Newgen Software Technologies Limited (NEWGEN) AI Stock Analysis

• Market Cap: ₹66.55B
• Dividend Yield: 0.59%
• Average Volume (3M): 58.88K
• Price to Earnings (P/E): 47.4
• Beta (1Y): 1.23
• Revenue Growth: 11.47%
• EPS Growth: 12.41%
• Country: IN
• Employees: 3,890
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 5.40
• Shares Outstanding: 142,317,780
• 10 Day Avg. Volume: 33,269
• 30 Day Avg. Volume: 58,884
• PEG Ratio: 1.81
• Price to Book (P/B): 9.42
• Price to Sales (P/S): 9.61
• P/FCF Ratio: 74.55
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹770.00
• Price Target Upside: -8.30% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 23.87
• Revenue Forecast (FY): ₹15.85B

• Rating: 65 Neutral
• Price Target: ₹495.00 ▼(-41.05% Downside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is primarily supported by strong financial performance (growth, margins, low leverage, solid free cash flow), but is meaningfully held back by weak technical signals (price well below key moving averages and negative MACD). Valuation is middle-of-the-road with a modest dividend yield.

Positive Factors

High profitability and margins

Sustainably high gross, EBIT and net margins indicate Newgen can convert revenue into profit efficiently across cycles. Robust operating margins support reinvestment in product development and go-to-market, improving long-term competitive positioning and returns on incremental revenue.

Strong balance sheet and low leverage

A high equity ratio and low debt levels give Newgen financial flexibility to invest, pursue strategic M&A, or weather downturns without undue refinancing risk. Strong ROE reflects effective use of capital, supporting sustainable shareholder value creation over multiple quarters.

Consistent free cash flow generation

Reliable FCF generation underpins self-funded growth, recurring R&D and service investments, and the capacity to support working capital needs. Strong FCF-to-income metrics reduce dependence on external financing, strengthening long-term operational resilience.

Negative Factors

Declining operating cash flow

A drop in operating cash flow can constrain organic investment and increase reliance on balance sheet or external funding for growth. If persistent, it signals working-capital stress or weaker cash conversion, which can erode the company’s ability to sustain capex, hiring, or buybacks over months.

Negative EPS growth trend

A negative EPS growth rate implies per-share profitability is contracting versus prior periods. Over a multi-quarter horizon this may reflect margin compression, pricing pressures, or higher costs that reduce earnings power and limit the firm’s capacity to expand margins or increase shareholder distributions.

Revenue mix reliant on services & channels

Heavy reliance on implementation services and channel partners can make revenue lumpy and cap gross margin scalability. Partner-led deals also dilute direct customer control, potentially slowing upsell cycles and placing long-term pressure on recurring SaaS-like revenue mix and predictable cash conversion.

Newgen Software Technologies Limited Business Overview & Revenue Model

Company Description

Newgen Software Technologies Limited, a software company, provides software products and solutions in India, Europe, the Middle East, Africa, the Asia Pacific, and the United States. The company offers enterprise content management software, which manages the end-to-end lifecycle of enterprise content from origination to disposition; business process management software to streamline enterprise-wide workflows with process automation suite; and customer communication management software delivers communications by tapping various cross-sell/up-sell opportunities across touch points, such as email, SMS, web, and print. It serves various industries, which include financial institutions, insurance, healthcare, government, telecom, shared services, business process outsourcing, and other industries. The company was incorporated in 1992 and is based in New Delhi, India.

How the Company Makes Money

Newgen primarily makes money by selling and supporting enterprise software used for process automation and content-driven applications. Key revenue streams include: (1) Software licensing/subscription: revenue from licensing its platforms and solution modules (e.g., low-code platform, BPM/workflow, ECM/document management, and CCM) to enterprise customers; depending on contract structure this can be recognized as license fees and/or subscription revenue. (2) Implementation and professional services: fees for deploying, configuring, customizing, integrating, and migrating solutions into customer environments, including building customer-specific applications on its low-code platform and implementing industry use cases (such as lending/loan origination, onboarding, or case management) where applicable. (3) Maintenance and support/AMC: recurring revenue from annual maintenance and technical support contracts tied to on-premise licenses and ongoing support obligations. (4) Cloud/hosted offerings: where customers consume Newgen solutions via cloud deployment, revenue is earned through recurring subscription and related managed/hosting services (exact mix not publicly attributable here). (5) Partner/channel-led sales: Newgen also sells through system integrators, implementation partners, and other channel partners that help source deals and deliver projects; partner ecosystems can influence earnings by expanding distribution and enabling large transformation programs, but specific partner names/terms are null.

Newgen Software Technologies Limited Financial Statement Overview

Summary

Strong overall fundamentals supported by robust revenue growth and healthy profitability (high gross/net and EBIT/EBITDA margins), a stable balance sheet with low leverage and strong ROE, and generally solid free cash flow generation. The main financial watch-out is the decline in operating cash flow from 2024 to 2025.

Income Statement

Newgen Software Technologies Limited has demonstrated strong revenue growth over the years, with a notable increase from 2024 to 2025. The gross profit margin and net profit margin are healthy, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust, suggesting strong operational performance. Overall, the income statement reflects a positive growth trajectory and strong profitability.

Balance Sheet

The company's balance sheet shows a strong equity position with a high equity ratio, indicating financial stability. The debt-to-equity ratio is low, reflecting prudent leverage management. Return on equity is impressive, demonstrating effective use of shareholder capital to generate profits. The company's financial health is stable with a low risk of over-leverage.

Cash Flow

Newgen Software Technologies Limited has shown a consistent ability to generate positive free cash flow, although there was a decrease in operating cash flow from 2024 to 2025. The free cash flow to net income ratio remains strong, indicating efficient cash generation relative to net income. However, the decline in operating cash flow warrants attention. Overall, the cash flow statement reflects good cash management with some areas for improvement.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	14.93B	14.87B	12.44B	9.74B	7.79B	6.73B
Gross Profit	7.44B	7.46B	6.16B	4.58B	3.70B	3.45B
EBITDA	3.59B	3.60B	2.74B	2.02B	1.87B	1.81B
Net Income	3.17B	3.15B	2.52B	1.77B	1.64B	1.26B
Balance Sheet
Total Assets	0.00	20.45B	16.86B	13.42B	11.07B	9.21B
Cash, Cash Equivalents and Short-Term Investments	9.24B	9.24B	7.41B	3.40B	3.68B	3.25B
Total Debt	0.00	534.85M	485.07M	427.13M	278.23M	200.91M
Total Liabilities	-15.16B	5.29B	4.63B	3.62B	2.96B	2.55B
Stockholders Equity	15.16B	15.16B	12.24B	9.77B	8.11B	6.66B
Cash Flow
Free Cash Flow	0.00	1.92B	2.68B	1.20B	1.30B	2.04B
Operating Cash Flow	0.00	2.15B	2.81B	1.36B	1.43B	2.16B
Investing Cash Flow	0.00	-1.72B	-2.19B	-942.98M	-805.92M	-1.43B
Financing Cash Flow	0.00	-680.86M	-474.55M	-440.48M	-319.74M	-1.02B

Newgen Software Technologies Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 839.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:NEWGEN, the sentiment is Negative. The current price of 839.7 is above the 20-day moving average (MA) of 509.21, above the 50-day MA of 627.43, and below the 200-day MA of 882.51, indicating a bearish trend. The MACD of -42.23 indicates Negative momentum. The RSI at 35.65 is Neutral, neither overbought nor oversold. The STOCH value of 15.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:NEWGEN.

Newgen Software Technologies Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CYIENT	73 Outperform	₹100.89B	33.59	―	2.62%	1.68%	-12.95%
NEWGEN	65 Neutral	₹66.55B	47.37	―	0.59%	11.47%	12.41%
INTELLECT	62 Neutral	₹94.46B	118.88	―	0.69%	15.87%	39.55%
ZENSARTECH	62 Neutral	₹127.69B	19.99	―	1.75%	9.16%	7.77%
TEJASNET	62 Neutral	₹82.61B	-10.28	―	0.55%	-17.23%	-185.73%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
HFCL	56 Neutral	₹106.91B	25.29	―	0.15%	-19.16%	-92.64%

Newgen Software Technologies Limited Corporate Events

Newgen bags USD 1.5 million Caribbean insurance digital platform deal

Newgen Software Technologies’ U.S. subsidiary, Newgen Software Inc., has signed a Master Service Agreement with an insurance company in the Caribbean to supply, install, and implement the NewgenONE Digital Transformation Platform. The three-year international contract, valued at about USD 1.495 million or INR 13.77 crore, covers licenses, implementation, and ongoing maintenance and support, strengthening Newgen’s footprint in the insurance sector and expanding its presence in overseas markets.

Newgen Software Publishes Q3 FY26 Earnings Call Transcript

Newgen Software Technologies Limited has released the official transcript of its Q3 FY 2026 earnings conference call with investors and analysts, held on 20 January 2026. The document, which features commentary from the company’s senior leadership including its co-founder, CEO, COO, CFO and head of investor relations, has been filed with the stock exchanges and is available on Newgen’s website, underscoring the firm’s ongoing disclosure practices and engagement with capital markets stakeholders.

Newgen Shareholders Approve Appointment of Shubhi Nigam to Board via Postal Ballot

Newgen Software Technologies Limited has announced the outcome of a postal ballot in which shareholders approved the appointment of Ms. Shubhi Nigam as a Non-Executive Non-Independent Director of the company. The resolution, conducted through e-voting in line with SEBI’s Listing Regulations, was passed on 10 January 2026 with a requisite majority, reflecting strong shareholder participation across promoter, institutional, and non-institutional categories and reinforcing the company’s board structure and corporate governance framework.