The company posted a 41% sequential decline in net profit to ₹63 crore, compared with ₹106 crore in the March quarter.
Revenue fell 21% quarter-on-quarter to ₹357 crore from ₹453 crore, while EBIT dropped 64% to ₹55 crore from ₹152 crore. EBIT margin also narrowed sharply to 15.4%, against 33.6% in the previous quarter.
Following the earnings announcement, Newgen Software shares came under pressure, falling as much as 8% from the day’s high. As of 1:50 pm, the stock was trading 3.4% lower at ₹538.75 on the NSE, after touching an intraday high of ₹586.90.
Despite the softer quarter, the company has previously indicated that it expects growth to improve in FY27 after a slowdown in large licence deals weighed on performance last year.
Speaking to CNBC-TV18 in May, Managing Director and CEO Virender Jeet said the company expects to return to its historical growth trajectory after FY26 revenue growth slowed to 6%.
Jeet said business momentum is expected to improve as conditions stabilise in the Middle East, a region that contributes nearly one-third of Newgen’s revenue. He also expects artificial intelligence-led products and operational efficiencies to support both margins and deal wins.
According to the company, nearly half of its future use cases are expected to have AI as a significant component. Newgen is embedding agentic AI capabilities into its Newgen ONE platform and has been witnessing larger deal sizes as customers increasingly adopt AI-driven solutions.
The company also said productivity gains and AI-led efficiencies helped optimise manpower costs during FY26 while allowing it to continue investing in research and development. Jeet added that profitability could improve meaningfully if revenue growth returns to the high-teen range over the next two years.
Newgen Software Technologies develops enterprise digital transformation platforms that help organisations automate workflows, manage content, digitise customer onboarding and streamline business processes across banking, insurance, government, healthcare and other sectors.
