Synopsis:
Company’s AI segment drove 29% of Q1 revenue with 300% YoY growth; management raised FY26 AI guidance and sees strong order pipeline sustaining future momentum.
A leading innovator in high-performance computing and AI infrastructure solutions, this company is renowned for enabling advanced technology adoption across industries. In this article, we explore its remarkable first-quarter results, where the AI segment fueled 29% of revenue with a 300% year-on-year surge, and examine the uplifted outlook for FY26.
Netweb Technologies India Limited‘s stock, with a market capitalisation of Rs. 11,906 crores, fell to Rs. 2,086 , hitting the a low of up to 2.83 percent from its previous closing price of Rs. 2,146.80 . Furthermore, the stock over the past year has given a negative return of 7.3 percent.
Management Guidance
AI Growth: Artificial intelligence (AI) has become a major revenue driver, now accounting for 29% of the company’s operating income in the first quarter, representing an impressive 300% growth compared to the same period last year.
Due to strong momentum in this segment, management has increased their future projections, raising the AI revenue share guidance for FY26 from 20% to 22%. This comes after a significant jump, with AI rising from just 7% of the business a few years ago to 15% last year and now growing even further.
High-Performance Computing & Private Cloud Expansion: The high-performance computing (HPC) and private cloud business continues to make up around 35% of total revenue a stable share over time.
While this area is still primarily driven by government projects (making up 70–75% of the demand), there is a noticeable rise in adoption from commercial enterprises in sectors like oil and gas, consumer durables, and automobile manufacturing, signaling broader future growth opportunities.
Strong Order Book: As of Q1 FY26, the company’s order book stands at Rs. 230 crore, with an additional Rs. 460 crore in L1 orders, bringing the total to over Rs. 600 crore. The future pipeline looks robust as well, with about Rs. 4,000 crore in potential orders that are expected to convert within 6 to 18 months.
The company highlights that its business depends largely on this pipeline, as the order book itself only provides modest visibility due to quick closure cycles. Management remains confident, maintaining a guidance of 35–40% revenue growth for FY26, consistent with their strong track record of delivering around 40% annual growth since their market listing.
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Q1 Financial Update
In Q1FY26, the company reported revenue of Rs. 301 crore, up sharply by 102% year-on-year (YoY) compared to Rs. 149 crore in Q1FY25. However, revenue fell 27.5% quarter-on-quarter (QoQ) from Rs. 415 crore in Q4FY25. Three-year sales CAGR stands impressively at 67%, indicating strong long-term growth momentum.
Profit after tax for Q1FY26 doubled YoY to Rs. 30 crore against Rs. 15 crore in Q1FY25, but declined 30% QoQ from Rs. 43 crore in Q4FY25. The three-year profit CAGR is 72%, and the three-year return on equity CAGR remains robust at 29%. This performance highlights outstanding YoY expansion but demonstrates a slowdown on a sequential basis.
Written By Fazal Ul Vahab C H
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