Nagarro's Financial Growth in FY 2025 and Future Outlook for 2026
Nagarro, a leading global digital engineering company, has recently announced its preliminary financial results for the fiscal year 2025, along with guidance for the upcoming fiscal year 2026 and the findings of an independent investigation conducted to address previous allegations of misconduct.
According to the figures released, Nagarro achieved a remarkable revenue of €999.3 million in 2025, marking an increase from €972.0 million in 2024. This growth reflects a 2.8% year-over-year increase, with an impressive constant currency growth of 6.1%. The gross profit for the year also saw a significant rise, reaching €321.3 million, which translates to a gross margin of 32.2%, up from 30.4% the previous year.
However, the adjusted EBITDA saw a decline, recording €138.2 million compared to €147.5 million in the prior year, resulting in an adjusted EBITDA margin of 13.8%. This decline has been partly attributed to an unrealized foreign exchange loss of €15.5 million on intra-group loans. Additionally, Nagarro faced one-off expenses amounting to €12.4 million related to the implementation of the New Labour Codes in India that impacted the defined benefit obligations from past service costs.
Looking ahead, Nagarro expects revenue for fiscal year 2026 to range between €1,000 million and €1,060 million, calculated using current foreign exchange rates and excluding any potential future acquisitions. This forecast suggests a conservative growth projection of approximately 5% over 2025 local revenues when adjusted to current exchange rates. The company anticipates maintaining a gross margin around 32%, with an adjusted EBITDA margin expected between 14.5% and 15.5%.
CEO Manas Human commented on the company's performance amid the challenging economic environment, reaffirming that despite fluctuations in currency, their core performance remains on track with expectations. He emphasized that under prevailing exchange rates during their initial guidance, full-year revenue would approximate the midpoint of their projected range of €1,020 million to €1,080 million.
An important aspect of Nagarro's recent announcement involved the conclusion of an independent investigation into allegations of fraud. The company's Supervisory and Management Boards commissioned this investigation to dispel any doubts regarding its operational integrity. Conducted by the firms White & Case, with Alvarez & Marsal's assistance, the investigation was thorough, including document reviews, interviews, and site visits across different regions.
Crucially, the findings indicated that no evidence of fraud or misconduct was found, effectively clearing the company from previous allegations. The investigative process did reveal some areas requiring improvement in governance and documentation, which Nagarro is keen to address. The Chairperson of Nagarro's Supervisory Board, Christian Bacherl, stated, "Today's announcement is a milestone for Nagarro, confirming that no misconduct or fraud was identified. We are committed to reinforcing our governance structure as we advance."
Nagarro remains poised for growth, employing approximately 18,000 professionals across 38 countries, and advocates for a novel operational paradigm called Fluidic Intelligence, striving for enhanced collaboration between humans and AI.
The company plans to release its audited annual report for FY 2025 on April 29, 2026, providing further clarity on its financial standing and strategic direction. Investors and professionals alike are keenly watching Nagarro's developments as it positions itself for the future amidst evolving market conditions.
Preliminary Financial Results for FY 2025
According to the figures released, Nagarro achieved a remarkable revenue of €999.3 million in 2025, marking an increase from €972.0 million in 2024. This growth reflects a 2.8% year-over-year increase, with an impressive constant currency growth of 6.1%. The gross profit for the year also saw a significant rise, reaching €321.3 million, which translates to a gross margin of 32.2%, up from 30.4% the previous year.
However, the adjusted EBITDA saw a decline, recording €138.2 million compared to €147.5 million in the prior year, resulting in an adjusted EBITDA margin of 13.8%. This decline has been partly attributed to an unrealized foreign exchange loss of €15.5 million on intra-group loans. Additionally, Nagarro faced one-off expenses amounting to €12.4 million related to the implementation of the New Labour Codes in India that impacted the defined benefit obligations from past service costs.
Outlook for FY 2026
Looking ahead, Nagarro expects revenue for fiscal year 2026 to range between €1,000 million and €1,060 million, calculated using current foreign exchange rates and excluding any potential future acquisitions. This forecast suggests a conservative growth projection of approximately 5% over 2025 local revenues when adjusted to current exchange rates. The company anticipates maintaining a gross margin around 32%, with an adjusted EBITDA margin expected between 14.5% and 15.5%.
CEO Manas Human commented on the company's performance amid the challenging economic environment, reaffirming that despite fluctuations in currency, their core performance remains on track with expectations. He emphasized that under prevailing exchange rates during their initial guidance, full-year revenue would approximate the midpoint of their projected range of €1,020 million to €1,080 million.
Conclusion of Independent Investigation
An important aspect of Nagarro's recent announcement involved the conclusion of an independent investigation into allegations of fraud. The company's Supervisory and Management Boards commissioned this investigation to dispel any doubts regarding its operational integrity. Conducted by the firms White & Case, with Alvarez & Marsal's assistance, the investigation was thorough, including document reviews, interviews, and site visits across different regions.
Crucially, the findings indicated that no evidence of fraud or misconduct was found, effectively clearing the company from previous allegations. The investigative process did reveal some areas requiring improvement in governance and documentation, which Nagarro is keen to address. The Chairperson of Nagarro's Supervisory Board, Christian Bacherl, stated, "Today's announcement is a milestone for Nagarro, confirming that no misconduct or fraud was identified. We are committed to reinforcing our governance structure as we advance."
Nagarro remains poised for growth, employing approximately 18,000 professionals across 38 countries, and advocates for a novel operational paradigm called Fluidic Intelligence, striving for enhanced collaboration between humans and AI.
The company plans to release its audited annual report for FY 2025 on April 29, 2026, providing further clarity on its financial standing and strategic direction. Investors and professionals alike are keenly watching Nagarro's developments as it positions itself for the future amidst evolving market conditions.
Topics Business Technology）
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