Newgen Software shares demonstrated robust trading activity on Wednesday, surging as much as 6.9% to an intraday high of ₹556.60 on the BSE amid heavy trading volumes. At 10 am, the stock was trading at ₹576.80 per share, representing a 9.92% increase. The strong performance significantly outpaced the BSE Sensex, which was trading at 77,528 levels, up 0.98% during the same period. The latest trading data shows the stock has now gained over 23% in the past month, demonstrating sustained investor confidence in the IT company.
The rally reflects renewed buying interest in IT stocks, supported by improving earnings sentiment and positive brokerage commentary. As reported by NDTV Profit, the stock has gained over 23% in the past month, demonstrating sustained investor confidence. Trading volumes were particularly heavy, with approximately 22.17 lakh shares worth ₹121.56 crore changing hands on the BSE, while 1.27 lakh shares worth ₹6.96 crore were traded on the NSE. The strong performance comes after renewed buying interest in IT stocks, with the sector benefiting from improving earnings expectations and a reversal in the global AI trade.
The broader IT sector benefited from the positive momentum, with the Nifty IT index rising nearly 3% intraday, extending gains for a second consecutive session. According to NDTV Profit, the sector benefited from improving earnings expectations and a reversal in the global AI trade, which lifted sentiment across technology stocks. This broader sector strength provided additional support for Newgen Software's strong performance, with the company being among the top gainers in the IT space during Wednesday's trading session.
Global brokerage Jefferies reiterated its 'Accumulate' rating on Newgen Software and raised its target price to ₹630 from ₹610 earlier this month. As reported by NDTV Profit, the brokerage cited inline revenue performance and an earnings beat, highlighting a sharp increase in licence revenues as a key growth driver. Jefferies expects growth momentum to improve from FY27 and believes AI-led productivity initiatives will help keep margins stable. The brokerage's positive stance continues to support the stock's strong performance in the current trading session.
Newgen Software reported mixed financial results for the June quarter (Q1FY27), according to NDTV Profit. Net profit declined 40.9% quarter-on-quarter to ₹62.8 crore, compared with ₹106 crore in Q4FY26. Revenue fell 21.2% QoQ to ₹357 crore from ₹453 crore in the preceding quarter. At the operating level, EBIT dropped 67.2% sequentially to ₹46.8 crore, versus ₹143 crore in Q4FY26, with the EBIT margin narrowing to 13.1% from 31.5%. The contraction of 1,840 basis points in EBIT margin QoQ reflects the challenging operating environment during the quarter.
