IT stock in focus after receiving contract worth ₹14 Cr from Malaysian Bank

Synopsis:
The shares of this small-cap IT company were in the news today after it received a contract worth Rs 14 crore to provide project management services relating to ECM. 

The shares of this company, which is a global software company and is engaged in the business of software product development, including designing and delivering end-to-end software solutions, had its shares in the news today as the company announced its bagging of a contract for the end-to-end project management services in relation to ECM. 

With a market cap of Rs 12,543 Crore, the shares of Newgen Software Technologies Ltd Gave a closing at Rs 881. The shares have given a return of 550% in the last 5 years and are trading at a PE of 38.2, whereas their industry PE is 25.3

About the order

Newgen, through its Singapore subsidiary, has won a new international contract after receiving a Letter of Award from a leading Malaysian bank. The project is focused on implementing and managing an Enterprise Content Management (ECM) system and is valued at RM 6.46 million, which comes to Rs 13.96 crore. This makes it a meaningful addition to Newgen’s growing global project portfolio.

Under this contract, Newgen will handle the complete deployment of the ECM platform, along with full project management responsibilities. The work also includes ongoing support and maintenance, ensuring the system runs smoothly throughout the engagement.

The agreement runs for five years, giving the company steady visibility on long-term revenue from this client. Newgen has also confirmed that the deal involves no related-party connections and was awarded through a standard procurement process, underscoring the transparency and competitiveness of the win.

Financials and others

The revenue from operations is at Rs 401 crore in Q2 FY26 versus Rs 361 crore in Q2 FY25, which is an increase of about 11 percent YoY. Similarly, the net profit has increased by about 17% when we compare the Q2 FY25 profit of Rs 70 crore with the Q2 FY26 profit of Rs 82 crore. 

Newgen has had an impressive run of global wins, reflecting the growing trust major organisations place in its technology, with the recent wins involving a £3 million project in the UK to power enterprise content and communication management and followed it with a €4.2 million, five-year deal in Europe to modernise a large retailer’s cloud-based records management system. Its reach extended to Africa too, with a $5.6 million, five-year contract in Ghana for a loan management platform.

In the Americas, Newgen secured a $1.6 million, two-year ECM deal with a bank and a $2.6 million, three-year contract with a leading US healthcare provider for software and cloud services. On the domestic front, it continued to strengthen its presence with an Rs 21.24 crore, five-year contract from a major general insurer and an Rs 8.9 crore multi-year BPM implementation deal under the Pan 2.0 initiative. Altogether, these wins highlight Newgen’s growing global momentum and its ability to deliver meaningful digital transformation across sectors.

Newgen is a global software company that helps large organisations run their operations more smoothly by bringing together automation, AI, and smart content management on one platform. Its flagship product, NewgenONE, is an AI-powered low-code platform that lets enterprises automate entire workflows, manage documents and communications, and modernise old, manual processes. The system is flexible enough to run on the cloud, on-premises, or in hybrid setups, depending on what a business needs.

Its strength lies in building industry-ready solutions for banking, insurance, and government sectors that handle high volumes of data and require reliable, secure, and efficient processing. By using tools like generative AI and machine learning, the company helps organisations work faster and reduce operational bottlenecks. With about 500 active customers across 77 countries, Newgen has grown into a trusted technology partner for enterprises looking to upgrade their digital capabilities and improve customer experiences.

Written by Leon Mendonca

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