India's Newgen Technologies snaps losing streak on Jefferies upgrade

Newgen Technologies

21/01/2026 04:24

**Shares of Newgen Software Technologies NEWG.NS rise as much as 4.7% to 658.15 rupees; set to snap 8 days of loss

**Software solutions provider's shares slumped 14.5% on Tuesday after it posted consolidated net profit of 628.2 million rupees; 29.4% lower year-on-year

**Jefferies upgrades stock to "Buy" from "Underperform" as it says growth pressures are priced in after a 60% drop in last 12 months

** License sales have declined in FY26 on a high base and should normalize in  FY27

**Brokerage says AI-driven productivity could boost margins; says co's expects GenAI to deliver 20-30% productivity gains in software engineering over the next 2-3 years, which should help lower costs

**Stock fell 50.3% in 2025

(Reporting by Mridula Kumar in Bengaluru)

((Mridula.Kumar@thomsonreuters.com;))