Netweb Technologies shares down 5% despite healthy growth in Q2 earnings; here's why the stock is falling today

Netweb Technologies shares reversed their early market gains on Monday, October 26, as investors booked profits, focusing on the IT services company’s shrinking profit margins and flat EBITDA margin growth despite a healthy profit and revenue increase in the period under review.

After the opening bell, Netweb Technologies shares surged 4.5% to touch an early market high of ₹4,534.80 apiece on Monday’s market, in comparison to ₹4,335.80 apiece at the previous equity market close.

Trendlyne data showed that the trading activity surged past 3 million equity shares across NSE and BSE combined, triggering the high-volume movement as of the noon deals on the market.

However, as per NSE data, the company’s stock lost 5.2% to touch an intraday low of ₹4,106.10 apiece, retreating from the day-high levels on October 26, in comparison to the previous market close.

Investors were reacting to the Q2 earnings momentum on Monday, as the company filed its July to September quarter earnings report with the exchanges over the weekend on Saturday, October 24.

A deeper dive into the financials showed that although the headline numbers showed a healthy earnings performance, the company's margins remained under pressure with rallying input costs and flat EBITDA growth in the period.

Why were Netweb shares falling today?

Netweb Technologies shares were falling on Monday’s market as investors booked their initial profits while focusing on the margins under pressure in the July to September quarter of FY27.

Data showed that the company’s net profit margins witnessed a 9-basis-point contraction year-on-year, and an 8-basis-point decline sequentially to 10.3% levels in the September quarter.

While the company’s operating profit or earnings before interest, tax, depreciation, and amortisation (EBITDA) improved 63% QoQ to ₹197 crore, Netweb Technologies’ EBITDA margins witnessed flat growth.

EBITDA margins expanded 17 basis points to 14.90% in Q2 FY27, in comparison to 14.73% in the first quarter of FY27.

The company’s cost of raw materials increased 124% sequentially to ₹1,668.04 crore in the September quarter, in comparison to ₹743.27 crore in the previous quarter of the current fiscal year.

“Our active pipeline of ₹1,11,518 million provides significant visibility into potential business opportunities and reinforces our confidence in the growth outlook,” said Sanjay Lodha, Chairman and Managing Director of Netweb Technologies.

The company’s management cited strong execution and operational discipline as the key growth momentum providers amid rising demand for high-performance computing and AI infrastructure in the market.

Profit rises 60% QoQ

The Q2 financials showed that Netweb Technologies’ net profit surged 60% quarter-on-quarter (QoQ) to ₹137 crore, in comparison to ₹85 crore in the same period a year earlier. On a yearly basis, the profits have skyrocketed 334% in the September quarter.

Netweb’s revenue from core operations rallied 335% year-on-year (YoY) to September quarter levels, from ₹304 crore in the same quarter of the previous financial year.

On a sequential basis, the company's revenues advanced 61% to ₹1,323 crore in the second quarter of FY27, in comparison to ₹820 crore in the first quarter of FY27.

Netweb Technologies share price

NSE data showed that Netweb Technologies shares have delivered more than 455% returns to their investors in the last three years, and have gained nearly 12% in the past one-year period.

On a year-to-date (YTD) basis, the company’s stock has gained 35% so far in 2026.

However, in the near term, the stock has lost 8.4% in the past month and has declined 11.4% in the last five market sessions, according to the exchange data.

Shares of Netweb Technologies gained to hit a 52-week high of ₹5,813 apiece on August 24, 2026, while the 52-week low was at ₹2,920 apiece on December 5, 2025.

The IT services company’s market capitalisation (m-cap) was at ₹25,242 crore as of the trading session on Monday, October 26, 2026.