Newgen Software Net Profit in June Quarter Up by 4.52%
By Ankur Chandra | Published at: Jul 17, 2025 05:03 PM IST
New Delhi, July 17: Newgen Software Technologies Ltd (NSE: NEWGEN, BSE: 540900) net profit in June quarter was up year-on-year by 4.52% to Rs 49.7 crore.
The company also alloted 53,600 shares under ESOP 2022.
What Are ESOPs?
Employee Stock Option Plans (ESOPs) are employee benefit schemes that offer employees the right to purchase shares of their employer company at a pre-determined price, usually below the market price, after a specified vesting period. They are often used to:
- Retain Talent: By tying employee benefits to company performance and requiring a vesting period, ESOPs encourage long-term commitment.
- Align Interests: Employees become partial owners, which can boost motivation, productivity, and a sense of shared responsibility for the company’s success.
- Attract Talent: Especially for start-ups or high-growth companies with limited cash resources, ESOPs can make job offers more competitive.
- Provide Financial Reward: If the company’s stock value increases, employees can realise significant wealth creation.
- Offer Tax Efficiency: In many regions, ESOPs receive favourable tax treatment for both the company and the employee.
Key Financial Highlights (Q1 FY26)
Consolidated Financial Performance
| Particulars | Q1 FY26 | Q4 FY25 | Q1 FY25 | YoY Growth | QoQ Change |
|---|---|---|---|---|---|
| Revenue from Operations | ₹32,055.63 lakh | ₹42,988.98 lakh | ₹31,471.93 lakh | 1.85% | -25.44% |
| Total Income | ₹35,004.34 lakh | ₹44,400.81 lakh | ₹33,728.01 lakh | 3.78% | -21.17% |
| Profit Before Tax | ₹6,410.68 lakh | ₹14,127.12 lakh | ₹6,149.05 lakh | 4.25% | -54.63% |
| Net Profit | ₹4,972.06 lakh | ₹10,833.92 lakh | ₹4,756.98 lakh | 4.52% | -54.10% |
| EPS (Basic / Diluted) | ₹3.55 / ₹3.45 | ₹7.73 / ₹7.58 | ₹3.40 / ₹3.30 | – | – |
Newgen Software’s net profit saw a 4.5% year-on-year (YoY) increase. However, it experienced a sharp quarter-on-quarter (QoQ) decline, primarily attributed to seasonality and higher expenses.
Segment-wise Revenue (Consolidated)
| Region | Q1 FY26 Revenue (₹ lakh) | YoY Change |
|---|---|---|
| India | 9,534.79 | 2.99% |
| EMEA | 10,337.10 | 0.25% |
| APAC | 4,990.78 | 2.84% |
| USA | 7,202.96 | 2.18% |
| Total | ₹32,055.63 | 1.85% |
EMEA and India remained the largest contributors to topline with balanced performance across geographies.
Share Allotment Under ESOP Scheme: 2022
The company issued and allotted a total of 53,600 equity shares to the Newgen ESOP Trust:
| Grant Details | No. of Shares | Issue Price (₹) | Value (₹) |
|---|---|---|---|
| First Tranche | 3,600 | 944.15 | ₹33,98,940 |
| Second Tranche | 50,000 | 1,216.00 | ₹6,08,00,000 |
| Total | 53,600 | – | ₹6.42 Cr |
Revised Share Capital:
| Before Allotment | After Allotment |
|---|---|
| ₹141,62,51,870 | ₹141,67,87,870 |
These shares rank pari passu with the existing equity shares in all respects.
Management Commentary
“The company has started the financial year with stable growth across geographies. Our digital transformation solutions continue to drive customer value and long-term contracts globally,” said Diwakar Nigam, Chairman & Managing Director.
Share Price Performance
As of 1:10 PM, the shares of Newgen Software are trading at ₹1,032.50, down by 5.40% or ₹58.90. It remains to be seen at what price the shares close at the end of today’s market session.
Strategic Outlook
- Dividend: A dividend of ₹5.00 per share has been recommended for FY25, pending approval at the upcoming Annual General Meeting (AGM).
- ESOP Activity: In May 2025, 93,300 options were granted to employees under the ESOP 2022 scheme, indicating continued reliance on this incentive programme.
- Geographic Diversification: The company maintains a strong and diversified presence across key markets, including India, EMEA, USA, and APAC, which contributes to its balanced performance.
About the Company
Newgen Software Technologies Ltd, listed on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), is a global provider of low-code digital transformation platforms. The company serves a diverse clientele across various industries, including banking, insurance, government, and healthcare. Its comprehensive product offerings encompass content management, process management, and communication management, enabling clients to achieve seamless digital operations.
REF: https://www.bseindia.com/xml-data/corpfiling/AttachLive/06594e64-5d1c-4d1f-b17c-b7f85bec5ad7.pdf
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