IT Stock Jumps 11% After Its Net Profits Grow 69% in Q4; US and APAC Regions Drive Growth

Synopsis: IT firm reported strong Q4FY26 performance with revenue rising 13% QoQ to Rs. 452.67 crore and net profit surging 69% to Rs. 106.30 crore, driven by APAC and USA-led growth and operating leverage.

The shares of this global software company are engaged in the business of software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services are in the spotlight after it rose by 11% in today’s session following its Q4 results.  

With a market capitalisation of Rs. 7,322 cr, the shares of Newgen Software Technologies Ltd were trading at Rs. 514.45per share, increasing 11% in today’s market session, making a high of Rs. 533.90, up from its previous close of Rs. 480.60 per share.

Quarter-on-Quarter (QoQ) Performance

Revenue from operations rose to Rs. 452.67 crore in Q4FY26 from Rs. 400.28 crore in Q3FY26, marking a strong 13.1% QoQ growth. Total income grew at a slightly slower pace of 8.7% QoQ to Rs. 457.02 crore, mainly due to lower other income to Rs. 4.35 crore from Rs. 20.05 crore in the previous quarter.

On the cost side, total expenses increased modestly by 1.9% QoQ to Rs. 310.89 crore, showing good cost control relative to revenue growth. This operating leverage led to a sharp improvement in profitability, profit before tax (PBT) jumped 72.1% QoQ to Rs. 137.80 crore. Net profit surged to Rs. 106.30 crore, up from Rs. 62.82 crore, reflecting a strong 69.2% QoQ increase, driven by higher revenue and normalization of exceptional items. 

Year-on-Year (YoY) Performance 

Revenue from operations grew to Rs. 452.67 crore from Rs. 429.89 crore, a steady 5.3% YoY increase. Total income rose 2.9% YoY to Rs. 457.02 crore, impacted by lower contribution from other income compared to last year.

Expenses increased by 2.7% YoY to Rs. 310.89 crore, broadly in line with income growth, indicating stable cost management. As a result, operating profit remained relatively steady. Profitability saw slight pressure where PBT declined 2.5% YoY to Rs. 137.80 crore from Rs. 141.27 crore, and net profit came in at Rs. 106.30 crore, down 1.9% YoY from Rs. 108.34 crore. 

Segment performance 

Geographically, growth was broad-based. India revenue increased to Rs. 124.38 crore from Rs. 115.41 crore, reflecting a 7.8% QoQ rise, while EMEA showed stronger momentum with an 11.2% increase to Rs. 137.56 crore. APAC recorded the sharpest expansion, jumping 29.6% QoQ to Rs. 84.60 crore, indicating a strong rebound in the region. USA revenue also grew 10.8% QoQ to Rs. 106.12 crore. 

Segment profitability improved significantly during the quarter. India PBT increased 36.1% QoQ to Rs. 25.60 crore, while EMEA grew 13.1% to Rs. 46.94 crore. APAC stood out with a sharp 73.9% surge in profits to Rs. 37.68 crore, in line with its strong revenue performance. USA profits also rose substantially by 67.4% QoQ to Rs. 42.96 crore. 

Newgen Software Technologies Ltd is a global enterprise software company. It specialises in workflow automation, document management, and digital transformation solutions, serving industries like banking, insurance, healthcare, and government. The company offers end-to-end platforms including cloud-based SaaS and recurring support services, with a growing international presence across the US, Europe, and Asia.

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