Newgen Software shares slip 6% post Q1; opportunity or exit signal?

Newgen Software Technologies shares slipped 5.7 per cent after the company released its Q1 results; PAT down 54 per cent Y-o-Y

Newgen Software Technologies shares slipped 5.7 per cent after the company released its Q1 results. The stock logged an intraday low at ₹967.3 per share on BSE. 

 

At 11:27 AM, Newgen Software Technologies share price was trading 5.52 per cent lower at ₹969.8 per share on the BSE. In comparison, the BSE Sensex was down 0.59 per cent at 81,777.81. 

 

The company's market capitalisation stood at ₹13,734.81 crore. The 52-week high of the stock was at ₹1,795.5 per share, and the 52-week low of the stock was at ₹740.05 per share.   Follow Stock Market LIVE Updates Today

Newgen Software Technologies Q1 results 

The company on Thursday, after market hours, reported a net profit of ₹49.7 crore for Q1FY26, up 4.5 per cent, from ₹47.6 crore a year ago. However, sequentially, the net profit declined 54 per cent from ₹108 crore in Q4.

 

 

The company's revenue from operations increased 1.9 per cent to ₹320.6 crore as compared to ₹314.7 crore a year ago and ₹429.89 crore in Q4. 

Should you buy or sell Newgen Software Technologies shares? 

ICICI Securities has maintained a 'Reduce' rating on the stock and has cut the target to ₹970 per share from ₹1,020.

 

Newgen reported a sharp miss against ICICI Securities estimates on revenue, with growth of 1.9 per cent Y-o-Y – much lower than the company’s aspiration of 20 per cent year-on-year (Y-o-Y) growth. 

 

Revenue was impacted by lower large-license deals across its key vertical of banking (-5.2 per cent Y-o-Y) and key markets of India (3 per cent Y-o-Y) and the Middle East (0.3 per cent Y-o-Y). Demand was impacted by macro headwinds in the Middle East and a pull-back in retail lending in India. 

 

The brokerage has cut earnings per share (EPS) estimates by 4-5 per cent led by a cut in revenue estimates. We model 7 per cent/17 per cent/15 per cent revenue growth in Rupee terms in FY26/27/28.  ALSO READ | Indian Hotels, ITC rally upto 3% in weak market; brokerages see more upside

About Newgen Software 

Newgen is the leading provider of a unified digital transformation platform with native process automation, content services, and communication management capabilities. Globally, enterprises rely on Newgen’s industry-recognised low-code application platform to develop and deploy complex, content-driven, and customer-engaging business applications on the cloud. From onboarding to service requests, lending to underwriting, and for many more use cases across industries. Newgen unlocks simple with speed and agility.