Rs 5 Dividend Announced: IT Stock Shows Double-Digit Growth In Revenue & Profit For FY25; Share Price Target?

With native process automation, content services, customer interaction, and AI/ML capabilities, Newgen Software Technologies Ltd. is a top supplier of an AI-first unified digital transformation platform. During its Board Meeting on May 2, 2025, the management of Newgen Software Technologies Ltd. presented the results for the year and quarter ending March 31, 2025. Revenues for the quarter exceeded Rs 400 cr for the first time, and the company reported double-digit growth in both revenue and profit for FY25. Additionally, a dividend recommendation was made.

Newgen Software Technologies Dividend

The Board of Directors "Recommended a final dividend of Rs. 5/- (five) per equity share (on face value of Rs. 10/- each) i.e. 50% on a face value of Rs. 10/- per share, for the year ended 31st March 2025 subject to the approval of the Shareholders at the forthcoming Annual General Meeting," said Newgen Software Technologies in a stock exchange filing.

"Record date for the purpose of determining the name of Members for entitlement of dividend, if declared, at the ensuing AGM of the Company, will be Friday, 18th July 2025," the IT company further informed stock exchanges.

Newgen Software Technologies Q4 Results

While the company's profit after tax was Rs 108 crores for the quarter, its revenue from operations was consolidated at Rs 430 crores in Q4FY25, up 15% from Q4 FY'24's Rs 375 crores. Consolidated revenue from operations increased by 20% YoY to Rs 1,487 crore in FY25 from Rs 1,244 crore in FY24. In FY25, profit after tax was Rs 315 crore, a 25% YoY growth over FY24's Rs 252 crore.

Mr. Diwakar Nigam, Chairman & Managing Director, Newgen Software Technologies Ltd. said - "FY'25 was a year of healthy revenue growth and margin expansion for Newgen. Growth was driven by strong license and implementation revenues across markets. Our large customer base, with billing of over Rs 5 crores, increased to 87 customers from 65 customers last year. The quarter specifically witnessed strong growth and deal wins in the US region. Looking ahead, we see strong momentum building across our business and are energized by the growth prospects ahead"

"Newgen continues to accelerate its AI-first strategy with significant investments in AI-driven products and solutions. This year, we have launched groundbreaking AI agents - Lumyn, Harper, and Marvin - which have already demonstrated their potential through several promising and viable use cases. We anticipate further growth and innovation in AI-led journeys as we build upon these successes." said Mr. Virender Jeet, CEO, Newgen Software.

Newgen Software Technologies Share Price Target

"Newgen is currently moving sideways in a range of ₹980-₹1020, with a slightly bullish tone. The trend will turn strongly positive only if the stock breaks above ₹1025 with volume. Support lies at ₹975, and the broader structure remains healthy above this. The RSI is neutral, but long-term charts suggest accumulation. If the stock crosses ₹1025, it can rally toward ₹1075-₹1100. Till then, it may continue consolidating. Traders can wait for a breakout or buy near ₹980 with a tight stop loss," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

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