Board approves quarterly results and merger of wholly owned subsidiary
Board meeting on 23 October 2026 cleared two things.
By ScoutQuest · · 2 min read
| Line item | Latest | Year ago | YoY | Prev qtr | QoQ |
|---|---|---|---|---|---|
| Revenue from operations | 42,224.06 | 40,079.35 | +5.4% | 35,668.37 | +18.4% |
| Total income | 43,367.86 | 41,401.65 | +4.7% | 39,295.64 | +10.4% |
| Profit before tax | 11,015.14 | 10,533.54 | +4.6% | 8,211.56 | +34.1% |
| Profit after tax | 8,688.20 | 8,174.24 | +6.3% | 6,282.11 | +38.3% |
| Total comprehensive income | 9,077.01 | 8,851.88 | +2.5% | 6,402.87 | +41.8% |
| Basic EPS | 6.16 | 5.82 | +5.8% | 4.44 | +38.7% |
- Total income (latest)
- 43,367.86 lakhs (Year ago 41,401.65, +4.7%; Prev qtr 39,295.64, +10.4%)
- Profit after tax (latest)
- 8,688.20 lakhs (Year ago 8,174.24, +6.3%; Prev qtr 6,282.11, +38.3%)
- Period
- Quarter ended 30 September 2026 (Unaudited)
Also decided at the meeting
- Approved Scheme of Arrangement for amalgamation of wholly owned subsidiary Newgen Computers Technologies Limited into the Company under sections 230-232; Appointed Date April 1, 2026, subject to NCLT and other approvals.
Auditor's review
Conclusion: Unmodified
Notes to the results
- Exceptional items for year ended 31 March 2026: impact of Labour Codes INR 3,005.76 lakhs and provision for legal claim INR 1,336.89 lakhs, shown as unallocated expenditure.
Two decisions came out of the board meeting held on 23 October 2026: the quarterly and half-yearly results, and a scheme to merge a wholly owned subsidiary into the company.
The Scheme of Arrangement
- The board approved the amalgamation of Newgen Computers Technologies Limited, a wholly owned subsidiary, with and into Newgen Software Technologies Limited and their respective shareholders and creditors.
- The Appointed Date is April 1, 2026, as defined under the Scheme.
- Because the transferor company is a wholly owned subsidiary, the company is not required to obtain a 'No Objection Letter' from the stock exchanges where its equity shares are listed.
- The Scheme is subject to statutory and regulatory approvals, including from shareholders and creditors (as required, or to the extent not dispensed with by the relevant authorities), the Hon'ble National Company Law Tribunal, and any other approvals as may be required.
- In simple terms: the board has approved the merger, but it is not yet effective.
The numbers (consolidated, figures as printed in rupees lakhs)
- Revenue from operations was 42,224.06 for the quarter ended September 30, 2026, against 40,079.35 for the quarter ended September 30, 2025.
- Total income was 43,367.86 for the quarter.
- Net profit for the period was 8,688.20 for the quarter and 14,970.31 for the half year.
- On a standalone basis, Revenue from operations was 36,952.94 and Net profit for the period 7,950.33 for the quarter.
What the auditor said
The results carry an Independent Auditor's Review Report from Walker Chandiok & Co LLP on both the consolidated and standalone statements. The conclusion is that nothing has come to their attention that causes them to believe the statement has not disclosed the information required to be disclosed, or that it contains any material misstatement. This is a review, not an audit, so no audit opinion is expressed.
How a retail investor can read this
- The results are unaudited but have been reviewed by the statutory auditors, whose conclusion raises no exception.
- The merger involves a company that is already fully owned by Newgen, so the listed company's economic ownership of that business does not change; what changes is the legal structure once approvals come through.
- The Scheme still needs shareholder, creditor and Tribunal approvals, so the Appointed Date of April 1, 2026 is a defined date in the Scheme and not proof that the merger has already taken effect.
Also from Newgen Software Technologies
Newgen Software makes available audio recording of 23 October 2026 conference call on Q2 FY27 results
23 Oct 2026
Chairman & Managing Director continues indisposed, unavailable to discharge office duties
23 Oct 2026
Newgen Software Technologies Ltd press release, Q2 FY27
23 Oct 2026
More numbers
- Consolidated Net profit for the period, H1 FY2714,970.31 lakhs
- Standalone Revenue from operations, Q2 FY2736,952.94 lakhs
- Standalone Net profit for the period, Q2 FY277,950.33 lakhs
- Total income, latest quarter43,367.86 (Amount in Rupees lakhs)
- Total income, year-ago quarter41,401.65 (Amount in Rupees lakhs)
- Total income, previous quarter39,295.64 (Amount in Rupees lakhs)
- Total comprehensive income, latest quarter9,077.01 (Amount in Rupees lakhs)
- Total comprehensive income, year-ago quarter8,851.88 (Amount in Rupees lakhs)
- Total comprehensive income, previous quarter6,402.87 (Amount in Rupees lakhs)
- Profit after tax, latest quarter8,688.20 (Amount in Rupees lakhs)
- Profit after tax, year-ago quarter8,174.24 (Amount in Rupees lakhs)
- Profit after tax, previous quarter6,282.11 (Amount in Rupees lakhs)
- Revenue from operations, latest quarter42,224.06 (Amount in Rupees lakhs)
- Revenue from operations, year-ago quarter40,079.35 (Amount in Rupees lakhs)
- Revenue from operations, previous quarter35,668.37 (Amount in Rupees lakhs)
- Profit before tax, latest quarter11,015.14 (Amount in Rupees lakhs)
- Profit before tax, year-ago quarter10,533.54 (Amount in Rupees lakhs)
- Profit before tax, previous quarter8,211.56 (Amount in Rupees lakhs)
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