Netweb Technologies shares soar 13% as Q1 net profit rises 100%; board sets record date for final dividend

Shares of Netweb Technologies soared 12.97% to a day’s high of ₹2,295 apiece on the National Stock Exchange (NSE) on Friday, August 1, a day after the firm reported its first quarter earnings for the 2025-26 financial year (Q1FY26).

The high-end computing solutions provider posted a 100% year-on-year (YoY) increase in its profit after tax (PAT) to ₹30.48 crore in the June quarter of FY26, compared to ₹15.24 crore in the corresponding quarter a year earlier. The profit growth was driven by a robust demand environment for artificial intelligence (AI) technology, Netweb Technologies said in a regulatory filing dated Thursday.

Sequentially, however, the firm’s net profit fell 28.5% quarter-on-quarter (QoQ) from ₹42.61 crore in the Q4FY25.

The company’s revenue from operations surged 101.72% YoY to ₹301.21 crore during the quarter under review, as against a revenue of ₹149.32 crore in the first quarter of FY25. On a QoQ basis, its revenue fell 27.36% from ₹414.65 crore.

At an operational level, Netweb Technologies’ EBITDA (earnings before interest, tax, depreciation and amortisation) stood at ₹44.8 crore in Q1FY26, jumping 127.2% YoY from ₹19.72 crore in the year-ago period. It slipped 28.5% QoQ from ₹59.26 crore in the previous quarter.

While its EBITDA margin expanded by 14 basis points (bps) to 10.1% during the reporting quarter, compared to 9.9% in Q1FY25, it contracted by 13 bps from 10.2% in the March quarter of FY25.

Commenting on the results, Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, said: “In the quarter gone by, we successfully executed a large AI order in the critical defence sector. We firmly believe that a country's defence strength in today’s world is not just defined by its military firepower alone, but increasingly by its technological superiority.”

In Q1 FY26, AI continued to be a major growth driver as it contributed 29% to the company’s operating revenue, with 300% YoY growth.

“This performance reflects our unwavering commitment to in-house design and manufacturing of next-generation systems, in alignment with the ‘Make in India’ vision and contributing meaningfully to India’s emergence as a global hub for high-tech manufacturing,” he added.

During the quarter, the firm launched a unified, composable GPU orchestration platform to allow rapid deployment and optimisation of AI infrastructure, called “Skylus,ai”.

“India’s rapidly evolving AI ecosystem, supported by vibrant research, growing enterprise adoption, and government-led initiatives to develop indigenous large language models (LLMs), presents significant innovation opportunities. Netweb is well-positioned to capitalize on this momentum with a focused approach across its three growth pillars: High Performance Computing (HPC), Private Cloud, and AI Systems,” Lodha further stated.

Board sets record date for final dividend

Netweb’s board of directors also fixed August 22, 2025, as the record date for determining the entitlement of members to the final dividend of ₹2.5 per share (125% of the face value) for FY25, if declared.

Furthermore, its board also set August 22 as the cut-off date for determining the members eligible to vote on the resolutions for the 26th Annual General Meeting (AGM).

Netweb stock was trading 7.55% higher at ₹2,184.8 per equity share, as of 12:30 pm.

The IT company has a total market capitalisation of ₹12,378.87 crore, as of August 1, 2025, as per data on the NSE.