Newgen Software Technologies reported its Q1 FY26 results (quarter ended June 30, 2025), with a sharp sequential decline but modest year-on-year growth in net profit and revenue.

For the quarter, revenue from operations stood at ₹321 crore, down 25% QoQ from ₹430 crore in Q4 FY25, but up about 2% YoY from ₹315 crore in Q1 FY25.

Total income came in at ₹350 crore, marking a 21% drop QoQ from ₹440 crore but higher than ₹338 crore YoY.

EBITDA for Q1 was reported at ₹45 crore, significantly lower than ₹137 crore in Q4 FY25, with EBITDA margin contracting to 14.03%, compared to 31.9% QoQ.

Profit before tax (PBT) fell to ₹64 crore, compared to ₹141 crore in Q4, a decline of approximately 55% QoQ.

After tax expenses of ₹14.38 crore, net profit for the quarter stood at ₹50 crore, down 54% QoQ from ₹108 crore in Q4 FY25 but up 4% YoY compared to ₹48 crore in Q1 FY25.

Total comprehensive income for the period was ₹52.74 crore, lower than ₹110.26 crore QoQ but higher YoY.

The results reflect a challenging quarter sequentially for Newgen due to lower profitability and margins, although on a year-on-year basis, the company managed to deliver modest growth in both revenue and net profit.