- Newgen Software shares surged up to 6.9% amid heavy trading on the BSE
- At 10 am, shares traded at Rs 576.80, up 9.92%, outperforming the BSE Sensex
- The Nifty IT index rose nearly 3%, boosted by better earnings and AI trade reversal
IT company Newgen Software shares were in demand on Wednesday, with the stock surging as much as 6.9% to an intraday high of Rs 556.60 on the BSE amid heavy trading volumes.
At 10 am, Newgen Software share price was trading at Rs 576.80 per share, up 9.92%. By comparison, BSE Sensex was trading at 77,528 levels, up 0.98%.
The rally comes after renewed buying interest in IT stocks, supported by improving earnings sentiment and positive brokerage commentary. Notably, the stock has gained over 18% in the past one month.
At the time of writing, around 22.17 lakh shares worth Rs 121.56 crore had changed hands on the BSE, while 1.27 lakh shares worth Rs 6.96 crore were traded on the NSE.
IT Stocks Extend Rally
The Nifty IT index rose nearly 3% intraday, extending gains for a second consecutive session. The sector benefited from improving earnings expectations and a reversal in the global AI trade, which lifted sentiment across technology stocks.
ALSO READ: TCS, Infosys, Coforge Rise 3% In Early Trade For Second Straight Session: What's Driving The Rally?
Jefferies Remains Bullish
Earlier this month, global brokerage Jefferies reiterated its 'Accumulate' rating on Newgen Software and raised its target price to Rs 630 from Rs 610.
The brokerage cited inline revenue performance and an earnings beat, highlighting a sharp increase in licence revenues as a key growth driver. It expects growth momentum to improve from FY27 and believes AI-led productivity initiatives will help keep margins stable.
Q1FY27 Performance
Newgen Software reported a mixed set of numbers for the June quarter (Q1FY27).
Net profit declined 40.9% quarter-on-quarter (QoQ) to Rs 62.8 crore, compared with Rs 106 crore in Q4FY26. Revenue fell 21.2% QoQ to Rs 357 crore from Rs 453 crore in the preceding quarter.
At the operating level, EBIT dropped 67.2% sequentially to Rs 46.8 crore, versus Rs 143 crore in Q4FY26. Consequently, the EBIT margin narrowed to 13.1% from 31.5%, a contraction of 1,840 basis points QoQ.
ALSO READ: Newgen Software Q1 Result: Net Profit Down 41% QoQ, Revenue Falls 21% To Rs 357 Crore
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