Netweb Technologies share price surges 12.5% as Q1 net profit doubles; trades 350% above IPO price
On Thursday, the company reported over a 100% jump in profit after tax to ₹ 30.5 crore in Q1FY26, driven by robust demand for artificial intelligence (AI) technologies. Operating income more than doubled to ₹ 301.21 crore from ₹ 149.3 crore in the June 2024 quarter. EBITDA surged 127% to ₹ 44 crore, with margins expanding by 167 basis points to 14.9% during the reporting quarter.
AI remained a major growth driver, contributing 29% to operating revenue with 300% YoY growth. Reinforcing its progress in this space, the company launched Skylus.ai in FY25—a unified, composable GPU orchestration platform designed for rapid deployment and optimization of AI infrastructure. Netweb said Skylus.ai strengthens its AI capabilities and supports India's vision of becoming the 'AI factory of the world.'
During the quarter, the company successfully executed a large AI order in the critical defense sector, emphasizing that a country's defense strength today is defined not only by military power but increasingly by technological superiority.
Commenting on the results, Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, said the strong performance reflects the company's commitment to in-house design and manufacturing of next-generation systems. This aligns with the 'Make in India' vision and contributes to India's emergence as a global hub for high-tech manufacturing.
Lodha further added that India's rapidly evolving AI ecosystem—driven 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
After hitting an all-time high of ₹ 3,060 in November last year, shares of Netweb came under pressure in subsequent months before rebounding in May with a 42% gain. The rally extended into the following months, trimming the stock's year-to-date losses to 16%.
For long-term investors, the company has delivered stellar returns, surging 170% over the last two years. Since its IPO price of ₹ 500, the stock is currently trading 357% higher, rewarding those who have held it since its debut in July 2023.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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