Newgen Software Technologies Ltd reported a significant drop in earnings for the first quarter of FY27. The company’s net profit decreased by 40.9% sequentially, with revenue and operating profit also contracting during this period. In specific numbers, net profit fell to Rs 62.8 crore in the June quarter from Rs 106 crore in the previous quarter.
Revenue for Newgen Software Technologies Ltd saw a sequential decline of 21.2%, dropping to Rs 357 crore from Rs 453 crore in the previous quarter. Additionally, the company’s earnings before interest, tax (EBIT) decreased by 67.2% sequentially to Rs 46.8 crore, compared to Rs 143 crore in Q4FY26.
Despite the quarterly decline, the company experienced an 11% annual revenue growth with significant progress across various geographical regions. The EBITDA also showed a positive trend, witnessing a 24% growth and an increase in margins from 14% to 15.7% on an annual basis.
“Our SaaS and License Subscription revenues grew at 40% YoY to Rs 60 crore, reflecting the continued strength of our recurring revenue business. During the quarter, we added 10 new customer logos, secured strategic wins across banking, insurance, and enterprise content management,” mentioned Virender Jeet, Chief Executive Officer of Newgen Software Technologies Ltd.
Newgen Software Technologies Ltd observed a broad-based geographic growth, primarily led by the Americas with a 27% YoY revenue increase, followed by APAC at 12% YoY and EMEA at 10% YoY. This growth signifies healthy demand across key international markets. The company also expanded its global customer base by adding 10 new enterprise customers during the quarter.
Following the financial results, shares of Newgen closed at Rs 541, marking a decrease of Rs 16.70 or 2.99% on the National Stock Exchange.
