Synopsis: Newgen Software reported a steady performance in Q4 FY26 with revenue growing 2.9% YoY to Rs. 457 crore. While the company maintained strong operating margins, net profit saw a slight decline on a yearly basis, reflecting cost pressures and normalization in earnings.
Newgen Software Technologies is a leading provider of digital transformation platforms, offering solutions in enterprise content management, workflow automation, and customer communication management. The company has a strong presence across global markets, including the US, Europe, and Asia, catering to industries such as banking, insurance, healthcare, and government.
Newgen Software Technologies is currently trading at Rs. 512, with a market capitalization of Rs. 7,290 crore and stock shows upward movement of 6.40% compared to previous close of Rs. 480. The stock has touched a 52-week high of Rs. 1,379 and a low of Rs. 401. It is trading at a P/E ratio of 22.4, while the book value stands at Rs. 125.
The company offers a dividend yield of 0.96% and maintains strong return ratios with ROCE at 25.8% and ROE at 20.2%, indicating efficient capital utilization and consistent profitability.
In Q4 FY26, the company reported revenue of Rs. 457 crore, marking a 2.9% YoY growth compared to Rs. 444 crore in Q4 FY25. On a QoQ basis, revenue grew strongly from Rs. 420 crore in Q3 FY26, reflecting improved business momentum.
Operating profit stood at Rs. 152 crore, compared to Rs. 137 crore in Q4 FY25, with operating margins improving to 33.6% from around 31.9% YoY. Profit Before Tax came in at Rs. 137.8 crore, slightly lower than Rs. 141.3 crore reported in the same quarter last year. Net profit stood at Rs. 106 crore, showing a marginal decline of 1.9% YoY compared to Rs. 108 crore in Q4 FY25.
On a quarter-on-quarter basis, Newgen Software showed strong improvement in performance. Revenue increased from Rs. 420 crore in Q3 FY26 to Rs. 457 crore in Q4 FY26. Operating profit saw a sharp rise from Rs. 106 crore to Rs. 152 crore, leading to margin expansion from 26.5% to 33.6%. Profit Before Tax also improved significantly from Rs. 80 crore to Rs. 137.8 crore. Net profit increased from Rs. 62.8 crore in Q3 FY26 to Rs. 106 crore in Q4 FY26.
Newgen Software delivered a steady performance in FY26 with consistent revenue growth and strong margin profile. The company’s increasing share of annuity revenue and expanding presence in global markets provide long-term stability.
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