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Nagarro SE Interim / Quarterly Report 2026
719_ir_2026-05-14_8fbd482d-a8f2-44ab-ad8b-fca1d93af792.pdf
Interim / Quarterly Report
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Fluidic Intelligence
Q1 Group quarterly statement for the period ended March 31, 2026
nagarro
The terms "Nagarro", "Company", "Group" and "we" in this report refer to Nagarro SE and its subsidiaries.
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Nagarro Group
Key figures
| Three-month period ended March 31 | Q1 2026 | Q1 2025 | YoY Change | Q4 2025 | QoQ Change |
|---|---|---|---|---|---|
| kEUR | kEUR | % | kEUR | % | |
| Revenue | 248,135 | 246,884 | 0.5% | 245,867 | 0.9% |
| Cost of revenues | 170,775 | 171,408 | -0.4% | 168,102 | 1.6% |
| Gross profit | 77,360 | 75,540 | 2.4% | 77,791 | -0.6% |
| Adjusted EBITDA | 31,230 | 30,224 | 3.3% | 33,408 | -6.5% |
| Revenue by geography | |||||
| North America | 86,701 | 85,025 | 2.0% | 86,672 | 0.0% |
| Central Europe | 72,090 | 73,827 | -2.4% | 72,362 | -0.4% |
| Rest of Europe | 30,267 | 30,326 | -0.2% | 30,571 | -1.0% |
| Rest of World | 59,076 | 57,707 | 2.4% | 56,262 | 5.0% |
| Revenue by country | |||||
| Germany | 57,049 | 58,027 | -1.7% | 55,405 | 3.0% |
| US | 85,483 | 84,152 | 1.6% | 85,735 | -0.3% |
| Revenue by industry | |||||
| Automotive, Manufacturing and Industrial | 65,580 | 58,979 | 11.2% | 62,068 | 5.7% |
| Energy, Utilities and Building Automation | 14,473 | 19,637 | -26.3% | 13,754 | 5.2% |
| Financial Services and Insurance | 33,668 | 30,076 | 11.9% | 29,962 | 12.4% |
| Horizontal Tech | 9,037 | 13,686 | -34.0% | 11,192 | -19.3% |
| Life Sciences and Healthcare | 17,022 | 17,122 | -0.6% | 18,068 | -5.8% |
| Management Consulting and Business Information | 20,751 | 17,268 | 20.2% | 19,056 | 8.9% |
| Public, Non-profit and Education | 22,817 | 22,287 | 2.4% | 22,669 | 0.7% |
| Retail and CPG | 33,335 | 33,235 | 0.3% | 35,085 | -5.0% |
| Telecom, Media and Entertainment | 10,847 | 11,946 | -9.2% | 10,940 | -0.8% |
| Travel and Logistics | 20,605 | 22,646 | -9.0% | 23,073 | -10.7% |
Gross profit, gross margin, and Adjusted EBITDA are neither required by, nor presented in accordance with IFRS. Non-IFRS measures should not be considered in isolation or as a substitute for results under IFRS.
Gross profit is calculated on the basis of total performance which is the sum of revenue and own work capitalized.
Rounding differences may arise when individual amounts or percentages are added together.
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| Three-month period ended March 31 | 2026 | 2025 |
|---|---|---|
| % | % | |
| Revenue concentration (by customer) | ||
| Top 5 | 16.4% | 14.6% |
| Top 6-10 | 9.3% | 9.0% |
| Outside of Top 10 | 74.3% | 76.4% |
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Index
Section A
Management Report
- Overview ... 6
- Financial performance: review and analysis ... 6
- Outlook ... 13
- Developments after March 31, 2026 ... 13
Section B
Interim condensed consolidated financial statements
Interim condensed consolidated statement of financial position ... 15
Interim condensed consolidated statement of comprehensive income ... 17
Interim condensed consolidated statement of changes in equity ... 19
Interim condensed consolidated statement of cash flows ... 21
Other notes ... 22
Section C
Important information
Financial calendar ... 25
Legal notice ... 25
Section A
Management Report
G
1. Overview
In Q1 2026, revenue grew 6.5% YoY in constant currency and 0.5% YoY in Euro terms. Organic YoY revenue for the quarter was up by 4.8% in constant currency and down by 1.1% YoY in Euro terms. Compared to Q4 2025, revenue grew 1.2% QoQ in constant currency and grew marginally by 0.9% QoQ in Euro terms. Organic QoQ revenue for the quarter grew very marginally by 0.2% in constant currency and declined very marginally by 0.1% in Euro terms. The company added 540 professionals (net) in Q1 2026 resulting in 18,543 professionals out of which 16,897 were professionals in engineering as of March 31, 2026. The number of clients doing more than €1 million in last 12-month revenue with Nagarro - an important internal indicator of growth potential - declined from 186 in Q1 2025 to 179 in Q1 2026, as several implementation-led programs were successfully completed and converted into stable, recurring managed services engagements.
2. Financial performance: review and analysis
The overall course of business for Nagarro in Q1 2026 was challenging. The global economy was mixed with growth supported by strong momentum in technology-related investment and production and lower tariff rates than previously assumed. On the downside, conflict in the Middle East has led to higher energy prices which is raising costs, weighing on demand, and adding to inflationary pressures. Clients remain selective in initiating new projects, prioritizing those with the strongest expected return on investment.
A. Results for Q1 2026
Revenue
Nagarro's revenue grew to €248.1 million in Q1 2026 from €246.9 million in Q1 2025, a growth of 0.5%. In constant currency, Q1 2026 YoY revenue growth was 6.5%.
Gross margin and Adjusted EBITDA
Gross margin is the ratio of gross profit to revenue, where gross profit is calculated as the difference between total performance and cost of revenues. Total performance includes customer revenue and own work capitalized. Cost of revenues comprises direct costs attributable to customer revenue delivery, including personnel costs for employees and freelancers, related travel expenses, software licenses, and further customer-related costs (reimbursable and non-reimbursable). Cost of revenues excludes Global Business Unit (GBU) management costs and expenses related to consultative sales and thought-leadership activities across Centers of Excellence and GBUs.
Personnel costs are classified between Cost of revenues and Selling, General & Administrative expenses (SG&A) in accordance with a structured, time-based allocation policy. Costs are allocated based on actual timesheet entries and the nature of work performed. Costs directly attributable to customer delivery are classified under cost of revenues, while costs related to core support functions such as finance, HR, sales etc. are classified under SG&A.
The table below presents the gross margins:
| Three-month period ended March 31 | 2026 | 2025 |
|---|---|---|
| mEUR | mEUR | |
| Revenue | 248.1 | 246.9 |
| Own work capitalized | - | 0.1 |
| Total performance | 248.1 | 246.9 |
| Cost of revenues | (170.8) | (171.4) |
| Gross profit | 77.4 | 75.5 |
| Gross margin (as % of revenue) | 31.2% | 30.6% |
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We define Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization (EBITDA) adjusted to exclude effects that we consider extraordinary, such as items related to mergers and acquisitions, shared based payments, re-organizations, significant regulatory events, and exceptional events.
Mergers and acquisitions include effects such as impairment of goodwill, purchase price adjustments, badwill, foreign exchange effects on purchase price, transaction costs related to business combinations, retention bonus and non-capitalized earn-out expenses related to acquisitions. Share-based payments represent share based payment arrangements cost. Re-organization includes sale of equity investments, expenses relating to the strategic review of Company's listing and privatization choices and subsequent exploration of the take-private option. Significant regulatory events include additional employee benefits expense related to statutory impact of new Labor Codes in India. Exceptional events include independent investigation expenses following past external allegations and additional audit fees.
The reconciliation between Adjusted EBITDA and EBITDA is as follows:
| Three-month period ended March 31 | 2026 | 2025 |
|---|---|---|
| mEUR | mEUR | |
| EBITDA | 38.8 | 33.0 |
| Adjustment for special items | ||
| Mergers and acquisitions | ||
| Non-capitalized earn-out expense relating to acquisitions | (0.6) | - |
| Retention bonus expense as part of share purchase agreement of the acquired entities | 0.2 | 0.7 |
| Share-based payments | ||
| Share based payment arrangements cost | (7.6) | (3.5) |
| Exceptional events | ||
| Independent investigation expenses following past external allegations | 0.4 | - |
| Total adjustment for special items | (7.6) | (2.8) |
| Adjusted EBITDA | 31.2 | 30.2 |
| Revenues | 248.1 | 246.9 |
| Adjusted EBITDA (as % of revenues) | 12.6% | 12.2% |
CSAT and NPS scores
Our key non-financial KPIs are our client satisfaction (CSAT) score and Net Promoter Score (NPS). Both the CSAT and the NPS are measured via a standardized client satisfaction survey. This survey is sent every quarter to the person responsible for project success on the client side – excluding very small engagements, defined as projects with no more than 3 FTEs of average monthly staffing in the quarter.
This survey also does not cover engagements via acquisitions in up to 5 quarterly cycles after the completion of their integration into Nagarro's systems and processes. Despite these caveats, the CSAT and NPS results are very central to our management system.
Each CSAT survey asks clients to indicate how frequently they are satisfied with specific aspects of our services. Each survey consists of six questions, and for each question clients can respond with "Always", "Mostly", "Sometimes", or "Never". The CSAT score represents the proportion of responses marked as "Always" or "Mostly" across all surveys conducted during the reporting period. Responses are monitored closely at multiple levels — in aggregate, by individual question, and at the project level. While minor fluctuations are expected, any significant trends are analyzed and corrective internal actions are then taken to address it accordingly. At the aggregate level, the CSAT score reflects the percentage of responses rated as "Always" or "Mostly". Our CSAT score for Q1 2026 was $92.7\%$ (Q4 2025: $93.1\%$ ; Q1 2025: $94.3\%$ ). We expect this KPI to remain in the region of $92.0\%$ in 2026.
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The NPS question posed in the survey is: "On a scale of 1-10, how likely are you to recommend Nagarro to a friend or colleague?" Promoters are those who give a score of 9 or 10, Passives are those who give a score of 7 or 8, and Detractors are those who respond with a score below 7. The NPS score is calculated as (number of Promoters – number of Detractors) * 100/ (total number of NPS responses) and rounded to the nearest whole number. Nagarro's NPS score for Q1 2026 was 65 (Q4 2025: 69; Q1 2025: 69). We expect this KPI to remain in the region of 65 in 2026.
B. Result of operations
Revenue
Nagarro's revenue grew to €248.1 million in Q1 2026 from €246.9 million in Q1 2025, a growth of 0.5%. In constant currency, Q1 2026 YoY revenue growth was 6.5%. Organic YoY revenue growth for Q1 2026 was 4.8% in constant currency, which translated to negative 1.1% organic YoY revenue growth in Euro terms. The difference between growth in constant currency and growth in Euro terms was primarily driven by adverse foreign exchange movements, primarily in USD/EUR and INR/EUR, which had modest negative impact on reported revenues.
Industries with the most robust global growth in Q1 2026 over Q1 2025 included "Management Consulting and Business Information" (20.2%), "Financial Services and Insurance" (11.9%), and "Automotive, Manufacturing and Industrial" (11.2%).
The industries with negative growth in Q1 2026 over Q1 2025 were, "Horizontal Tech" (-34.0%), "Energy, Utilities and Building Automation" (-26.3%), "Telecom, Media and Entertainment" (-9.2%), and "Travel and Logistics" (-9.0%).
In the geographical revenue distribution, Nagarro generated 34.9% of its revenue from North America (Q1 2025: 34.4%), 29.1% of its revenue from Central Europe (Q1 2025: 29.9%), 23.8% of its revenue from Rest of World (Q1 2025: 23.4%) and 12.2% of its revenue from Rest of Europe (Q1 2025: 12.3%).
The top 5 currencies that contributed significantly to our revenues are listed below (in € million).
Three-month period ended March 31
Revenue currency
| 2026 | 2025 | |
|---|---|---|
| mEUR | mEUR | |
| EUR | 94.6 | 95.0 |
| USD | 87.2 | 90.9 |
| INR | 21.9 | 21.8 |
| AED | 9.5 | 9.0 |
| SAR | 6.6 | 5.1 |
Gross profit and Adjusted EBITDA
Gross profit grew to €77.4 million in Q1 2026 from €75.5 million in Q1 2025. Gross margin increased to 31.2% in Q1 2026 as compared to 30.6% in Q1 2025. Gross margin has improved by 0.6 percentage points compared to 2025 mainly due to improvement in project utilization. Adjusted EBITDA grew by €1.0 million to €31.2 million (12.6% of revenue) in Q1 2026 as compared to €30.2 million (12.2% of revenue) in Q1 2025. Our most significant adjustment to EBITDA in Q1 2026 is adjustment for reversal of expense related to share based payment arrangements cost amounting to €7.6 million.
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Figures in mEUR
EBITDA, EBIT, and net profit
EBITDA increased by €5.7 million to €38.8 million in Q1 2026 as compared to €33.0 million in Q1 2025 mainly due to an increase in income from currency movement by €3.5 million (primarily due to an increase in unrealized foreign exchange gains by €10.0 million on intra-group loans within the Nagarro Group, compared to unrealized foreign exchange losses in Q1 2025, partially offset by increase in expenses for foreign exchange forward transactions of €5.0 million) and increase in income from reversal of expense related to share based payment arrangements cost amounting to €4.1 million. This increase in EBITDA was partly offset by an increase in other operating expenses.
EBIT increased by €5.9 million to €30.0 million in Q1 2026 as compared to €24.1 million in Q1 2025. Interest income declined by €0.6 million in Q1 2026 due to lower bank balances compared with Q1 2025. Interest expense and depreciation and amortization expense also declined by €0.2 million and by €0.2 million, respectively in Q1 2026 as compared to Q1 2025. Income tax expense reduced by €2.4 million to €5.8 million (23.1% of EBT) in Q1 2026 as compared to €8.2 million (42.1% of EBT) in Q1 2025 mainly on account of decrease in tax withholdings as in Q1 2025, as there was withholding tax expense on payment of intra-group transfer of dividend within the Nagarro Group amounting to €2.8 million, while no such withholding tax arose in Q1 2026. In addition, a reversal of €0.5 million for provision for global minimum top-up tax reduced income tax expense in the current period.
As a result, net profit increased by €7.9 million to €19.2 million in Q1 2026 against €11.2 million in Q1 2025.
Nagarro has operations in 40 countries in which it pays its colleagues and vendors in various currencies. The top 5 currencies based on the domicile of respective entities that contributed significantly to our expenses (net of operating income) including taxes but excluding foreign currency income and expenses are listed below:
Three-month period ended March 31
Expenses currency
| 2026 | 2025 | |
|---|---|---|
| mEUR | mEUR | |
| INR | 91.6 | 95.3 |
| EUR | 65.6 | 61.4 |
| USD | 31.2 | 27.9 |
| RON | 13.2 | 13.5 |
| TRY | 7.1 | 7.5 |
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C. Financial position
Capital structure
For the purpose of Nagarro's capital management, capital includes issued capital, and all other equity reserves attributable to the equity holders of Nagarro. The primary objective of Nagarro's capital management is to maximize the shareholder value. Nagarro manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, Nagarro may adjust the dividend payment to shareholders or buy-back its own shares and redemption of treasury shares.
As such, Nagarro has retained flexibility to improve investors' participation in the Company's operational successes via opportunistic share buy-backs and the intention to pursue a sustainable dividend policy of distributing 10-20% of Nagarro's IFRS EBIT every year. Redemption of treasury shares does not have any impact on the equity.
On February 5, 2025, the Management Board of Nagarro SE resolved to make use of the authorization, which was granted by the shareholders' meeting of October 30, 2020, pursuant to Sec. 71 para. 1 no. 8 of the German Stock Corporation Act (Aktiengesetz, AktG) to repurchase shares of the Company until September 23, 2025, provided that these shares, together with other treasury shares which the Company has already acquired and still holds or which are attributable to it pursuant to Sections 71a et seq. of the German Stock Corporation Act (AktG), do not at any time account for more than 10% of the share capital. Accordingly, Nagarro SE has purchased 30,195 treasury shares amounting to €2.3 million during the quarter ended March 31, 2026.
Since September 23, 2022, Nagarro SE had entered into a Euro-denominated revolving syndicated credit facility agreement with five European credit institutions amounting to €350 million with an option to further increase the loan facility amount to €450 million. The utilized balance of this facility amounts to €304.5 million as of March 31, 2026.
We target a balanced debt-to-equity ratio and equity-to-total assets ratio that preserves flexibility for the Company, allowing it to react to business opportunities and to changes in macroeconomic conditions.
The net debt increased by €10.0 million to €267.5 million (net debt to adjusted EBITDA ratio of 1.9x) as of March 31, 2026, as against €257.5 million (net debt to adjusted EBITDA ratio of 1.9x) as of December 31, 2025.
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| mEUR | mEUR | |
| Loans and borrowings | 310.9 | 310.1 |
| Lease liabilities | 69.2 | 72.1 |
| Cash and cash equivalents | (112.6) | (124.6) |
| Net debt | 267.5 | 257.5 |
| Adjusted EBITDA for the first three months of year 2026 | 31.2 | - |
| Adjusted EBITDA for the full year 2025 | 138.2 | 138.2 |
| Adjusted EBITDA for the first three months of year 2025 | (30.2) | - |
| Adjusted EBITDA for last twelve months | 139.2 | 138.2 |
| Debt ratio (Net debt to Adjusted EBITDA) | 1.9 | 1.9 |
| Total assets | 746.2 | 743.0 |
| Equity | 174.5 | 155.0 |
| Equity ratio (% of total assets) | 23% | 21% |
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Liquidity
The company's liquidity position at the end of Q1 2026 was comfortable. The current assets were €388.6 million, of which cash was €112.6 million. The current liabilities were €155.9 million, yielding a working capital of €232.7 million.
Our total cash outflow in Q1 2026 was €13.5 million against €23.6 million in Q1 2025. Cash flows for Q1 2025 are presented in the same format as the full year financials for financial year 2025.
The operating cash flows decreased by €37.8 million to an outflow of €0.3 million in Q1 2026 as compared to an inflow of €37.5 million in Q1 2025. The decline was primarily driven by an increase in working capital of €32.4 million. In Q1 2025, operating cash flows benefited from higher collections of US public sector receivables. In addition, operating cash flows were negatively impacted by higher bonus payments, including retention bonuses, as well as increased statutory dues payments in India compared to Q1 2025. Furthermore, operating cash flows were negatively affected by €12.0 million due to decrease in non-cash income and expenses, when compared to Q1 2025. This was mainly attributable to an increase in unrealized foreign exchange gains by €10.0 million on intra-group loans within the Nagarro Group, compared to unrealized foreign exchange losses in Q1 2025. The increase in non-cash income also includes higher income from the reversal of share-based payment arrangements cost of €4.1 million, partially offset by increase in expenses for foreign exchange forward transactions of €5.0 million. These negative effects were partially offset by higher earnings before interest and taxes (EBIT) of €5.9 million and a decrease in income tax payments of €1.3 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.
The cash outflow from investing activities in Q1 2026 decreased by €1.7 million to €1.0 million as compared to €2.7 million in Q1 2025. Cash outflow in Q1 2026 decreased mainly due to a decrease in investment in fixed deposits by €1.3 million and a decrease in purchase of property, plant and equipment amounting to €1.0 million. This is being offset by a decrease in interest received amounting to €0.6 million.
The cash outflow from financing activities in Q1 2026 decreased by €46.2 million to €12.2 million as compared to €58.4 million in Q1 2025. Cash outflows decreased in Q1 2026 mainly on account of a decrease in net repayment of bank loans of €25.2 million and a decrease in the purchase of treasury shares amounting to €19.6 million.
Countries with the top 5 bank balances are listed below:
| Countries | March 31, 2026 | December 31, 2025 |
|---|---|---|
| mEUR | mEUR | |
| Germany | 35.4 | 53.4 |
| India | 10.0 | 6.2 |
| Austria | 9.5 | 5.9 |
| Romania | 7.1 | 5.1 |
| United States of America | 7.0 | 14.6 |
Net assets
Total assets grew by €3.2 million to €746.1 million as of March 31, 2026, as against €743.0 million as of December 31, 2025. Non-current assets decreased slightly by €3.8 million to €357.5 million as of March 31, 2026, as against €361.3 million as of December 31, 2025. Within non-current assets, right-of-use assets decreased by €3.5 million to €66.4 million (mainly due to their amortization of €5.5 million offset by net addition amounting to €2.0 million). Further, deferred tax assets also decreased by €2.7 million to €24.2 million. The decrease in non-current assets was offset by an increase in goodwill by €2.9 million on account of positive currency differences. Current assets increased by €7.0 million to €388.6 million as of March 31, 2026, as against €381.6 million as of December 31, 2025. Within current assets, contract assets and trade receivables, together increased by €16.8 million primarily due to an increase in receivables and contract assets from certain public sector customers. Further, other current financial assets increased by €4.7 million primarily due to an increase in receivables related to non-recourse factoring. The increase in current assets was partly offset by a decrease of €12.0 million in cash and cash equivalents to €112.6 million as of March 31, 2026 from €124.6 million as of December 31, 2025 and by a decrease of €2.0 million in other current assets, mainly due to lower prepayments and VAT receivables.
Total liabilities reduced by €16.3 million to €571.7 million as of March 31, 2026, as against €587.9 million as of December 31, 2025. Non-current liabilities decreased by €4.3 million to €415.7 million as of March 31, 2026, as against €420.0 million as of December 31, 2025. Within non-current liabilities, non-current lease liabilities decreased by €3.5 million to €50.3 million as of March 31, 2026 from €53.8 million as of December 31, 2025 and long-term employee benefits liabilities decreased by €1.4 million mainly due to lower fair values of cash-settled SOPs. Current liabilities decreased by €11.9 million to €155.9 million as of March 31, 2026, as against €167.9 million as of December 31, 2025. The decline was mainly driven by lower short-term provisions by €7.2 million primarily due to payment of employee bonuses (including retention bonuses). Short-term employee benefits liabilities also decreased by €5.3 million mainly due to lower fair values of cash-settled SOPs. Trade payables have also decreased by €2.4 million. The decrease in current liabilities was partly offset by an increase in current contract liabilities by €5.7 million mainly due to advance payments received from customers.
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13
Net assets represented by total equity increased by €19.4 million from €155.0 million as of December 31, 2025, to €174.5 million as of March 31, 2026. The increase is due to positive profit for the period amounting to €19.2 million and positive other comprehensive income (OCI) amounting to €2.4 million. This increase due to total comprehensive income has been offset by purchase of treasury shares amounting to €2.3 million.
3. Outlook
We maintain the expectations expressed in the Annual Report 2025.
4. Developments after March 31, 2026
In the period between the reporting date of March 31, 2026, and the approval of the report by the Management Board on May 14, 2026, for publication, Nagarro's business has not changed significantly.
Section B
Unaudited group quarterly information
for the three-month period ended March 31, 2026 in accordance with IFRS
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Interim condensed consolidated statement of financial position
| Assets | March 31, 2026 | December 31, 2025 |
|---|---|---|
| in kEUR | ||
| Intangible assets | 44,016 | 44,434 |
| Goodwill | 209,279 | 206,362 |
| Property, plant and equipment | 8,243 | 8,312 |
| Right-of-use assets | 66,408 | 69,942 |
| Non-current contract assets | 421 | 399 |
| Other non-current financial assets | 3,884 | 3,902 |
| Other non-current assets | 1,076 | 1,133 |
| Deferred tax assets | 24,203 | 26,864 |
| Non-current assets | 357,531 | 361,349 |
| Current contract assets | 25,851 | 20,725 |
| Trade receivables | 209,945 | 198,263 |
| Other current financial assets | 16,382 | 11,686 |
| Other current assets | 12,839 | 14,866 |
| Income tax receivables | 10,993 | 11,456 |
| Cash and cash equivalents | 112,604 | 124,617 |
| Current assets | 388,614 | 381,614 |
| Total assets | 746,145 | 742,963 |
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| Equity and Liabilities | March 31, 2026 | December 31, 2025 |
|---|---|---|
| in kEUR | ||
| Share capital | 12,922 | 12,922 |
| Treasury shares, at cost | (42,212) | (40,213) |
| Capital reserve | 241,714 | 241,794 |
| Profit carried forward | 225,116 | 185,624 |
| Net profit for the period | 19,167 | 39,492 |
| Changes in equity recognized directly in equity | (260,612) | (260,612) |
| Other comprehensive income | (21,623) | (23,984) |
| Total equity | 174,473 | 155,024 |
| Non-current loans and borrowings | 306,782 | 307,112 |
| Non-current lease liabilities | 50,293 | 53,818 |
| Long-term employee benefits liabilities | 32,405 | 33,827 |
| Other long-term provisions | 218 | 212 |
| Other non-current financial liabilities | 6,084 | 5,861 |
| Non-current liabilities from acquisitions | 5,838 | 5,349 |
| Deferred tax liabilities | 14,104 | 13,869 |
| Non-current liabilities | 415,722 | 420,048 |
| Current loans and borrowings | 4,147 | 2,948 |
| Current lease liabilities | 18,853 | 18,269 |
| Short-term employee benefits liabilities | 8,969 | 14,315 |
| Other short-term provisions | 19,815 | 26,989 |
| Current contract liabilities | 20,031 | 14,285 |
| Trade payables | 16,637 | 19,036 |
| Current liabilities from acquisitions | 2,886 | 3,871 |
| Other current financial liabilities | 42,513 | 42,305 |
| Other current liabilities | 14,679 | 15,711 |
| Income tax liabilities | 7,422 | 10,163 |
| Current liabilities | 155,950 | 167,891 |
| Total liabilities | 571,672 | 587,939 |
| Equity and liabilities | 746,145 | 742,963 |
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Interim condensed consolidated statement of comprehensive income
| Profit or loss for the three-month period ended March 31 | 2026 | 2025 |
|---|---|---|
| in kEUR | ||
| Revenue | 248,135 | 246,884 |
| Own work capitalized | - | 64 |
| Other operating income | 4,016 | 1,930 |
| Cost of freelancers and other direct costs | (22,121) | (18,967) |
| Staff costs | (166,583) | (173,793) |
| Reversal of impairment/(impairment) of trade receivables, contract assets and other financial assets | 34 | 580 |
| Other operating expenses | (24,712) | (23,665) |
| Earnings before interest, taxes, depreciation and amortization (EBITDA) | 38,769 | 33,033 |
| Depreciation, amortization and impairment | (8,751) | (8,929) |
| Earnings before interest and taxes (EBIT) | 30,018 | 24,104 |
| Finance income | 311 | 899 |
| Finance costs | (5,408) | (5,617) |
| Earnings before taxes (EBT) | 24,921 | 19,386 |
| Income taxes | (5,754) | (8,161) |
| Profit for the period | 19,167 | 11,225 |
| Other comprehensive income for the three-month period ended March 31 | 2026 | 2025 |
| in kEUR | ||
| Items that will not be reclassified to profit or loss | ||
| Actuarial gains (losses) | 608 | (346) |
| Tax effects | (157) | 110 |
| 451 | (236) | |
| Items that may be reclassified to profit or loss | ||
| Foreign exchange differences | 1,897 | (8,682) |
| Tax effects | 12 | 148 |
| 1,909 | (8,534) | |
| Other comprehensive income for the period | 2,361 | (8,770) |
| Total comprehensive income for the period | 21,528 | 2,455 |
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Basic earnings per share ('Basic EPS'):
| Number of shares | ||
|---|---|---|
| - based on weighted average | 12,375,292 | 13,241,271 |
| - based on outstanding shares | 12,376,031 | 13,049,645 |
| Basic EPS in EUR | ||
| - based on weighted average | 1.55 | 0.85 |
| - based on outstanding shares | 1.55 | 0.86 |
| Diluted earnings per share ('Diluted EPS'): | ||
| Number of shares | ||
| - based on weighted average | 12,379,522 | 13,244,811 |
| - based on outstanding shares | 12,380,262 | 13,053,185 |
| Diluted EPS in EUR | ||
| - based on weighted average | 1.55 | 0.85 |
| - based on outstanding shares | 1.55 | 0.86 |
19
Interim condensed consolidated statement of changes in equity
| Share capital | Treasury shares | Capital reserves | Profit carried forward | Net profit for the period | Changes in equity recognized directly in equity | Other comprehensive income | Total equity | ||
|---|---|---|---|---|---|---|---|---|---|
| Foreign exchange differences | Actuarial gain or loss on pension provisions | ||||||||
| in kEUR | |||||||||
| Balance at January 1, 2026 | 12,922 | (40,213) | 241,794 | 185,624 | 39,492 | (260,612) | (22,255) | (1,729) | 155,024 |
| Profit for the period | - | - | - | - | 19,167 | - | - | - | 19,167 |
| Other comprehensive income for the period | - | - | - | - | - | - | 1,909 | 451 | 2,361 |
| Total comprehensive income for the period | - | - | - | - | 19,167 | - | 1,909 | 451 | 21,528 |
| Transfer of profit or loss for the previous year to profit carried forward | - | - | - | 39,492 | (39,492) | - | - | - | - |
| Purchase of treasury shares | - | (2,271) | - | - | - | - | - | - | (2,271) |
| Reissuance of treasury shares under share-based payments | - | 273 | (273) | - | - | - | - | - | - |
| Dividends | - | - | - | - | - | - | - | - | - |
| Share capital issued | - | - | - | - | - | - | - | - | - |
| Stock option (SOP) and employee share participation program expense | - | - | 192 | - | - | - | - | - | 192 |
| Balance at March 31, 2026 | 12,922 | (42,212) | 241,714 | 225,116 | 19,167 | (260,612) | (20,345) | (1,278) | 174,473 |
20
| Share capital | Treasury shares | Capital reserves | Profit carried forward | Net profit for the period | Changes in equity recognized directly in equity | Other comprehensive income | Total equity | ||
|---|---|---|---|---|---|---|---|---|---|
| Foreign exchange differences | Actuarial gain or loss on pension provisions | ||||||||
| in kEUR | |||||||||
| Balance at January 1, 2025 | 13,776 | (39,757) | 241,030 | 215,631 | 49,156 | (260,612) | 6,539 | (3,102) | 222,660 |
| Profit for the period | - | - | - | - | 11,225 | - | - | - | 11,225 |
| Other comprehensive income for the period | - | - | - | - | - | - | (8,534) | (236) | (8,770) |
| Total comprehensive income for the period | - | - | - | - | 11,225 | - | (8,534) | (236) | 2,455 |
| Transfer of profit or loss for the previous year to profit carried forward | - | - | - | 49,156 | (49,156) | - | - | - | - |
| Purchase of treasury shares | - | (22,591) | - | - | - | - | - | - | (22,591) |
| Dividends | - | - | - | - | - | - | - | - | - |
| Share capital issued | - | - | - | - | - | - | - | - | - |
| Stock option (SOP) and employee share participation program expense | - | - | 94 | - | - | - | - | - | 94 |
| Balance at March 31, 2025 | 13,776 | (62,347) | 241,124 | 264,787 | 11,225 | (260,612) | (1,995) | (3,338) | 202,618 |
21
Interim condensed consolidated statement of cash flows
Cash flows
| Three-month period ended March 31 | 2026 | 2025 |
|---|---|---|
| in kEUR | ||
| Cash flows from operating activities | ||
| EBIT | 30,018 | 24,104 |
| Depreciation, amortization and impairments of non-current assets | 8,751 | 8,929 |
| Change in long-term employee benefits liabilities | 676 | 799 |
| Other non-cash income and expenses | (6,558) | 5,489 |
| Income taxes paid | (5,475) | (6,769) |
| Cash flows from changes in net working capital | (21,981) | 10,441 |
| Net cash (outflows) / inflows from non-recourse factoring | (5,713) | (5,469) |
| Net cash (outflow)/ inflow from operating activities | (282) | 37,523 |
| Cash flows from investing activities | ||
| Payments for property, plant and equipment and intangible assets | (1,295) | (2,286) |
| Proceeds from sale of property, plant and equipment | 3 | - |
| Investment in fixed deposits | (53) | (1,319) |
| Interest received | 325 | 923 |
| Acquisition of subsidiaries, net of cash acquired | - | (17) |
| Net cash (outflow)/ inflow from investing activities | (1,019) | (2,699) |
| Cash flows from financing activities | ||
| Purchase of treasury shares | (2,271) | (21,868) |
| Proceeds from bank loans | - | 5,718 |
| Repayment of bank loans | (545) | (31,482) |
| Payment of principal portion of lease liabilities | (4,928) | (5,683) |
| Interest paid | (4,469) | (5,064) |
| Net cash (outflow)/ inflow from financing activities | (12,212) | (58,379) |
| Total cash flow | (13,514) | (23,555) |
| Effects of exchange rate changes on cash and cash equivalents | 271 | (5,339) |
| Total changes in cash and cash equivalents | (13,243) | (28,893) |
| Cash and cash equivalents at the beginning of the period | 122,984 | 186,879 |
| Cash and cash equivalents at the end of the period | 109,741 | 157,986 |
22
Other notes
Accounting policies
The accounting policies have not changed compared to the accounting policies disclosed in the consolidated financial statements for the year 2025. The quarterly statement of Nagarro SE for the quarter ended March 31, 2026 has not been reviewed by an auditor or has not been audited according to section 115 (5) WpHG (German Securities Trading Act).
Treasury shares
The changes in treasury shares are composed as follows:
| 2026 | 2026 | 2025 | 2025 | |
|---|---|---|---|---|
| Numbers | kEUR | Numbers | kEUR | |
| Opening balance as at Jan 1 | 519,600 | 40,213 | 453,867 | 39,757 |
| Acquired during the period | ||||
| Tranche 1 | - | - | 684,384 | 50,082 |
| Tranche 2 | 30,195 | 2,271 | 235,037 | 17,754 |
| Total treasury shares acquired during the period | 30,195 | 2,271 | 919,421 | 67,835 |
| Redemption during the period | - | - | (853,688) | (67,379) |
| Utilized during the period | (3,529) | (273) | - | - |
| Closing balance as at Mar 31/ Dec 31 | 546,266 | 42,212 | 519,600 | 40,213 |
Factoring
Net cash flows from non-recourse factoring reconcile to the cashflows from operating activities as follows:
| Jan 1, 2026 | Cash flows | Currency differences | Interest | Mar 31, 2026 | |
|---|---|---|---|---|---|
| kEUR | 2026 | 2026 | 2026 | kEUR | |
| Net cash flows: | |||||
| Trade receivables derecognized | 34,302 | (4,594) | 215 | 241 | 30,163 |
| Receivables from factor | (4,364) | (5,029) | - | - | (9,394) |
| Liabilities from factoring | (8,443) | 3,911 | (54) | - | (4,586) |
| 21,495 | (5,713) | 161 | 241 | 16,183 |
23
| Cash flows | Currency differences | Interest | |||
|---|---|---|---|---|---|
| Jan 1, 2025 | 2025 | 2025 | 2025 | Mar 31, 2025 | |
| kEUR | kEUR | kEUR | kEUR | kEUR | |
| Net cash flows: | |||||
| Trade receivables derecognized | 25,274 | (6,727) | (829) | 312 | 18,029 |
| Liabilities from factoring | (5,688) | 1,257 | 224 | - | (4,206) |
| 19,586 | (5,469) | (605) | 312 | 13,823 |
The changes in trade receivables derecognized and liabilities from factoring are disclosed as net cash flows from non-recourse factoring while change in gross trade receivables is shown as "Trade receivables, contract assets and contract liabilities" under changes in net working capital.
Liabilities from factoring include kEUR 1,722 (December 31, 2025: kEUR 6,810) related to German non-recourse factoring arrangement which has been offset with receivables from factor. Accordingly, this has not been disclosed in loans and borrowings and loans and borrowings only include liabilities from factoring amounting to kEUR 2,863 (December 31, 2025: kEUR 1,633) which represents Nagarro's liabilities towards USA factoring arrangement.
Significant transactions with related parties in accordance with section 115 (4) sentence 2 WpHG and IAS 34.15B (j)
Business relationships between all companies included in these interim condensed consolidated financial statements were fully eliminated in these interim condensed consolidated financial statements.
Basis of consolidation
These interim condensed consolidated financial statements as at March 31, 2026 include all the subsidiaries of the Group as mentioned in the consolidated financial statements as at December 31, 2025 along with the following additions made during the first three months of 2026:
- Nagarro Headquarters Regional, Riyadh, Kingdom of Saudi Arabia
- Nagarro Services SPC, Muscat, Oman
- Nagarro Software Ltda, Rio de Janeiro, Brazil
The following entity was closed during the first three months of 2026:
- Nagarro Al Limited, Dubai, United Arab Emirates
Events after the balance sheet date
There are no significant developments between March 31, 2026 and the approval of this report by the Management Board on May 14, 2026, for publication.
Furthermore, as the geopolitical landscape in the Middle East evolves in relation to the ongoing conflict involving Iran, Nagarro continues to closely monitor these developments. Based on the current assessment, management does not anticipate any significant adverse effects on Nagarro's net assets, financial position, or results of operations.
Section C
Important Information
S
Financial calendar
For details, refer our IR website:
Financial calendar
Legal notice
Nagarro SE
Baierbrunner Str. 15
81379 Munich
Germany
Phone: +49 89 785 000 282
+49 89 231 219 151 (Investor Relations)
Fax: +49 32 222 132 620
E-Mail: [email protected]
[email protected] (Investor Relations)
Authorized representatives Management Board:
Manas Human (Chairperson), Annette Mainka, Vikram Sehgal, Prateek Aggarwal
Chairperson of the Supervisory Board:
Christian Bacherl
Registration Court:
HRB-Nr. 254410, Amtsgericht München
VAT ID:
DE 815882160
Responsible for the content acc. to Section 18 (2) of the Media Services State Treaty (MStV):
Manas Human
Investor Relations expert:
Michael Knapp
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