Shares of Newgen Software Technologies Ltd. on Tuesday slumped more than 10% to hit a 26-month low after the company reported weaker-than-expected third-quarter earnings.
The stock fell as much as 10.9% to Rs 645.25 apiece in intraday trade, its lowest level since November 2023. It was last trading at Rs 655.30, down 10.87%, compared with its previous close of Rs 735.20.
Newgen Software Q3 Results (Consolidated, QoQ)
- Net Profit down 23.2% at Rs 62.8 cr vs Rs 81.7 cr
- Revenue down 0.1% at Rs 400 cr vs Rs 401 cr
- EBIT up 4.2% at Rs 97.2 cr vs Rs 93.3 cr
- EBIT Margin at 24.3% vs 23.3%
Newgen Software reported a 23.2% sequential decline in consolidated net profit to Rs 62.8 crore for the December quarter, compared with Rs 81.7 crore in the September quarter.
The sharp sell-off pushed the stock well below its key moving averages. Newgen Software is now trading significantly under its 50-day, 100-day and 200-day moving averages of Rs 862.25, Rs 881.58 and Rs 967.32, respectively. The relative strength index stood at 51.28, indicating neutral momentum despite the steep fall.
Trading volumes surged sharply, with total traded volume at around 23.9 lakh shares so far in the session — nearly nine times its 30-day daily average. Turnover stood at Rs 156.5 crore.
The stock has erased a significant portion of investor wealth over the past year, with the scrip down 58.1% over the last 12 months and 22.5% so far in 2026. Its market capitalisation slipped to about Rs 12,911 crore following the sell-off.
Analysts tracking the stock remain divided, despite the sharp correction. According to Bloomberg data, out of nine analysts covering Newgen Software, five have a ‘buy' rating on the stock, while two recommend a ‘hold' and two suggest ‘sell'.
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