Newgen Software Technologies Limited (NEWGEN) AI Stock Analysis

• Market Cap: ₹66.10B
• 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): 24.42
• Revenue Forecast (FY): ₹15.85B

• Rating: 65 Neutral
• Price Target: ₹499.00 ▼(-40.57% 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

Revenue Growth Trend

Consistent revenue expansion, including a reported increase from 2024 to 2025, indicates durable market adoption of Newgen’s low-code, BPM and ECM offerings across banks, insurers and governments. Sustained top-line growth supports reinvestment, scale economics and longer-term recurring revenue opportunities from maintenance and cloud subscriptions.

Robust Profitability and Margins

High gross, net and operating margins imply an efficient cost structure and pricing power in enterprise software and services. Durable margin profiles support internal funding for R&D and go-to-market expansion, and provide resilience to cyclical demand swings, helping long-term cash generation and shareholder returns.

Strong Balance Sheet and Cash Generation

Low leverage and impressive ROE signal prudent capital management and financial stability. Combined with a track record of positive free cash flow, Newgen has flexibility to fund organic growth, cloud investments or selective M&A without stressing the balance sheet, reducing refinancing and liquidity risk over time.

Negative Factors

Decline in Operating Cash Flow

A drop in operating cash flow weakens near-term cash conversion and can reflect slower collections or timing of project billings. Even with positive free cash flow, this trend reduces the margin of safety for funding growth and may increase working-capital pressure or dependence on external financing if it persists.

Negative EPS Growth

Negative EPS growth year-over-year signals per-share profitability deterioration, which could stem from margin pressure, one-offs, or increased operating investments. Over a multi-month horizon this undermines earnings momentum and warrants scrutiny of profitability drivers and management’s ability to restore EPS expansion.

Revenue Mix Reliant on Services and Partners

Heavy reliance on implementation and partner-led deals makes revenue lumpy and more project-driven versus pure subscription ARR. This structure can compress margins, extend sales cycles, and reduce predictability of recurring cash flows, raising execution risk for sustainable margin and revenue growth.

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 Software generates revenue primarily through the sale of software licenses, subscription fees for its cloud-based services, and professional services related to implementation and customization of its solutions. The company's revenue model includes both one-time license fees for on-premise deployments and recurring revenue from cloud subscriptions. Additionally, Newgen earns income from maintenance and support services for its software products. Significant partnerships with various technology companies and consulting firms further enhance its market reach and contribute to its earnings. The growing demand for digital transformation and automation solutions across industries also plays a crucial role in driving the company's revenue growth.

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 517.46, above the 50-day MA of 642.94, and below the 200-day MA of 890.85, indicating a bearish trend. The MACD of -43.05 indicates Negative momentum. The RSI at 34.36 is Neutral, neither overbought nor oversold. The STOCH value of 10.65 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	₹98.22B	33.59	―	2.62%	1.68%	-12.95%
NEWGEN	65 Neutral	₹66.10B	47.37	―	0.59%	11.47%	12.41%
INTELLECT	62 Neutral	₹94.98B	118.88	―	0.69%	15.87%	39.55%
ZENSARTECH	62 Neutral	₹126.99B	19.99	―	1.75%	9.16%	7.77%
TEJASNET	62 Neutral	₹82.65B	-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	₹106.76B	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.