IT stock skyrockets 12% after reporting 147% YoY growth in net profits

Synopsis: Netweb Technologies India Limited reports 165.02% QoQ revenue growth and a 146.67% YoY net profit surge in Q3 FY26 results.

This Small-cap IT Stock, engaged in designing, manufacturing, and selling high-performance computing systems, AI solutions, and data center infrastructure for diverse industries, jumped 11.91 percent after the company reported strong December quarterly results with an 165.02 percent revenue growth and 146.67 percent profit growth.

With a market capitalization of Rs. 19,857.75 crores, the share of Netweb Technologies India Limited has reached an intraday high of Rs. 3,750 per equity share, rising nearly 11.91 percent from its previous day’s close price of Rs. 3,351.05. Since then, the stock has retreated and is currently trading at Rs. 3,505.10 per equity share. 

Q3 FY26 Result

Coming into the quarterly results of Netweb Technologies India Limited, the company’s consolidated revenue from operations increased by 141 percent YOY, from Rs. 333.99 crore in Q3 FY25 to Rs. 804.93 crore in Q3 FY26, and grew by 165.02 percent QoQ from Rs. 303.72 crore in Q2 FY26.

Netweb Technologies India Limited is reporting an Operating EBITDA of Rs. 97.95 crore, registering a robust year-on-year growth of 127.1 percent. During the quarter, AI Systems emerged as the key growth driver, contributing 64.2 percent of revenue in Q3 FY26 and 47.6 percent in 9M FY26.

In Q3 FY26, the company also successfully executed a large strategic order worth Rs. 450.39 crore, reinforcing its leadership position as India’s largest OEM in high-end computing solutions.

In Q3 FY26, Netweb Technologies India Limited’s consolidated net profit increased by 146.67 percent YOY, reaching Rs. 73.31 crore compared to Rs. 29.72 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 133.25 percent, from Rs. 31.43 crore.

The basic earnings per share increased by 145.54 percent and stood at Rs. 12.94 as against Rs. 5.27 recorded in the same quarter in the previous year, FY2025.

Netweb Technologies India Limited’s revenue and net profit have grown at a CAGR of 49.09 percent and 95.42 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 32.4 percent and 23.9 percent, respectively. Netweb Technologies India Limited has an earnings per share (EPS) of Rs. 31.4, and its debt-to-equity ratio is 31.4x.

Revenue Segment (9M FY26)

Netweb Technologies India Limited’s 9MFY26 revenue was led by AI Systems, contributing 48 percent, followed by Supercomputing or HPC Systems at 22 percent and Private Cloud & HCI at 22 percent. 

The remaining revenue came from HPS solutions (2 percent), Data centre servers (1 percent), Software & services for HCS offerings (3 percent), and Spares & others (2 percent), reflecting a diversified technology-led revenue mix.

Client Base

Netweb Technologies India Limited serves a wide and diversified customer base that includes premier higher education and research institutions such as IISc, IITs, IIIT, C-DAC, and IISER Pune. 

The company’s IT & ITES customers include Zoho, Infosys, Yotta, and E2E Cloud. The company also works with strategic organisations like ISRO and the Ministry of Defence, along with others such as NPCI, UIDAI (Aadhaar), Graviton Research Capital, and NK Securities Research.

Netweb Technologies India Limited was established on September 22, 1999, originally as Netweb Technologies India Private Limited in New Delhi. The company designs, manufactures, and sells high-end computing solutions tailored for India’s growing tech needs. 

The company builds powerful supercomputers for intensive calculations, private clouds, and hyperconverged systems for efficient data management, AI-powered platforms with enterprise workstations for intelligent applications, along with high-performance storage, data center servers, and network switches, all under its Tyrone brand.

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