Newgen Software has announced its Q3 Fiscal 2026 results. Revenue growth seemed to slow slightly in the third quarter, but the trend remains upward. Revenue from operations was RS 400.3 Cr, up 5% year-over-year. However, annuity revenues rose by 20% in Q3 to RS 250 Cr. This growth was driven by subscription revenues, which rose 29% to RS 134 Cr, with the SaaS component growing 48% year-over-year.
Despite this growth in subscription revenues, the share price fell sharply. Over the last five days, the share price has dropped by over 16% and stands at 637.85 INR as of writing. Revenue from the first nine months of the fiscal year is RS 11.217 Cr, up 6% year-over-year. Profits also rose by 7% to RS 222 Cr.
Mr Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd., said, “Our nine-month performance showcases our strong business momentum. Subscription-led growth remains robust with strong contributions from the US, UK, and Australia, validating our geographic expansion strategy.
“We onboarded 34 new logos during the nine month period, reinforcing the trust and preference global enterprises place in our platform. We also maintained margin strength through targeted productivity initiatives during this period.”
Where is Newgen finding business?
In Q3, revenues were solid worldwide, with EMEA (31%), India (29%), the US (24%), and APAC (Ex India) at 16%. This is broadly in line with a year ago, though it shows a slight increase from Q3 2025 for the US (21%) and small decreases for India (31%) and EMEA (32%).
In terms of share by industry, there was a slight (1%) decrease in Insurance and Healthcare to 13%, with an equivalent increase in banking to 71%. Government remained flat at 10%.
Despite those changes, Mr Virender Jeet, CEO of Newgen Software, remains bullish about the Insurance sector. He commented, “Our leadership in Insurance is deepening steadily, with our Policy Administration System (PAS) offering, helping us secure a strong foothold in this high-value vertical.
“Meanwhile, our AI-driven solutions are gaining global traction—most notably through early deployments, establishing us as a credible player in applied AI for mission-critical use cases. We are particularly excited about our next-generation, AI-led products, which are expected to significantly enhance productivity, design intelligence, and automation.”
Wins, implementations and recognition
During the 3rd quarter, Newgen signed 7 net-new logos, and 34 logos have been added year to date. It also celebrated the implementation of its Digital Account Opening and Maintenance Solution at Old Second National.
Analysts also recognised Newgen Software in Q3:
- Named as a “Niche Player” in Gartner Magic Quadrant for Business Orchestration and Automation Technologies, October 2025
- Named as a “Representative Vendor” in Gartner Market Guide for Commercial Loan Origination Solutions, December 2025
- Named in the Gartner Market Guide for Commercial Banking Trade Finance in October 2025
- Named a leader in IDC MarketScape: US Provider Data Management for Payers 2025–2026 Vendor Assessment
- Named in Forrester’s The Accounts Payable Invoice Automation Software Landscape, Q4 2025
- Named in The Forrester Wave: Insurance Agency Management Systems, Q4 2025
Enterprise Times: What does this mean
While the share price dipped, the long-term prospects seem solid, especially with the significant growth in subscriptions, which is a focus for the business. Newgen has been fairly quiet this quarter regarding customer wins and implementations. It will be interesting to see what news emerges in Q4.
A year ago, there was a flurry of customer announcements. It will also be interesting to see which events it attends worldwide. To date, it has not confirmed any attendance on its events page.
