April 29: Nagarro, a global digital engineering leader, has released its audited financial statements and annual report for FY2025, reaffirming its preliminary numbers while demonstrating resilient performance in a dynamic macroeconomic environment.
The company reported revenue of €999.3 million, marking a 2.8% year-on-year increase and 6.1% growth in constant currency terms. Strong operational discipline contributed to improved profitability, with gross profit rising 8.6% year-on-year to €321.3 million, and gross margins expanding to 32.2% from 30.4% in FY2024.
Key Financial Highlights
- Revenue: €999.3 million (+2.8% YoY; +6.1% constant currency)
- Gross Profit: €321.3 million (+8.6% YoY)
- Gross Margin: 32.2% (up from 30.4%)
- Adjusted EBITDA: €138.2 million (margin at 13.8%)
- EBITDA: €118.7 million
- Net Profit: €39.5 million
- Operating Cash Flow: €102.8 million (up from €86.5 million in FY2024)
The Adjusted EBITDA margin of 13.8% remained within the company’s forecast range, reflecting continued cost discipline and operational efficiency.
Performance Overview
While Nagarro delivered strong growth at the gross profit level, overall profitability was impacted by:
- Unrealized foreign exchange loss of €15.5 million on intra-group loans
- One-time expense of €12.4 million related to the implementation of new labour codes in India
As a result:
- EBIT stood at €83.0 million, down from €96.7 million in FY2024
- Net profit was €39.5 million, compared to €49.2 million in FY2024
Despite these factors, the company strengthened its financial position through improved cash generation and efficiency, with Days Sales Outstanding (DSO) improving from 88 days to 82 days.
Balance Sheet & Capital Allocation
As of December 31, 2025:
- Cash balance: €124.6 million
- Loans and borrowings: €310.1 million (down from €329.6 million)
Nagarro also:
- Repurchased shares worth €67.8 million during FY2025
- Announced a proposed dividend of €1.00 per share, subject to approval at the Annual General Meeting
Operational Strength
The company closed FY2025 with approximately 18,000 professionals across 38 countries, reinforcing its global delivery capabilities and position as a leading digital engineering partner.
A slight decline in clients generating over €1 million annually—from 186 to 180—reflects the successful transition of several implementation-led projects into stable, recurring managed services engagements, highlighting a shift toward long-term client relationships.
