Newgen Software shares crash 16%, hit 52-week low; here's why 

Shares of Newgen Software Technologies hit a fresh 52 week low after the IT firm reported its Q3 earnings. Net profit slipped 23.2% to Rs 63 crore in Q3 against Rs 82 crore on a quarter on quarter basis. Profit fell 29% from Rs 89 crore in the December 2024 quarter. Revenue was flat at Rs 400.3 crore in the last quarter against Rs 401 crore in the September 2025 quarter. 

The company stated there was a one-time impact of the new labour code worth Rs 35 crore, which affected its profitability. 

Newgen Software Technologies stock crashed 16% to Rs 617.70 on Tuesday. Market cap of the firm fell to Rs 8,994 crore.

Total 5.35 lakh shares of the firm changed hands amounting to a turnover of Rs 34.75 crore. The IT stock has lost 59.41% in a year and fallen 34% in six months. 

The stock hit a 52 week high of Rs 1696.80 on January 20, 2025. 

Earnings Before Interest and Tax (EBIT) rose 3.1% to Rs 97 crore in Q3 from Rs 94.4 crore in the last quarter. EBITDA margins climbed 70 basis points from the previous quarter to 24.2% from 23.5%.

Newgen Software Technologies Limited is a provider of a unified digital transformation platform (NewgenONE) for automating the end-to-end process and comprehensively managing content and communications, backed by artificial intelligence (AI)-based cognitive capabilities, governance and a robust integration ecosystem. The core products of NewgenONE platform are Contextual Content Services (ECM), Low Code Process Automation (BPM), Omnichannel Customer Engagement (CCM) and Artificial Intelligence Cloud.