Target: ₹1,091
CMP: ₹995.95
posted a strong Q2 FY26, with revenue growing 11 per cent y-o-y to ₹401 crore, and profit rising 16 per cent to ₹82 crore.
The company’s subscription revenue surged 20 per cent to ₹126 crore. The company is set to benefit from rising global demand for digital transformation, increased adoption of cloud/SaaS models, and strong investments in AI-powered solutions.
Expansion into new geographies and verticals, along with an active partner ecosystem, further reinforce sustained long-term growth potential. The quarter saw 15 new clients and significant multimillion-dollar orders in the UK, Europe, Ghana, and India.
Both the US and Asia-Pacific regions grew by 22 per cent, while India and EMEA posted steady gains. Their focus on digital solutions and AI-based products is helping improve efficiency, which in turn supports stable profit margins (20.4 per cent).
Newgen is also benefiting from investments in sales, marketing, and R&D. The company’s order book grew over 20 per cent compared to last year, and cash flow remains healthy. Overall, Newgen’s strategy of scaling up SaaS, increasing global presence, and leveraging AI investments is driving consistent growth and strong financial performance.
We reiterate our rating to Hold , with a TP of ₹1,091, assigning a 36.5x FY27E EPS multiple