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.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Good · 70/100Rev +11% YoY · PAT +26% YoY · margin expansion · operating leverage
| 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.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
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.
Q1 FY'27 Revenue by Vertical
Latest issuer-disclosed distribution across 4 reported categories.
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.
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.
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
Management accountability
What management said, and what results must prove
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.
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.
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%).
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.
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.
Trend score and candlestick chart
42NeutralSMA20 -2.4% / mo · MACD −
Technical chart
NEWGENdaily · 1Y · AUTO+12.2%Daily technical trend read
Bearish setupTrend is weak — long-term trend down. RSI 48.
- Price below SMA200 (long-term downtrend) — short-term bounces likely countertrend.
- SMA20 falling (~2.5% over last month) — short-term momentum negative.
- RSI(14) at 48 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 50% off 52W high · 31% 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.
Relative Strength & Trend Stage
- 47.3% below the 52-week closing high after prior strength.
- The 30-week proxy has stalled (-2.9% over 20 sessions).
- Price has not yet confirmed a full Stage 4 downtrend.
Valuation & score drivers
U-Score 61 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 61 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 29.7%.
- Balance sheet contributes 11/15 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.
- Growth is weaker at 17/25; verify the latest quarterly trend.
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.
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.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: 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.
High Trust Lite: Promoter pledge is zero. Key concern: 1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 87th pctile, median 69 · Large: 77th pctile, median 73
136 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead 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.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 1.2%.
- ▸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.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 21.80
- P/B
- 4.20
- EV/EBITDA
- 16.56
- Market Cap
- 7479.00Cr
Profitability
- ROE
- 19.60%
- ROCE
- 25.00%
- ROA
- 12.86%
- Dividend Y
- 1.14%
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
- 1.16%
- FCF Positive Y
- 10/5
- OCF
- 232.00 Cr
- EPS TTM
- 22.06
Shareholding
- Promoter Hold
- 53.45%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 19%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in IT, ranked by similarity
Peers
Business-comparable names in IT, ranked by similarity
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.