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%.

Disclaimer:

The information available on this article is provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner. We do not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information provided on this website.

Copyright 2025 Krish Capital Pty. Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.