Synopsis:
Newgen Software Technologies jumped sharply after securing Rs 65 crore in orders in a day, including Rs 21.24 crore from Kshema General Insurance for its Policy Administration System and Rs 44 crore from Tata Consultancy Services, N.V., Belgium, for a cloud-based enterprise records management platform.
The shares of this leading software product development services provider are in focus after it secured key orders from a domestic entity and another from an international client. In this article, we will dive more into the details.
With a market capitalization of Rs 13,031 crore, the shares of Newgen Software Technologies Ltd made a day’s high of Rs 937 per share, up 7 percent from its previous day’s closing price of Rs 874.45 per share. Over the past five years, the stock has delivered a robust return of 721 percent, outperforming NIFTY 50’s return of only 127 percent.
About the Order
Newgen Software Technologies, through a stock exchange filing, announced that it has secured a major purchase order from Kshema General Insurance Limited for the implementation of its Policy Administration System. The total value of the order is Rs 21.24 crores (including taxes).
The deal covers services such as software licensing, complete implementation, and annual support services, ensuring seamless integration and long-term operational efficiency for the customer.
It’s a domestic project, with Kshema General Insurance Limited located in India, and it stands as a testament to the increasing use of Newgen’s solutions in the Indian insurance sector.
The agreement has to be executed within five years, during which Newgen will offer its knowledge and support to facilitate the smooth running and continued performance of the system.
Additionally, Newgen Software Technologies (UK) Limited, a wholly owned subsidiary of Newgen Software Technologies, has signed a Master Service Agreement with Tata Consultancy Services N.V., Belgium.
The agreement, valued at €4.22 million (Rs 44 crore), covers cloud hosting, software licensing, and implementation services for a modern cloud-based enterprise records management platform and will be executed over five years.
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Financial Highlights
The company’s revenue for Q1 FY26 came in at Rs 321 crore, up by 2 percent from Rs 315 crore in the same quarter last year. However, on a sequential basis, revenue declined by 25 percent from Rs 430 crore in Q4 FY25.
Coming to its profitability, the company reported a net profit growth of 4 percent to Rs 50 crore in Q1 FY26 as compared to Rs 48 crore in Q1 FY25. However, on a QoQ basis, it recorded a sharp decline of 54 percent from Rs 108 crore.
The company has delivered a ROE and ROCE of 22.50 percent and 27.97 percent respectively, and is currently trading at a high P/E of 40.95x as compared to its industry average of 29.96x.
Newgen Software Technologies provides digital transformation solutions. It offers products for enterprise content management, business process management, and customer communication.
The company also provides tools for case management, digital automation, hyperautomation, and intelligent document processing. Newgen serves industries like banking, insurance, healthcare, government, telecom, and more across India, the US, Europe, the Middle East, Africa, and Asia-Pacific.
Written by Satyajeet Mukherjee
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