Mumbai: Newgen Software Technologies on Tuesday reported 29.42 per cent year-on-year (YoY) drop in net profit in the December quarter of the current financial year (Q3 FY26).
The company’s net profit declined to Rs 62.81 crore in Q3, compared to Rs 89 crore in corresponding quarter of previous financial year (Q3 FY25), according to its stock exchange filing.
On quarter-on-quarter (QoQ), the New Delhi-based IT firm posted 23.3 per cent decline in its net profit, compared with Rs 81.74 crore in the previous quarter (Q2 FY26).
Revenue from operations remained almost flat and slipped marginally by 0.2 per cent to Rs 400.27 crore from Rs 400.79 crore on a quarter-on-quarter basis, it said in its regulatory filing.
Despite the drop in profit, operating performance showed some improvement. EBIT rose 3.1 per cent to Rs 97 crore from Rs 93.3 crore in the September quarter.
As a result, the EBIT margin improved to 24.2 per cent from 23.3 per cent on a sequential basis.
Newgen Software Technologies said its profitability was impacted by a one-time charge of around Rs 35 crore due to the implementation of the new labour code.
The company added that if this one-time impact is excluded, its bottom line would have been higher on a quarter-on-quarter basis.
On the business front, the India segment saw a decline, with revenue falling to Rs 115.4 crore from Rs 117.8 crore in the previous quarter.
Revenue from the EMEA region remained flat at Rs 123.6 crore. The APAC business reported a modest increase, with revenue rising to Rs 65.32 crore from Rs 63.45 crore.
The US business also posted a slight growth, with revenue increasing to Rs 96 crore from Rs 95 crore in the September quarter, as per its regulatory filing.
Following the announcement, Newgen Software shares plunged nearly 16 per cent to hit an intra-day low of Rs 617.55 on the NSE.
Around 2:31 p.m., the stock was trading around 15.5 per cent lower at Rs 621.85 apiece. Over the past 12 months, Newgen Software’s share price has declined nearly 57 per cent.
(IANS)
