Delhi, India – Today, Nagarro, a global AI transformation and engineering leader, presented its unaudited financial numbers for Q1 2026 and released its three-month statement.
In Q1 2026, revenue grew to €248.1 million, up 0.9% QoQ from €245.9 million in Q4 2025 and up 1.2% QoQ in constant currency. Revenue grew 0.5% YoY from €246.9 million in Q1 2025 and was up 6.5% YoY in constant currency, while organic revenue growth was down 1.1% YoY in Euro terms but up 4.8% YoY in constant currency. Gross profit grew to €77.4 million in Q1 2026 from €75.5 million in Q1 2025. Gross margin grew to 31.2% in Q1 2026 from 30.6% in Q1 2025. Adjusted EBITDA grew by €1.0 million from €30.2 million (12.2% of revenue) in Q1 2025 to €31.2 million (12.6% of revenue) in Q1 2026.
EBITDA increased by €5.7 million from €33.0 million in Q1 2025 to €38.8 million in Q1 2026 mainly due to a relative increase in income from reversal of share-based payment arrangements cost of €4.1 million; which was adjusted for calculating Adjusted EBITDA. EBIT increased by €5.9 million from €24.1 million in Q1 2025 to €30.0 million in Q1 2026. Net profit increased by €7.9 million to €19.2 million in Q1 2026 from €11.2 million in Q1 2025. The number of clients generating more than €1 million in last 12-month revenue was 179 in Q1 2026, down from 186 in Q1 2025, as several implementation-led programs were successfully completed and converted into stable, recurring managed services engagements.
Operating cash flows in Q1 2026 declined to negative €0.3 million from positive €37.5 million in Q1 2025 mainly due to a relative increase in working capital of €32.4 million. Factoring utilization under the non-recourse factoring program was decreased slightly by €0.2 million in Q1 2026, as compared to Q1 2025. Days of sales outstanding, calculated based on the quarterly revenue and including both contract assets and trade receivables, has increased from 82 days on December 31, 2025, to 86 days on March 31, 2026.
Nagarro’s cash balance at the end of March 31, 2026, was €112.6 million as against €124.6 million at the end of December 31, 2025. Nagarro’s loans and borrowings at the end of March 31, 2026, were €310.9 million as against €310.1 million at the end of December 31, 2025. The company added 540 professionals (net) in Q1 2026 to 18,543.
Manas Human, co-founder and CEO of Nagarro, said, “Our Q1 year-over-year growth came in as guided. We are advancing as an AI transformation and engineering company, and strengthening our advisory capabilities to be a trusted partner for our clients’ AI transformation.”
The summary of Q1 2026 unaudited numbers is as follows:
| Q1 2026 mEUR | Q1 2025 mEUR | Growth | |
| Revenue | 248.1 | 246.9 | 0.5% YoY 6.5% YoY in constant currency |
| Gross profit | 77.4 | 75.5 | 2.4% YoY |
| Gross margin | 31.2% | 30.6% | |
| Adjusted EBITDA | 31.2 | 30.2 | 3.3% YoY |
| Adjusted EBITDA margin | 12.6% | 12.2% | |
| EBITDA | 38.8 | 33.0 | 17.4% YoY |
| EBIT | 30.0 | 24.1 | 24.6% YoY |
| Net profit | 19.2 | 11.2 | 70.7% YoY |
Nagarro SE will hold its earnings call to discuss Q1 2026 results on May 15, 2026, at 01:00 pm CEST (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm BST / 03:00 pm GST / 04:30 pm IST / 07:00 pm SGT / 08:00 pm JST).
To attend, please register in advance at https://www.nagarro.com/en/investor-relations/quarterly-statement-call-q1-2026.
