Newgen Software Q1 performance
Newgen Software reported a consolidated net profit of Rs 49.72 crore for the April–June quarter, marking a modest 4.5% year-on-year increase from Rs 47.57 crore. However, on a sequential basis, profit fell sharply by 54% from Rs 108 crore in Q4FY25.
Revenue from operations grew just 2% YoY to Rs 321 crore but dropped over 25% compared to Rs 430 crore in the previous quarter.
Also Read: Emami, Tube Investment among 10 mid-cap stocks analysts expect to gain up to 40%
The company’s operating performance also weakened. EBITDA declined 6% YoY to Rs 45 crore, while EBITDA margin narrowed to 14% from 15% a year ago. The decline was primarily attributed to higher employee benefit expenses and increased finance costs.
Among key markets, revenue from the India business showed a slight YoY increase but declined sharply from the March quarter. Revenue from Europe fell to Rs 103.4 crore from Rs 138.56 crore QoQ.APAC revenue remained flat YoY at Rs 49.9 crore but declined from Rs 69.2 crore in Q4FY25. Similarly, revenue from the US market was flat YoY but lower sequentially.Also Read: 9 undervalued mid-cap stocks with upside potential of up to 23%
Newgen Software share price target According to Trendlyne, the average target price for Newgen Software is Rs 1,186, indicating a potential upside of nearly 22% from current levels. Of the four analysts tracking the stock, the consensus rating is ‘Buy’.
Also Read: SBI, Federal Bank among 11 banks that saw NPA improvement in Q4
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
