April 29: Nagarro, a global digital engineering leader, has released its audited financial statements and annual report for FY2025, reaffirming its preliminary results while demonstrating resilient growth amid a dynamic macroeconomic environment.
The company reported revenue of €999.3 million, reflecting a 2.8% year-on-year increase and 6.1% growth in constant currency terms. Nagarro also delivered strong improvements in 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 disciplined cost management despite macroeconomic pressures.
Operational Performance & Financial Position
Nagarro’s EBITDA performance in FY2025 was impacted by:
- Unrealized foreign exchange loss of €15.5 million on intra-group loans
- One-time expense of €12.4 million related to implementation of new labour codes in India
The company reported:
- EBIT: €83.0 million
- Strong cash generation, with operating cash flows rising to €102.8 million
- Improved efficiency, with Days Sales Outstanding (DSO) reducing from 88 days to 82 days
As of December 31, 2025:
- Cash balance stood at €124.6 million
- Loans and borrowings reduced to €310.1 million
- Workforce expanded to approximately 18,000 professionals across 38 countries
Shareholder Value & Capital Allocation
Nagarro continued its focus on shareholder value creation through:
- Share buybacks worth €67.8 million during FY2025
- Proposal of a dividend of €1.00 per share, subject to approval at the Annual General Meeting
Business Outlook
The company continues to strengthen its position as a digital engineering leader, supporting enterprises in becoming agile, innovative, and digital-first. While some implementation-led programs transitioned into managed services, resulting in a slight decline in high-revenue clients, this reflects a shift toward long-term, recurring engagements.
