Newgen Software shares fell 6.35% to ₹960.50 following the release of disappointing Q1 FY25 results. The drop was driven by a significant quarter-on-quarter decline in revenue and profit, along with weakness in international markets.
Key Q1 Financial Highlights:
Revenue from operations: ₹321 crore
↳ +2% YoY, –25% QoQ
Net profit: ₹49.72 crore
↳ +4% YoY, –54% QoQ
Total income: ₹350 crore (–21% QoQ)
Core profit: ₹45 crore (–6% YoY)
EBITDA margin: Down to 14% from 15%
Subscription revenue: ₹121 crore (+19% YoY)
Regional Weakness:
Europe revenue: Fell to ₹103.4 crore from ₹138.56 crore (–25.4% QoQ)
APAC revenue: Dropped 29.6% QoQ to ₹49.2 crore
Business Updates:
Added 12 new clients
Secured 25th patent
Focus remains on AI platforms like Marvin and Harper
Analyst & Technical Insights:
Vishal Trehan (SEBI RA):
Applauded growth in subscription revenue but flagged international weakness.
Vijay Kumar Gupta (SEBI RA):
Warned of a technical breakdown, citing:
Bearish engulfing pattern
CCI at –131
Falling OBV (On-Balance Volume)
Support zone: ₹940–₹950
Resistance: ₹1,020 (needs strong volume to reverse trend)
Market Sentiment:
Retail sentiment: Bearish (as per Stocktwits)
YTD stock performance: Down 43.3% in 2025
