Newgen Software Q3 net profit falls 29% YoY to ₹63 crore; shares plunge 16% to 52-week low

In the corresponding period of the previous fiscal year, it had clocked a profit of ₹89 crore, dragged by unallocated expenditure, including the impact of the labour codes amounting to ₹35.1 crore (or ₹3,509.78 lakh), it said in a regulatory filing.

On a sequential basis, its profit fell 23.15% quarter-on-quarter (QoQ) from ₹81.74 crore in the September quarter of the current fiscal year.

Its revenue from operations jumped 5.03% annually to ₹400.28 crore during the quarter under review, compared to ₹381.12 crore in the December quarter of the 2024-25 financial year (Q3FY25). On a QoQ basis, its revenue mostly stayed flat.

Geographically speaking, its revenue from the India vertical stood at ₹115.41 crore, reflecting a 5.41% YoY and 2.05% QoQ fall from ₹122.01 crore and ₹117.83 crore, respectively. India comprised 29% of its total revenue.

The New Delhi-headquartered company’s Europe, Middle East, and Africa (EMEA) revenue slumped by 3.96% annually and 0.7% sequentially to ₹123.66 crore. It made up 31% of its total revenue.

However, its revenue from the Asia-Pacific region (APAC) was at ₹65.32 crore in Q3FY26, marking a 7.42% YoY and 2.95% QoQ growth. It comprised 16% of its revenue.

However, its US segment revenue increased 20.83% annually to ₹95.88 crore, from ₹79.35 crore in the third quarter of FY25. On a sequential basis, it rose % QoQ from ₹94.98 crore in Q2FY26. It made up 24% of the company’s total revenue.

At an operational level, its adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation), also known as operating profit, slipped 1.9% YoY to ₹106.2 crore for the reporting quarter, as against ₹108.3 crore in Q3FY25.

Its EBITDA margin contracted to 26.5% in the December quarter of FY26, in comparison to 28.4% in the same period of the previous fiscal year.

Newgen Software stock performance

Shares of Newgen Software Technologies plunged as much as 16% to a 52-week low of ₹617.55 per unit on the National Stock Exchange (NSE) on Tuesday, after announcing its earnings for the December FY26 quarter.

The stock was trading 13.96% higher at ₹632.55 apiece at around 2:44 pm.

Newgen Software Technologies has a total market capitalisation of ₹9,005.16 crore, as of January 20, 2025, according to data on the NSE.