Newgen Software Q1 EBITDA, margin fall; shares decline 6%

The IT firm’s revenue from operations for the quarter under review stood at ₹321 crore as compared to ₹315 crore in Q1 FY25, marking an increase of 2% year-on-year (YoY).

Newgen’s earnings before interest, tax, depreciation, and amortisation (EBITDA) for Q1 FY26, however, slipped 6% to ₹45 crore in contrast to ₹48 crore in the corresponding quarter of the previous fiscal year.

The margin for the quarter declined 100 basis points YoY to 14% from 15% in Q1 FY25.

After the posting of the earnings, shares of Newgen Software tumbled 6% to trade at ₹1,025.90 apiece on the National Stock Exchange.

The company’s employee benefit expenses during the quarter rose to ₹181.5 crore from ₹174 crore last year.

On a YoY basis, Newgen’s India business revenue advanced marginally at ₹95.34 crore from ₹92.58 crore. However, sequentially the firm saw a decline from ₹133.63 crore.

European business revenue also declined to ₹103.4 crore from ₹138.56 crore in the previous quarter. Meanwhile, the US business revenue remained flat at ₹72 crore from last year but declined when compared to the March quarter, which was at ₹88.46 crore.

Over the last five trading days, shares of Newgen Software have slumped over 8%. For a month’s period, it has declined over 16%.

Since January 17, 2025, which is six months, the stock has fallen 35.2%. Year-to-date, it has tanked almost 40%.

The company’s market capitalisation stands at ₹14,513.75 crore.

Shares of the firm had touched their one-year high of ₹1,798.90 apiece on January 15, 2025, while their 52-week low of ₹758.20 was hit on April 7, 2025.