Nagarro Releases Preliminary Financial Results and Independent Investigation Outcomes for 2025 and 2026
In a recent announcement, Nagarro unveiled its preliminary results for the fiscal year 2025, which show a notable increase in revenue. The company reported a revenue of €999.3 million, a modest rise of 2.8% compared to €972.0 million in 2024. Adjusted for currency fluctuations, the growth rate was even more impressive at 6.1%. Gross profit also saw an uptick, reaching €321.3 million, reflecting a gross margin of 32.2%, a significant enhancement from the previous year’s 30.4% gross margin. However, the adjusted EBITDA fell from €147.5 million in 2024 to €138.2 million in 2025, resulting in an adjusted EBITDA margin of 13.8%, which remains within the revised guidance range of 13.5% to 14.5%.
The company's EBITDA for 2025 was reported at €118.7 million, a decrease from €134.0 million in the previous year. This decline in EBITDA was notably influenced by a non-realized foreign exchange loss of €15.5 million due to intercompany loans within the Nagarro group, a factor not adjusted in this report. Adjustments in the EBITDA composition also included a one-time cost of €12.4 million linked to the implementation of new labor laws in India, which increased performance-related obligations.
Nagarro's EBIT experienced a drop to €83.0 million, down from €96.7 million in 2024, while available cash at the end of 2025 was reported at €124.6 million, compared to €192.6 million at the end of the previous fiscal year. Throughout 2025, Nagarro executed a buyback of its own shares, accumulating a total of 919,421 shares for €67.8 million. By the year-end, the company employed 18,003 professionals.
CEO Manas Human remarked that despite negative effects from currency exchanges, the company’s underlying business performance aligned with expectations. Taking into account the exchange rates that were in effect for their 2025 guidance, Nagarro’s total revenue for the year would be around the mid-point of their projections, estimating between €1.020 billion to €1.080 billion. The adjusted EBITDA, excluding unrealized exchange effects, would stand at approximately €153.7 million, positioning it at the upper part of their guidance for adjusted EBITDA margins of 14.5% to 15.5%.
Looking forward towards 2026, Nagarro anticipates revenue ranging from €1.000 billion to €1.060 billion, largely based on current exchange rates and without considering future acquisitions. This represents a projected growth of around 5% against the local revenue in euros for 2025 at current exchange rates. The company is forecasting a gross margin of about 32% for 2026 and an adjusted EBITDA margin between 14.5% and 15.5%. Nagarro continues to monitor evolving geopolitical and macroeconomic frameworks that could influence their customers' decision-making processes.
Additionally, the firm concluded an independent investigation addressing previous allegations of fraud. An external audit was commissioned to probe these claims thoroughly, ensuring complete collaboration and access to significant information from Nagarro. The investigation involved extensive document reviews, forensic analyses, and consultations across key functions and regions. It confirmed that none of the allegations were substantiated, concluding with no evidence of wrongdoing or misconduct on the part of the company.
However, the investigation did highlight areas in corporate structure and governance that could benefit from improvement, and Nagarro is addressing these issues proactively. Christian Bacherl, Chair of the Supervisory Board, emphasized the importance of the investigation’s conclusions, stating that no misconduct was found, which marks a significant milestone for the company. Nagarro is committed to strengthening governance practices and processes as part of its ongoing evolution.
Nagarro strives to be a global leader in Digital Engineering, empowering clients to become agile, innovative, digital-first businesses, which will help them thrive in their markets. With around 18,000 employees and a presence in 38 countries, the company embodies an entrepreneurial spirit and a vision of "Fluidic Intelligence." For further details, please visit www.nagarro.com.
The company's EBITDA for 2025 was reported at €118.7 million, a decrease from €134.0 million in the previous year. This decline in EBITDA was notably influenced by a non-realized foreign exchange loss of €15.5 million due to intercompany loans within the Nagarro group, a factor not adjusted in this report. Adjustments in the EBITDA composition also included a one-time cost of €12.4 million linked to the implementation of new labor laws in India, which increased performance-related obligations.
Nagarro's EBIT experienced a drop to €83.0 million, down from €96.7 million in 2024, while available cash at the end of 2025 was reported at €124.6 million, compared to €192.6 million at the end of the previous fiscal year. Throughout 2025, Nagarro executed a buyback of its own shares, accumulating a total of 919,421 shares for €67.8 million. By the year-end, the company employed 18,003 professionals.
CEO Manas Human remarked that despite negative effects from currency exchanges, the company’s underlying business performance aligned with expectations. Taking into account the exchange rates that were in effect for their 2025 guidance, Nagarro’s total revenue for the year would be around the mid-point of their projections, estimating between €1.020 billion to €1.080 billion. The adjusted EBITDA, excluding unrealized exchange effects, would stand at approximately €153.7 million, positioning it at the upper part of their guidance for adjusted EBITDA margins of 14.5% to 15.5%.
Looking forward towards 2026, Nagarro anticipates revenue ranging from €1.000 billion to €1.060 billion, largely based on current exchange rates and without considering future acquisitions. This represents a projected growth of around 5% against the local revenue in euros for 2025 at current exchange rates. The company is forecasting a gross margin of about 32% for 2026 and an adjusted EBITDA margin between 14.5% and 15.5%. Nagarro continues to monitor evolving geopolitical and macroeconomic frameworks that could influence their customers' decision-making processes.
Additionally, the firm concluded an independent investigation addressing previous allegations of fraud. An external audit was commissioned to probe these claims thoroughly, ensuring complete collaboration and access to significant information from Nagarro. The investigation involved extensive document reviews, forensic analyses, and consultations across key functions and regions. It confirmed that none of the allegations were substantiated, concluding with no evidence of wrongdoing or misconduct on the part of the company.
However, the investigation did highlight areas in corporate structure and governance that could benefit from improvement, and Nagarro is addressing these issues proactively. Christian Bacherl, Chair of the Supervisory Board, emphasized the importance of the investigation’s conclusions, stating that no misconduct was found, which marks a significant milestone for the company. Nagarro is committed to strengthening governance practices and processes as part of its ongoing evolution.
Nagarro strives to be a global leader in Digital Engineering, empowering clients to become agile, innovative, digital-first businesses, which will help them thrive in their markets. With around 18,000 employees and a presence in 38 countries, the company embodies an entrepreneurial spirit and a vision of "Fluidic Intelligence." For further details, please visit www.nagarro.com.
Topics General Business）
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