New Delhi–Newgen Software Technologies reported a sharp sequential decline in first-quarter earnings, with net profit falling 40.9% as revenue and operating profit weakened.
The company’s net profit dropped to 62.8 crore rupees in the first quarter of fiscal 2027 from 106 crore rupees in the previous quarter, according to a regulatory filing.
Revenue declined 21.2% sequentially to 357 crore rupees from 453 crore rupees. Earnings before interest and taxes fell 67.2% to 46.8 crore rupees, compared with 143 crore rupees in the fourth quarter of fiscal 2026.
The New Delhi-based software company’s EBIT margin narrowed to 13.1% from 31.5% in the previous quarter, a contraction of 1,840 basis points.
Newgen posted stronger results on a year-over-year basis, with revenue rising 11% amid growth across its major geographic markets.
Earnings before interest, taxes, depreciation and amortization increased 24% from a year earlier, while the EBITDA margin expanded to 15.7% from 14%.
Profit after tax rose 26% year over year, with the margin improving to 17.6% from 15.5%.
“Our SaaS and License Subscription revenues grew at 40 per cent 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,” said Virender Jeet, Chief Executive Officer, Newgen Software Technologies Ltd.
The Americas led the company’s geographic growth, with revenue increasing 27% year over year. Revenue from the Asia-Pacific region rose 12%, while Europe, the Middle East and Africa recorded 10% growth.
Newgen added 10 enterprise customers during the quarter, expanding its global client base across key industries.
Shares of Newgen closed 2.99% lower at 541 rupees on the National Stock Exchange following the earnings announcement. (Source: IANS)
