Highlights

• ICICI Securities issued a Buy rating on Netweb with a target price of ₹4,150 following Q3 FY26 earnings.
• Newgen Software received a Hold rating from ICICI Securities with a target price of ₹660 after its 9M FY26 results.
• Netweb reported triple-digit year-on-year growth across revenue, EBITDA, and PAT, while Newgen posted mid-single-digit growth in revenue and profit.

Brokerage commentary has turned selective following the latest earnings announcements from Netweb Technologies India Ltd (NSE:NETWEB) and Newgen Software Technologies Ltd. (NSE:NEWGEN). ICICI Securities Limited has issued differing recommendations for the two technology-focused companies, assigning a Buy rating to Netweb while maintaining a Hold stance on Newgen. The views follow the release of their respective Q3 and nine-month FY26 financial results, which outlined revenue trends, profitability metrics, and segment-level performance.

Netweb Technologies: ICICI Securities Assigns Buy Rating

Netweb Technologies was trading at ₹3,115 on 21 January at 11:22 am, down 3.70% during the session. Following the announcement of its Q3 FY26 results, ICICI Securities Limited issued a Buy rating on the stock, with a target price of ₹4,150.

For the quarter ended December 2025, Netweb reported operating income of ₹8,049.3 million, marking a year-on-year growth of 141%. Operating EBITDA rose 127.1% year-on-year to ₹979.5 million, with EBITDA margin recorded at 12.2%. Profit after tax for the quarter stood at ₹733.1 million, registering a 146.7% increase over Q3 FY25, while PAT margin was reported at 9.0%.

The company also reported net debt of ₹(1,900.8) million as of December 2025. Netweb continues to operate as an Indian-origin OEM in high-end computing solutions, serving sectors such as IT, BFSI, national data centres, defence, education, and research institutions.

Newgen Software: ICICI Maintains Hold Rating

Newgen Software was trading at ₹635.30 at 11:23 am on 21 January, up 1.09% intraday. ICICI Securities maintained a Hold rating on the stock, with a target price of ₹660, following the company’s latest quarterly and nine-month performance update.

For the nine months ended FY26, Newgen reported consolidated revenue of ₹1,122 crore, up 6% year-on-year from ₹1,057 crore in the corresponding period last year. Adjusted profit after tax for the nine-month period stood at ₹222 crore, reflecting a 7% year-on-year increase.

Annuity revenue streams, including ATS/AMC, support services, and cloud/SaaS and subscription licenses, contributed ₹706 crore. Subscription revenue rose 23% year-on-year to ₹382 crore, while the SaaS component recorded 33% growth year-on-year.

Quarterly Performance and Revenue Mix

During Q3 FY26, Newgen’s consolidated revenue from operations stood at ₹400 crore, compared to ₹381 crore in Q3 FY25, marking a 5% year-on-year increase. Annuity revenues during the quarter were reported at ₹250 crore. Subscription revenues reached ₹134 crore, up 29% year-on-year, while the SaaS segment grew 48% year-on-year. Adjusted profit after tax for the quarter stood at ₹90 crore, with a PAT margin of 22.5%.