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Newgen Software Technologies Ltd reported a sharp decline in Q1 FY27 earnings on Thursday, with net profit dropping 40.9 per cent sequentially as revenue and operating profit contracted, according to an exchange filing. 

The company said net profit fell to Rs 62.8 crore in the June quarter of FY27 from Rs 106 crore in the previous quarter.

Revenue eased 21.2 per cent sequentially to Rs 357 crore, down from Rs 453 crore in the previous quarter. At the operating level, earnings before interest, tax (EBIT), dropped 67.2 per cent sequentially to Rs 46.8 crore, as against Rs 143 crore in Q4FY26, the company said.

The New Delhi-based IT firm’s EBIT margin contracted 1,840 basis points QoQ to 13.1 per cent from 31.5 per cent in the previous quarter.

However, on an annual basis the company saw revenue growth of 11 per cent with strong growth across major geographies, the filing showed.

The EBITDA witnessed a growth of 24 per cent, with margins expanding from 14 per cent to 15.7 per cent on an annual basis.

Profit after Tax witnessed a growth of 26 per cent on a YoY basis with margins expanding from 15.5 per cent to 17.6 per cent.

"Our SaaS and License Subscription revenues grew at 40 per cent YoY to Rs 60 crore, reflecting the continued strength of our recurring revenue business. During the quarter, we added 10 new customer logos, secured strategic wins across banking, insurance, and enterprise content management," said Virender Jeet, Chief Executive Officer, Newgen Software Technologies Ltd.

The company delivered broad-based geographic growth, led by the Americas, where revenues grew 27 per cent YoY, followed by APAC at 12 per cent YoY and EMEA at 10 per cent YoY, reflecting healthy demand across key international markets.

It also added 10 new enterprise customers during the quarter, further strengthening the company's global customer base across priority industries.

Shares of Newgen closed at Rs 541, down Rs 16.70, or 2.99 per cent, on the National Stock Exchange after the results.