1. Opening Hook
If “AI will fix everything” was a drinking game, Newgen’s concall would’ve left everyone tipsy—but not knocked out. Q3 FY26 arrived with GenAI buzz, Gartner name-drops, and a neat pile of global wins, yet revenue growth politely tapped the brakes. While the market screamed automation revolution, Newgen calmly delivered… mid-single-digit growth and very human margin pressure.
This wasn’t a bad quarter. It just wasn’t the party LinkedIn promised. Annuity revenues strutted confidently, large deals kept the pipeline warm, and recognition trophies continued to multiply. But EBITDA margins quietly slipped, and statutory PAT reminded investors that labour codes also deserve attention.
Stick around. The interesting bits hide between “Representative Vendor” slides and debtor-day charts. Trust me—this concall gets spicier once the AI fog clears.
2. At a Glance
- Revenue up 5% YoY: Growth showed up, just not in running shoes.
- Annuity revenue up 20% YoY (Q3): Subscriptions doing the heavy lifting, as expected.
- EBITDA margin down to 26.5%: AI talks cost money—mostly salaries.
- Adjusted PAT up 1.3%: Profit tried, but statutory tax said “not today.”
- EPS at ₹6.42: Incremental gains, no fireworks.
- Debtor days at 125: Cash prefers scenic routes lately.
3. Management’s Key Commentary
“Annuity revenues grew 20% YoY in Q3.”
(Translation: Thank God for AMC, SaaS, and support. Licenses alone won’t save us 😏)
“We added 7 new logos this quarter and 34 in nine months.”
(Sales team still earning their coffee.)
“Recognized as a Niche Player in Gartner Magic Quadrant.”
(We’re famous, just not that famous yet.)
“Our GenAI-powered platforms enhance conversion and growth intelligence.”
(AI is now officially everywhere—especially in slide decks 🤖)
“EBITDA margins moderated due to investments and people costs.”
(Talent is expensive. So is ambition.)
“Debtor days fluctuate due to seasonality.”
(March collections are a personality trait.)
4. Numbers Decoded
| Metric | Q3 FY26 | YoY Take |
|---|---|---|
| Revenue | ₹4,003 mn | Steady, not spectacular |
| EBITDA | ₹1,062 mn | Margins blinked |
| EBITDA Margin | 26.5% | Down from 28.4% |
| Adjusted PAT | ₹901 mn | Incremental progress |
| Statutory PAT | ₹628 mn | Labour codes say hi |
| Debtor Days | 125 | Cash on vacation |
One-liner: Growth is real, but costs
