Newgen Software Technologies Ltd reported its Q4, FY 2025 results for the quarter ending March 31, on May 2nd. Revenue rose 15% year over year to Rs 430CrFor the full year, revenue rose 20% to Rs 1,487. Profit after tax rose by 25% to RS 315Cr.
Note: This article was rewritten, as data from Q3 results was used incorrectly when originally published on 2nd May.
As a result, Newgen’s share price has risen over the last month and is 1,1119 INR as of writing, up 19.01 over the last month.
Mr. Diwakar Nigam, Chairman & Managing Director of Newgen Software Technologies Ltd., commented, “FY’25 was a year of healthy revenue growth and margin expansion for Newgen. Growth was driven by strong license and implementation revenues across markets.
“Our large customer base, with billing of over Rs 5 crores, increased to 87 customers from 65 customers last year. The quarter specifically witnessed strong growth and deal wins in the US region. Looking ahead, we see strong momentum building across our business and are energized by the growth prospects ahead.”
Over the last year, Newgen has added 62 new customer logos during the year. During the fourth quarter it has closed several significant deals in the US. The firm now has over 87 customers spending more than Rs 50 Million annually.
A business in balance
What is impressive about Newgen, especially in a world that may not only enter recession in some locations, is that its revenues are balanced. Growth in the US was especially strong at 20%, boosted by a significant deals in Q4 within the insurance sector:
- APAC, Revenue share for FY 25 – (16%)
- EMEA, Revenue share for FY 25 – (32%)
- India, Revenue share for FY 25 – (31%)
- US, Revenue share for FY 25 – (21%)
The firm remains very strong in Banking and Financial Services (71%), with Insurance & Healthcare (14%) and Government (7%) the other leading sectors. Its revenues for the year to date were split out between Annuity revenues (56%), sales of products (21%) and services (23%). The quarterly share of revenues for Q4 was:
- Implementation & Other services (26%)
- Annuity revenues, including Sale of Products (23%), SaaS (9%), ATS/AMC (17%) and Support (25%)
Awards flow
Newgen continues to win recognition from analysts and others. In Q4, it was honoured at the 21st Annual National Business & Community Conclave & Awards on “Mission Viksit Bharat @2047” with the CSR and Sustainability Award in the education category. Forbes Asia also recognised it as one of the 200 Best Under a Billion Software & Services Organizations.
The firm continues to be recognised by leading analysts with highlights during the year including:
- Named a niche vendor in the Gartner Magic Quadrant for Enterprise Low-Code Application Platforms (LCAP) 2024 for the fifth consecutive year.
- Named a leader in the IDC MarketScape Report for Intelligent Customer Communications Management and Automated Document Generation and Customer Communication Management.
- Named a “Leader” in The Forrester Wave: Content Platforms, Q1 2025, second time in a row.
- Recognized by Forrester among notable vendors in ‘The Low-Code Platforms For Professional Developers Landscape, Q4 2024,’ report.
Product strengthening
Newgen continues to develop its low-code platform along with solid investment in AI agents. With a sophisticated AI framework in place and the rollout across several customers of these new features, the future looks good for Newgen.
Mr. Virender Jeet, CEO of Newgen Software, commented, “Newgen continues to accelerate its AI-first strategy with significant investments in AI-driven products and solutions. This year, we have launched groundbreaking AI agents – Lumyn, Harper, and Marvin – which have already demonstrated their potential through several promising and viable use cases. We anticipate further growth and innovation in AI-led journeys as we build upon these successes.”
Looking forward
Newgen is growing strongly. It now has a direct presence in 8 countries and over 4,500 employees. It operates across 17 verticals and is seeing growth in its core market, banking. Jeet sees banking as the key driver for growth, with Insurance and Government becoming increasingly important as they grow market share.
On the analyst call, Jeet noted, “But for the company to grow, we still expect the banking to do extremely well. We have cases going forward, both in India and the Middle East this year. And we don’t see a challenge there to maintain the growth momentum. I think this current year saw 15% growth vis-à-vis 20% growth in banking, I would still treat as an anomaly rather than the — that is the trend going forward.”
Enterprise Times: What does this mean
Newgen Software continues to win projects for its NewgenONE low-code digital transformation platform across multiple sectors. One thing missing from this report is the cash at hand available for further investments. These were a strong set of results, and Newgen continues to grow its market share worldwide.
While it is very strong in India still, the company is becoming more balanced both regionally and across different sectors. Its efforts to start diversifying away from banking and financial services are bearing fruit.
It also seems like it is turning a corner in the US with some significant deals coming to fruition in Q4 and Jeet is also noted that the pipeline is strong for the first two quarters of the next fiscal year. It will be interesting to see how that plays out in the Q1/Q2 results.
