reliance on other auditors for subsidiary financial information
  7. Software licenses and implementation services
  8. Factual and compliant in reporting financial results and board decisions.
  9. Bank in Qatar (example)
  10. India
  11. EMEA
  12. APAC

Risk Factors

  1. Significant impact from new labor codes.
  2. Material legal claim expenses incurred.
  3. Profit and EPS declined year-over-year.
  4. Reliance on other auditors for subsidiaries.

Key Drivers

  1. Revenue growth across all geographies.
  2. Increased cash flow from operations.
  3. Stable dividend payout maintained.
  4. Experienced auditors re-appointed.

Auditor’s Report

  1. Unmodified opinion for both standalone and consolidated financial results.
  2. Reliance on other auditors for 4 subsidiaries (3 outside India) and their conversion adjustments.

Board Commentary

  1. Re-appointment of PricewaterhouseCoopers Services LLP as Internal Auditors for FY 2026-2027.
  2. Re-appointment of M/s Walker Chandiok & Co LLP as Statutory Auditors for a second term of 5 years.
  3. Recommended a final dividend of Rs. 6/- per equity share (60% on face value of Rs. 10/-) for the financial year ended 31st March 2026.
  4. Regulatory changes (Labour Codes)
  5. Legal disputes with customers
  6. Impact of new Labour Codes amounting to ₹ 3,005.76 lakhs classified as exceptional item.
  7. Provision for legal claim of ₹ 1,336.89 lakhs related to a bank in Qatar, classified as exceptional item.

Corporate Governance

  1. Audit Committee recommended re-appointment of auditors.

Management Discussion & Analysis

Operational Focus Areas

  1. Monitoring finalization of Labour Code rules
  2. Managing ongoing legal proceedings

Performance Drivers

  1. Revenue growth across all geographical segments

Risk Control Measures

  1. Expert assessment for Labour Codes impact
  2. Appeals in legal proceedings

Critical Risks

  1. Regulatory changes (Labour Codes)
  2. Legal disputes with customers