Newgen Software Faces Profit Decline Amid Labour Code Impact

Newgen Software Technologies reported a 29.42% decrease in net profit for the December quarter, largely due to new Labour Codes. The firm noted a one-time Rs 35 crore provision due to these regulations. Revenue saw a 5% increase, driven by subscription growth in international markets.

Newgen Software Technologies, an IT firm based in New Delhi, has announced a significant 29.42% decline in its net profit for the quarter ending December. The company attributed this downturn to the new Labour Codes, which required a one-time provision of Rs 35 crore, affecting overall profitability.

Despite the impact of the newly implemented labour regulations, Newgen's revenue from operations increased by 5%, reaching Rs 400.27 crore in the third quarter of fiscal year 2026. This is an improvement over the Rs 381.11 crore recorded in the same quarter of the previous fiscal year.

Diwakar Nigam, Chairman and Managing Director, highlighted robust subscription-led growth in international markets, naming the US, UK, and Australia as key contributors. The company also added 34 new clients, underscoring global trust in its platform despite the challenges presented by regulatory changes.

(With inputs from agencies.)