Newgen Software Stock Crashes 16% After Reporting Muted Q3 Results; Check the Details

SYNOPSIS: Newgen Software reported stable Q3 FY26 revenues with modest YoY growth, while profits declined due to a one-time Rs. 35 crore labour code impact; geographic revenue mix remained broadly steady quarter-on-quarter.

During Tuesday’s trading session, shares of a global provider of AI-enabled end-to-end automation at scale tumbled around 16 percent to hit a new 52-week low at Rs. 617.7 on BSE, after reporting muted Q3 FY26 results, with a fall in net profit by around 23 percent QoQ and 29 percent YoY.

At 02:33 p.m., shares of Newgen Software Technologies Limited were trading in red at Rs. 629.7 on BSE, down by over 14 percent, compared to its previous closing price of Rs. 735.6, with a market cap of Rs. 8,929.7 crores. The stock has delivered negative returns of over 59 percent in the last one year, and has fallen by nearly 26 percent in the last one month.

Financial Performance for Q3 FY26

Newgen Software Technologies Limited announced the financial results for the third quarter of FY26 on Tuesday during market hours, as per the latest regulatory filings with the stock exchanges.

For the quarter, the company posted a consolidated revenue from operations of Rs. 400.3 crores, reflecting a sequential decline of around 0.12 percent QoQ compared to Rs. 400.8 crores in Q2 FY26. However, on a year-on-year basis, revenue grew nearly 5 percent from Rs. 381 crores recorded in Q3 FY25.

Net profit for Q3 FY26 stood at Rs. 62.8 crore, indicating a significant decrease of around 23 percent QoQ from Rs. 81.7 crores in Q2 FY26, as well as on a year-on-year basis by over 29 percent from Rs. 89 crores reported in Q3 FY25.

This profitability was affected by a one-time impact of Rs. 35 crore related to the new labour code. Excluding this exceptional impact, sequential performance at the net profit level would have been stronger.

Geographical Revenue Mix

Compared with the quarter ended September 2025, the geographic revenue mix remained largely stable, with only marginal sequential movement. India contributed Rs. 115.4 crore in December, down from Rs. 117.83 crore in the previous quarter, lowering its share from about 29.4 percent to 28.8 percent. Revenue from the EMEA region declined to Rs. 123.66 crore versus Rs. 124.53 crore earlier, continuing to be the largest contributor at around 31 percent of total revenues.

The USA segment generated Rs. 96 crore compared to Rs. 94.98 crore in September, keeping its contribution near 24 percent. APAC revenues came in at Rs. 65.32 crore, slightly higher than Rs. 63.45 crore in the previous quarter, accounting for roughly 16 percent of overall revenue.

Newgen Software Technologies Limited is a global software company and is engaged in the business of software product development, including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to document management to imaging. 

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