Newgen Software Navigates Profit Decline Amid Growing Subscription Revenue

Newgen Software Technologies reported a 1.8% drop in net profit for Q4 2026 due to labor code provisions, while revenue rose 5.2%. Annual profit decreased by approximately 5%, but revenue increased by 6%, driven by a 24% growth in subscription-based streams, specifically SaaS and ATS revenue.

Newgen Software Technologies has reported a 1.8% decline in consolidated net profit for the fourth quarter that ended in March 2026, attributed primarily to provisions related to new labor codes. The company's net profit stood at Rs 106.29 crore, down from Rs 108.33 crore a year earlier, as per its latest filings.

Despite the dip in profit, Newgen's consolidated revenue from operations rose by 5.2% to Rs 457.01 crore, compared to Rs 429.88 crore in the corresponding period of the previous fiscal year. For the entire financial year ending March 31, 2026, the company's net profit fell by around 5% to Rs 301 crore from Rs 315.24 crore in FY25.

On the upside, Chairman and Managing Director Diwakar Nigam highlighted a notable 24% growth in subscription revenues, largely due to the expansion of SaaS and ATS revenue streams. The revenue mix improved significantly, as did the number of customers with billing exceeding Rs 5 crore, rising from 87 in FY25 to 101 in FY26.