Shares of Newgen Software Technologies Ltd slipped nearly 5% to around ₹1,040 on Wednesday, following its Q1 FY26 results that revealed a steep sequential drop in profitability despite modest year-on-year growth.
For the quarter ended June 30, 2025, Newgen reported revenue from operations of ₹321 crore, down 25% QoQ from ₹430 crore in Q4 FY25 but up about 2% YoY from ₹315 crore in Q1 FY25. Total income for the period stood at ₹350 crore, lower than ₹440 crore QoQ but higher than ₹338 crore YoY.
EBITDA fell sharply to ₹45 crore from ₹137 crore in the previous quarter, with margins contracting to 14.03% from 31.9% QoQ.
Profit before tax (PBT) declined to ₹64 crore, down 55% QoQ, and net profit came in at ₹50 crore, plunging 54% QoQ from ₹108 crore in Q4 FY25 but rising 4% YoY compared to ₹48 crore in Q1 FY25.
The sharp sequential decline in profitability and margins weighed on investor sentiment, dragging the stock lower even as the company maintained some year-on-year growth in revenue and profit.
At the time of reporting, Newgen shares were trading down about 4.7%, making it one of the day’s top losers.
