Earnings Review
Newgen consol Q1 PAT falls 40% on quarter, sales down 21%
This story was originally published at 15:40 IST on 16 July 2026
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By Diksha Singh
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--Newgen Software Apr-Jun consol net profit INR 628.21 mln
--Newgen Software Apr-Jun consol sales INR 3.57 bln
--Newgen Software Q1 consol PAT INR 628.21 mln vs INR 1.06 bln qtr ago
--Newgen Software Q1 consol sales INR 3.57 bln vs INR 4.53 bln qtr ago
--Newgen Software Q1 Europe, West Asia, Africa sales INR 1.14 bln, dn 17% QoQ
--Newgen Software shares fall; Apr-Jun consol net profit declines 41% on qtr
--Newgen Software Q1 India sales INR 956.11 mln, down 23% on qtr
--Newgen Software Q1 US sales INR 915.10 mln, down nearly 14% on qtr
--Newgen Software Apr-Jun consol EBITDA INR 559 mln vs INR 450 mln yr ago
--Newgen Software Apr-Jun consol EBITDA margin 15.7% vs 14.0% yr ago
--Newgen Software: Added 10 enterprise customers in Apr-Jun
MUMBAI – Newgen Software Technologies Ltd. reported weak earnings for the June quarter, primarily due to a fall in revenue from operations. The company's consolidated net profit for the June quarter was INR 628.2 million, down 41% sequentially from INR 1.06 billion. Consolidated revenue from operations fell over 21% on quarter to INR 3.57 billion. On a year-on-year basis, the company's net profit grew 26.4% and revenue was up 11.2%.
Newgen's other income rose over eight times to INR 362.73 million in the June quarter from INR 43.49 million in the March quarter. It increased 23.4% on year from INR 293.87 million.
The company reported Europe, West Asia, and Africa sales of INR 1.14 billion, down 17% on quarter. Its India sales for the June quarter were at INR 956.11 million, down 23% on quarter. Revenue from the US fell nearly 14% sequentially to INR 915.10 million.
Newgen reported consolidated earnings before interest, tax, depreciation, and amortisation of INR 559 million, and an EBITDA margin of 15.7%.
Its annuity revenue for the June quarter grew 14% on year to INR 2.54 billion. Subscription revenue was at INR 1.46 billion, up 21% on year. The software as a service segment also recorded a 40% on-year growth.
"Our SaaS and License Subscription revenues grew at 40% YoY to 60 crore, reflecting the continued strength of our recurring revenue business," Virender Jeet, chief executive officer at Newgen Software Technologies said. During the quarter, we added 10 new customer logos, secured strategic wins across banking, insurance, and enterprise content management. We remain focused on disciplined execution, customer success, and delivering innovations that help enterprises accelerate their transformation journeys."
Total expenditure, including finance cost, for the quarter was flat at INR 3.10 billion. Finance cost fell 12.6% on quarter to INR 8.61 million.
The company has secured projects across banking, insurance, and enterprise content management, including a core insurance platform transformation project for a customer in Kuwait worth INR 267 million. It has received an order for deploying a retail loan origination solution from a Philippines-based company, worth INR 162 million. At 1511 IST, shares of Newgen Software traded at INR 542.75, down 2.7% from Wednesday, after the company detailed its earnings. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Pankaj Aher
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