Announcement
Announcement under Regulation 30 (LODR)-Award_of_Order_Receipt_of_Order 16 Oct - UK subsidiary won £1.63 million document management contract with Just Retirement Management Services for 3.5 years.
Source: Bse
Newgen Software Technologies Limited (NEWGEN)
Large CapIT stocks · Large cap · NSE
Newgen Software Technologies is a 34-year-old IT company with a presence in 79 countries and ~500 active customers. It provides an enterprise orchestration layer, NewgenONE, designed to coordinate human expertise, enterprise systems, business processes, and AI agents. It serves Banking & FS, Insurance, Healthcare, and Government verticals.
Data qualityFresh enough for analysisQuote updated 19 Oct, 03:31 pm ISTDetails
Quote19 Oct, 03:31 pm IST
Base fundamentals15 Oct 2026 · screener
Latest result16 Jul, 12:51 pm IST
Score20 Oct, 04:30 am IST · v4.3-runtime-valuation
Tags02 May 2026
Coverage14/14 · 100%
Valuation2026-07-20 · Rf 6.8% · IT P/E 21.4 (n=204)
Technical timing lens
Trend score and candlestick chart
62BullishSMA20 -8.6% / mo · MACD + · near 52W low · sector +14.5pp vs Nifty 500 (3M)
Stock trend: 37
Sector RS: 100
Sector 3M: +8.9% vs Nifty 500 -5.6%
IT FPI tailwindNot confirmed
Latest mapped FPI equity flow was not positive. View sector evidence
Technical chart
NEWGEND candles · FIT view+3.5%Latest close ₹479.10 on 2026-10-19
Bar
-2.8%
RSI
49
MACD hist
5.05
52W pos
12%
2026-10-19O ₹493.15H ₹495.75L ₹477.50C ₹479.10Vol 4.2L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
NEWGENNifty ITNifty 500
- NEWGEN
- -14.4%
- Nifty 500
- -5.6%
- Nifty IT
- +8.1%
- Vs Nifty 500
- -8.8 pp
Chart stats
19 Oct 2026- From 52W high
- -54.0%
- 52W range position
- 12%
- ATR (14)
- 3.7%
- Volume vs 20D
- 0.49x
- Avg traded value
- ₹40.4 Cr
- 20D price channel
- ₹439.1 - ₹514.1
₹1,042
₹401.1 - ₹1,042
₹17.7
Latest completed session
20-session average
33.4% annualized volatility
Research snapshot
What the evidence says now
Investable fundamentals, management evidence is still limited to a financial-only Trust Lite signal, price trend is neutral, and recent execution is weak.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · UNDERVALUED63
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Good70
Revenue +11.2% · PAT +26.0% YoY
Technical
Bullish62
Price trend and sector-relative-strength timing.
Valuation
Legacy model+32.3%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
Limited evidence80
Financial-only signal; management claim evidence is not sufficient yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Jun 2026
Good · 70/100Rev +11% YoY · PAT +26% YoY · margin expansion · operating leverage
Filed 16 Jul 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹357 Cr | +11.2% | -21.2% |
| EBITDA | ₹56 Cr | +24.4% | -63.2% |
| Operating margin | 16.0% | +200 bps | -1800 bps |
| PAT | ₹63 Cr | +26.0% | -40.6% |
| PAT margin | 17.6% | +207 bps | -575 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 19.80
- P/B
- 3.81
- EV/EBITDA
- 15.04
- Market Cap
- 6789.00Cr
Profitability
- ROE
- 19.60%
- ROCE
- 25.00%
- ROA
- 12.86%
- Dividend Y
- 1.26%
Growth (CAGR)
- Revenue 5Y
- 19.00%
- EPS 5Y
- 21.00%
- Revenue 3Y
- 17.00%
- EPS 3Y
- 22.00%
Balance Sheet
- Debt/Equity
- 0.02
- Interest Coverage
- 83.40×
- Altman Z
- 8.42
- Book Value
- 125.00
Cash Flow
- FCF Yield
- 1.28%
- FCF Positive Y
- 10/5
- OCF
- 232.00 Cr
- EPS TTM
- 22.06
Shareholding
- Promoter Hold
- 53.45%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 12%
Financial History
Updated 20/10/2026
Revenue
₹ CrLatest: 1,574+5.9% vs prev
Net Profit
₹ CrLatest: 301-4.4% vs prev
Return on Equity
%Latest: 16.9-18.5% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend down. RSI 49. Wait for confirmation.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~9.4% over last month) — short-term momentum negative.
- RSI(14) at 49 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 54% off 52W high · 19% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
6
RS percentile
Stage 1 Base / Transition
1M return
-3.7%
3M return
-14.4%
6M return
+0.9%
1Y return
-51.9%
RS 1D
-7
RS 20D
-7
Sector rank
#2
Industry rank
#5
Stage evidence
- Price is within 2.0% of the 30-week proxy.
- The 30-week proxy changed -0.2% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
50-DMA
price below
200-DMA
price below
Sector
leading
Industry
leading
Relative-strength line vs Nifty 500 (base 100)
262 observations
19 Oct 2026Value 55.56-1.99%
RS vs Nifty 50056
Valuation & peers
U-Score 63 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 63 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Financial Turnaround
Fundamental score breakdown
U band · UNDERVALUEDValuation7/30
Growth19/25
Quality13/20
Balance Sheet11/15
Cash Flow7/10
Piotroski
8/9 (+5)
Penalties
1
Raw sum
63
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
63/100 · legacy band UNDERVALUED
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 32.3%.
- Growth contributes 19/25 to the score.
Main drags
- Valuation is weaker at 7/30; verify the latest quarterly trend.
- Quality is weaker at 13/20; verify the latest quarterly trend.
- Cash flow is weaker at 7/10; verify the latest quarterly trend.
Sector valuation model
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Primary lens
PE and EV/EBITDA relative to revenue growth, margins, and cash conversion.
Secondary checks
Deal pipeline, attrition, dollar revenue growth, FCF yield.
Main risk check
Low PE can reflect weak growth or margin pressure.
PE
19.8
PB
3.8
EV/EBITDA
15.0
ROE
19.6%
ROCE
25.0%
FCF Yield
1.3%
Debt/Equity
0.0
MoS
+32.3%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 20 Oct 2026
v4.3-runtime-valuation
Final score
63
Previous: 63
Legacy U-Score band
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
+32.3%
Previous: +31.2%
Score history
12 stored score snapshots. Latest stored move: +0 points.
20 Oct 2026
v4.3-runtime-valuation
63
63
63
63
63
63
63
63
63
63
63
63
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
₹249.09
-92.3% MoS
Growth-justified P/E
32.1
Growth-justified Value
₹708.13
+32.3% MoS
PEG
0.93
Comparable companies
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
SONATSOFTW
Large
Sonata Software Limited
IT Services / Digital
match 167
66
13.8
28.2%
+54%
UNDERVALUED
MAPMYINDIA
Large
C.E. Info Systems Limited
IT Services / Digital
match 163
38
36.7
12.0%
-10%
WATCHLIST
SHILCTECH
Small
Shilchar Technologies Limited
IT Services / Digital
match 158
59
33.6
37.8%
-2%
FAIR VALUE
MPSLTD
Small
MPS Limited
IT Services / Digital
match 158
62
23.3
29.7%
+29%
UNDERVALUED
DATAMATICS
Small
Datamatics Global Services Limited
IT Services / Digital
match 158
55
18.1
16.0%
+33%
FAIR VALUE
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-07-17T07:15:34.210Z
Management commentary snapshot
Newgen Software reported robust Q1 FY'27 results with revenue from operations growing 11.2% YoY to INR 3,567 Mn. EBITDA increased 24.2% YoY to INR 559 Mn, expanding margins to 15.7%. PAT (excl. exceptional items) rose 26.3% YoY to INR 628 Mn, with margins at 17.6%. Growth was broad-based across geographies.
The company demonstrated strong execution in Q1 FY'27, with double-digit growth in revenue and profits, coupled with margin expansion. Geographic diversification and new customer additions indicate healthy demand for its enterprise AI and orchestration platforms, reinforcing its market position.
Current business mix
Q1 FY'27 Revenue by Vertical
Latest issuer-disclosed distribution across 4 reported categories.
Banking63.0%
Insurance & Healthcare22.0%
Others9.0%
Govt.6.0%
Growth engines
AI-powered Platform
NewgenONE platform unifies six critical components for traceable, compliant, and accountable outcomes at scale, embedding AI.
Geographic Expansion
Broad-based geographic growth, led by Americas (27% YoY), APAC (12% YoY), and EMEA (10% YoY) in Q1 FY'27.
New Customer Acquisition
Added 10 new enterprise customers during Q1 FY'27, strengthening global customer base across priority industries.
Annuity Revenue Model
Large annuity revenue streams (71% of Q1 FY'27 revenue) provide stability and recurring income.
Tailwinds
International Market Demand
Healthy demand across key international markets, driving broad-based geographic revenue growth in Q1 FY'27.
Industry Recognition
Consistently recognized as a 'Leader' or 'Strong Performer' by Forrester and Gartner in various categories.
Leadership Transition
New CEO and CGO appointed effective August 1, 2026, reflecting commitment to scaling the next phase of growth.
Risk radar
Debtor Days
Debtor days increased from 125 in Q1 FY'26 to 145 in Q1 FY'27, indicating potential working capital strain.
Competition
Risks include competition (both domestic and international) and the ability to manage new business opportunities.
Talent Retention
Ability to attract and retain highly skilled professionals is identified as a risk.
Project Execution
Time and cost overruns on projects are a stated risk.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare YOY
The company explicitly states its business is seasonal, with proportionately higher revenues and debtor days in the year-end period (March), making year-on-year comparisons more appropriate for performance evaluation.
Sector KPIs management disclosed
Revenue from Operations
INR 3,567 Mn in Q1 FY'27, up 11.2% YoY.
EBITDA
INR 559 Mn in Q1 FY'27, up 24.2% YoY, with margins expanding to 15.7%.
Profit After Tax (excl. exceptional items)
INR 628 Mn in Q1 FY'27, up 26.3% YoY, with margins at 17.6%.
Annuity Revenue Contribution
71% of Q1 FY'27 revenues (SaaS 17%, ATS/AMC 24%, Support 30%).
Management forward view
Focus on Growth Scaling
Management is committed to scaling the next phase of growth, with new CEO and CGO appointments effective August 1, 2026.
Strategic Partnerships
The new Chief Growth Officer is tasked with championing growth through strategic partnerships, market expansion, and ecosystem development.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Revenue Growth | 11.2% YoY in Q1 FY'27. | Watch for sustained double-digit growth rates across key geographies. |
| EBITDA Margin | 15.7% in Q1 FY'27. | Watch for continued margin expansion or stability, indicating operational efficiency. |
| New Customer Wins | 10 new enterprise customers in Q1 FY'27. | Watch for consistent additions of new logos, especially in priority industries. |
| Debtor Days | 145 days in Q1 FY'27. | Watch for reduction or stabilization of debtor days to improve working capital efficiency. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
80Limited evidence · low confidenceTrust Lite
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Limited evidence: Claim history is still being built. It ranks around the 90th percentile of the scored universe and 87th percentile within IT. Main check: results consistency is weak at 50/100.
This is a financial-behaviour screen, not a claim-tested management reliability verdict.
Computed 20 Oct 2026
management-trust-v1
145 docs text-extracted · 62 concalls text-extracted
Score band
Limited evidence
Financial behaviour is scored, but management claims do not yet have enough outcome checks.
Relative rank
90th percentile
overall median 67 · IT: 87th pctile, median 69 · Large: 77th pctile, median 73
Evidence depth
Financial-only
145 documents have extracted text, but claim history is not strong enough yet.
Claim delivery
Outcome history still building
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Limited evidence · low confidenceWhat it measures
Reliability of management and financial delivery, using financial behaviour only.
Confidence
Treat this as an early read until more concalls and outcomes are matched.
Investor use
Can support position sizing if valuation and trend also agree.
Read Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Promoter
78
strong · holding, pledge, alignment
Cash flow
77
strong · profit to cash conversion
Balance sheet
96
strong · leverage and solvency
Discipline
90
strong · capital discipline
Results
50
watch · quarterly consistency
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.3%.
- ▸10 years of positive FCF.
- ▸Debt/equity is 0.02.
Trust risks
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
- ▸OPM spread across recent quarters is 20%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Continue researching Newgen Software Technologies Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
AnnouncementSep 2026
Sep 2026 · Announcement under Regulation 30 (LODR)-Award_of_Order_Receipt_of_Order 21 Sep - Newgen won Qatar contract worth US$1.79 million (₹17.14 crore) on 21 September 2026.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Award_of_Order_Receipt_of_Order 28 Sep - Subsidiary NSI won 3-year US health insurer contract for NewgenONE CAG solution worth $5.475 million.
Source: Bse
AnnouncementAug 2026
Aug 2026 · Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 4 Aug - Newgen will meet investors at Avendus Spark INDX-Asia Edition 2026 in Hong Kong and Singapore on 12/14 August 2026.
Source: Bse
AnnouncementAug 2026
Aug 2026 · Announcement under Regulation 30 (LODR)-Change in Management 2 Jul - Board appoints Tarun Nandwani CEO from Aug 1, 2026, Pramod Kumar CGO, and names T.S. Varadarajan Vice Chairman.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 24 Aug - Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, this is to inform you that the official(s) of the Company will participate and ....
Source: Bse
Concall transcriptJul 2026
Jul 2026 · Transcript
Source: Bse
Investor presentationJul 2026
Jul 2026 · PPT
Source: Bse
AnnouncementJul 2026
Jul 2026 · Announcement under Regulation 30 (LODR)-Newspaper Publication 17 Jul - Enlosed Newspaper Advertisement dated 17th July 2026 in relation to Unaudited standalone and Consolidated Financial Results for the quarter ended June 30, 2026
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Award_of_Order_Receipt_of_Order 30 Jun - Newgen won a $1.71 million Retail Loan Origination Solution order in the Philippines for 5 years.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Newspaper Publication 18 Jun
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Allotment of ESOP / ESPS 29 May - Enclosed Outcome of Board Meeting to consider and approve allotment of Equity Shares to Newgen ESOP Trust and Newgen RSU trust.
Source: Bse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.