Newgen Software Technologies Ltd Q2 FY26 Concall Decoded – AI Buzz, Global Jazz, and Desi Calm
1. Opening Hook
While the world’s still waiting for “AI to change everything,” Newgen quietly did what most SaaS startups only tweet about — made money. The quarter saw revenue cross ₹400 crore, proving that sometimes the real intelligence is human capital, not artificial. As Krishna told Arjuna in the Gita — “Action is superior to inaction.”
So Newgen acted, while competitors are still strategizing their AI roadmaps in PowerPoint. The real drama, though, begins when margins, SaaS deals, and India’s “Make in India” dreams collide. Buckle up — this gets juicier than a Mumbai vadapav with extra chutney.
2. At a Glance
Revenue ₹401 Cr – Up 11% YoY; the “AI” was Actual Income this time.
“We achieved revenues of ₹401 crore, marking 11% YoY growth.” (Translation: The post-COVID excuses officially expired this quarter.)
“Subscription revenue grew 20%; we added 15 new logos.” (So, someone’s LinkedIn must’ve been buzzing with ‘Proud to announce!’ posts 😏)
“We’re deepening our presence in banking and insurance, and opening new territories.” (Because apparently, the world still needs more workflow automation.)
“AI investments are improving productivity by 20–30%.” (In short: fewer people, same output — classic corporate enlightenment.)
“We were featured in Forbes Asia Best Under a Billion, twice in a row.” (And they still called the quarter ‘moderate growth’. Humility.exe running.)
“We’ve reduced manpower by 100 people YoY.” (AI didn’t just write code; it quietly wrote a few pink slips too 😬)
“Cash flow from ops ₹90 crore – our balance sheet remains strong.” (Translation: CFO finally gets to smile without checking receivables every morning.)
4. Numbers Decoded
Metric
Value (Q2 FY26)
YoY Change
One-Line Analysis
Revenue
₹401 Cr
+11%
The growth engine’s back online.
Subscription Revenue
₹126 Cr
+20%
SaaS — the gift that keeps compounding.
PAT
₹82 Cr
Flat
Profits took a breather at 20.4% margin.
Cash Flow (Ops)
₹90 Cr
+15% est.
Money in the bank, not just in slides.
R&D Spend
9% of revenue
Steady
The code lab stays busy.
Sales & Marketing
21% of revenue
+2%
Booth banners don’t pay for themselves.
DSOs
124 days
Up
Customers still believe in “Net 90 + grace.”
(In summary: steady top-line, disciplined bottom-line, mildly extended credit line.)
5. Analyst Questions (with Fun Translations)
Q: Large-deal momentum seems revived; what changed? A: “Still challenges in India/EMEA, but mature markets booming.” (Translation: Western clients say yes faster; desis want three committees first.)
Q: Why are margins up? A: “Better mix, cautious hiring,
