Shares of Newgen Software Technologies surged as much as 9 percent in intra-day trading on Thursday, June 5, after the company secured a significant $2.5 million international order for a digital transformation initiative. The stock touched ₹1,335.70 during the session, marking one of the top gainers in the IT midcap space for the day.
The rally was fueled by back-to-back positive triggers — a substantial international deal announcement and robust financial results for the quarter and year ended March 31, 2025 — both of which have bolstered investor confidence.
$2.5 Million Global Order Enhances Digital Capabilities
In a regulatory filing made on Wednesday, June 4, Newgen Software announced that it has secured and accepted a $2.5 million (approximately ₹20.8 crore) contract from an overseas client. The deal encompasses the supply and implementation of the company’s Enterprise Workflow and Content Management System.
The five-year contract includes licensing, implementation, and support services. The deployment of Newgen’s technology solutions will support digital transformation initiatives across multiple business lines of the client, further solidifying Newgen’s reputation as a leading provider of low-code, content, and process automation platforms globally.
This strategic win is seen as another step in Newgen’s expanding international footprint, particularly in the enterprise digital transformation space where demand continues to grow.
Q4 and FY25 Earnings Show Resilient Growth
Complementing the deal announcement, Newgen also released its financial results for the fourth quarter and full financial year FY25, showcasing steady and profitable growth.
For Q4 FY25, the company reported a 2.8 percent year-on-year rise in consolidated net profit to ₹108.3 crore, compared to ₹105.26 crore in the same quarter last year. Revenue from operations stood at ₹429.8 crore, reflecting a 14.5 percent increase from ₹375.2 crore in Q4 FY24. Sequentially, profit jumped 21.6 percent, while revenue grew 12.7 percent.
For the full fiscal year FY25, Newgen posted a 20.5 percent jump in net profit to ₹315.2 crore from ₹251.6 crore in FY24. Total revenue for the year reached ₹1,486.8 crore, marking a 19.5 percent year-on-year increase, largely driven by strong license and implementation revenues, particularly from the APAC and US markets.
Diwakar Nigam, Chairman and Managing Director of Newgen Software Technologies, noted that the company saw strong traction in its core markets and attributed the growth to robust deal wins and an expanding customer base. “Our large customer base, with billings exceeding ₹5 crore, has increased to 87 customers from 65 last year. The US region was particularly strong in terms of new contracts,” he said.
Stock Price Trend
The IT stock‘s performance in recent months has mirrored its operational strength and global expansion strategy. After hitting a 52-week high of ₹1,795.50 in January 2025 and a low of ₹740.05 in April, the stock has rebounded sharply.
In the past one year, the stock has rallied around 41 percent. It has also gained 6 percent in June so far, following a 25.4 percent surge in May. Prior to that, it had seen a marginal correction of 1 percent in April and a 6.4 percent rise in March. The stock had seen sharp declines of 38.4 percent and 10.7 percent in January and February, respectively, but the recent recovery signals renewed investor confidence in its growth trajectory.
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