Order Book Or Contract Wins
Expected: FY26-FY27HIGH confidence
What: Strategic Order Book: ₹17,336 million
“Our order book is very robust with organic order book at 5,258 million and strategic order book at 17,336 million.”
Netweb Technologies India Ltd: Why Is It Outperforming Nifty 500?
ActiveRS +43.1%Weak4w Streak
In , Netweb Technologies India Ltd (Data Centre) is outperforming Nifty 500 with +43.1% relative strength. Fundamentals: Weak. On a 4-week streak.
Netweb Technologies India Ltd Key Facts
- PE Ratio
- 122.0x
- Market Cap
- ₹25,180 Cr
- PAT Growth YoY
- +65%
- Revenue Growth YoY
- +87%
- OPM
- 12.0%
- RS vs Nifty 500
- +43.1%
PE: At PeakRiding Wave
What's Happening
📊PE near cycle highs — limited room for further expansion
💪Debt reduced 94% YoY — balance sheet strengthening
🌐FII stake decreased 1.3% this quarter
🏛️DII reducing — stake down 2.0%
💰Trading 52% above estimated fair value — significant premium
Earnings Acceleration Triggers
1. Order Book Or Contract Wins
FY26-FY27HIGH
2. Tam Expansion Changing Consumption
OngoingHIGH
3. Regulatory Approval Or License Win
Q4 FY26MEDIUM
Key Risks
1. Shortages and price hikes in memory chips (DRAM/HBM) and flash storage due to gl
MEDIUM2. Currency fluctuations affecting import costs for chipsets
LOWSector-Specific Signals
Total Order Book₹2,259.4 Cr
AI System Revenue Contribution64%
Cash Conversion Cycle69 days
Net Free Cash₹190.1 Cr
Key Numbers
PAT Growth YoY
+65%
Stable
Revenue YoY
+87%
Stable
Operating Margin
12.0%
-200 bps YoY
PE Ratio
122.0
Current Price
₹4,422
Dividend Yield
0.06%
Fundamental Score
30/100
Weak
3Y PAT CAGR
+64%
Market Cap
25.2K Cr
Valuation
Significantly Overvalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Netweb Technologies India Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 19, 2026
Tam Expansion Changing Consumption
Expected: OngoingHIGH confidence
What: AI Segment Contribution: 64%
“AI system segment contributed to 64% of Q3 Financial Year ‘26 revenue... experiencing a strong demand by the rapid acceleration of AI adoption worldwide.”
Regulatory Approval Or License Win
Expected: Q4 FY26MEDIUM confidence
What: PLI Credit: Not Quantified
“is it fair to assume even in 4th Quarter we can have a credit for PLI if government approval comes on within that time? Sanjay Lodha: Looks like.”
Revenue growth of 141% YoY
HIGH confidence
What: Revenue growth of 141% YoY
“Quarterly revenue stood at Rs. 8,049 million... Netweb successfully executed a large strategic order valued at Rs. 4,504 million”
What Are the Key Risks for Netweb Technologies India Ltd?
Earnings deceleration risks from management commentary
Shortages and price hikes in memory chips (DRAM/HBM) and flash storage due to gl
MEDIUMTrigger: Global AI demand is surging, and manufacturing capability is not able to cope up.
Management view: Proactive supply chain planning and long-standing partnerships with key technology providers.
Monitor: commodity
Currency fluctuations affecting import costs for chipsets
LOWTrigger: A significant portion of components are imported.
Impact: PAT impact: ₹2.8 crore MTM gain
Management view: Forward contracts covering 60% of payables.
Monitor: fx
What Is Netweb Technologies India Ltd's Management Saying?
Key quotes from recent conference calls
“We have once again outperformed our stated growth guidance of 35% to 40% CAGR reaffirming our commitment to constantly deliver our promises. [Previous Organic Revenue Growth guidance]”
“Some portion around 1/3 of these orders we expect to be executed in FY '26 because the total order is somewhere around INR2,100 crores approximately. [Previous Strategic Order Execution guidance]”
“At this point of time, for competitive information, we would not like to share our plans on quantum as yet. But definitely, we are working on the background. [Initiative: Quantum Computing]”
“industry is experiencing shortages in flash and memory but we have we manage this challenge effectively through proactive supply chain planning [Risk (commodity): MEDIUM]”
What Did Netweb Technologies India Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹8,049 million
YoY +141%QoQ +165%
Why: The growth was primarily driven by the execution of a large strategic order valued at Rs. 4,504 million during the quarter.
Revenue reached record-breaking levels due to the preponement of a major strategic order into Q3.
EBITDA
₹979 million
YoY +127.1%Margin 12.2%
Why: EBITDA margins were lower than the previous quarter's 15% due to the higher mix of large strategic orders which carry lower margins.
While absolute EBITDA grew, margins compressed by 280 bps QoQ as guided for large-scale orders.
PAT
₹733 million
YoY +146.7%QoQ +133.2%
Why: Profit growth followed the massive revenue surge from strategic order execution despite the lower operating margins.
PAT margins stood at 9%, slightly below the 10.3% reported in Q2 FY26.
Other Highlights
• Cash conversion cycle improved to 69 days from 120 days in the previous quarter.
• Net free cash stood at ₹1,900.8 million as of December 31, 2025.
• AI system segment contributed 64% of Q3 FY26 revenue.
What Sector Metrics Matter for Netweb Technologies India Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Total Order Book
₹2,259.4 Cr
Why: Includes ₹525.8 Cr organic and ₹1,733.6 Cr strategic orders.
AI System Revenue Contribution
64%
QoQ +38.6%
Why: Driven by the execution of the ₹450.4 Cr strategic AI order.
Cash Conversion Cycle
69 days
QoQ -51 days
Why: Significant improvement compared to 120 days in the previous quarter.
Net Free Cash
₹190.1 Cr
QoQ -₹47.9 Cr
Why: Cash used for working capital in executing large orders.
R&D Spend % of Sales
3%
YoY 0%QoQ 0%
Why: Maintained as a standard practice for in-house design.
Total Headcount
600+
Why: Increased from 240 at the time of IPO to support growth.
R&D Team Size
100+
Why: Focused on both software and hardware design.
Inventory Days
60 days
QoQ -12 days
Why: Inventory maintained for upcoming orders and critical component stocking.
What Is Netweb Technologies India Ltd's Management Guidance?
Forward-looking targets from management for Next 2-3 years
Revenue Growth Target
30%
OPM Guidance
13–14%
Revenue Outlook
30% to 40% CAGR
Margin Outlook
REAFFIRMED
Management Tone: BULLISH
Guidance Changes
LOWERED
EBITDA Margin: 14% to 15% → 13% to 14%
How Fast Is Netweb Technologies India Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +87% | +70% | Stable |
| PAT (Net Profit) | +65% | +64% | Stable |
| OPM | 12.0% | -200 bps | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 19, 2026.
Other Top Data Centre Stocks Beating Nifty 500
Frequently Asked Questions: Netweb Technologies India Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What were Netweb Technologies India Ltd's latest quarterly results?
Netweb Technologies India Ltd's latest quarterly results (Mar 2026) show
- PAT Growth YoY: +65.1% (stable)
- Revenue Growth YoY: +86.5%
- Operating Margin: 12.0% (stable)
Is Netweb Technologies India Ltd's profit growing or declining?
Netweb Technologies India Ltd's profit is growing with an stable trend.
- PAT Growth YoY: +65.1% (latest quarter)
- PAT Growth QoQ: -2.7% (sequential)
- 3-Year PAT CAGR: +63.6%
- Trend: Stable — consistent growth pattern
What is Netweb Technologies India Ltd's revenue growth trend?
Netweb Technologies India Ltd's revenue growth trend is stable.
- Revenue Growth YoY: +86.5%
- Revenue Growth QoQ: -3.9% (sequential)
- 3-Year Revenue CAGR: +69.9%
How is Netweb Technologies India Ltd's operating margin trending?
Netweb Technologies India Ltd's operating margin is stable.
- Current OPM: 12.0%
- OPM Change YoY: -2.0% basis points
- OPM Change QoQ: 0.0% basis points
What is Netweb Technologies India Ltd's 3-year profit and revenue CAGR?
Netweb Technologies India Ltd's long-term compounding rates
- 3-Year Profit CAGR: +63.6%
- 3-Year Revenue CAGR: +69.9%
Is Netweb Technologies India Ltd's growth accelerating or decelerating?
Netweb Technologies India Ltd's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: -34.9% bps
- Sequential Acceleration: -52.7% bps
What is Netweb Technologies India Ltd's trailing twelve month (TTM) performance?
Netweb Technologies India Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹205 Cr
- TTM PAT Growth: +79.8% YoY
- TTM Revenue: ₹2,000 Cr
- TTM Revenue Growth: +90.1% YoY
- TTM Operating Margin: 12.8%
Is Netweb Technologies India Ltd overvalued or undervalued?
Netweb Technologies India Ltd appears significantly overvalued based on our fair value analysis.
- Valuation Signal: Significantly Overvalued
- Current PE: 122.0x
- Price-to-Book: 34.8x
What is Netweb Technologies India Ltd's current PE ratio?
Netweb Technologies India Ltd's current PE ratio is 122.0x.
- Current PE: 122.0x
- Market Cap: 25.2K Cr
- Dividend Yield: 0.06%
How does Netweb Technologies India Ltd's valuation compare to its history?
Netweb Technologies India Ltd's current PE is 122.0x.
- Current PE: 122.0x
- Valuation Assessment: Significantly Overvalued
What is Netweb Technologies India Ltd's price-to-book ratio?
Netweb Technologies India Ltd's price-to-book ratio is 34.8x.
- Price-to-Book (P/B): 34.8x
- Book Value per Share: ₹127
- Current Price: ₹4422
Is Netweb Technologies India Ltd a fundamentally strong company?
Netweb Technologies India Ltd is rated Weak with a fundamental score of 30/100. This score is calculated from objective financial metrics
- Revenue Growth YoY: +86.5% (10% weight)
- PAT Growth YoY: +65.1% (10% weight)
- PAT Growth QoQ: -2.7% (10% weight)
- Margins stable (10% weight)
Is Netweb Technologies India Ltd debt free?
Netweb Technologies India Ltd has a debt-to-equity ratio of N/A.
- Total Debt: ₹282 Cr
What is Netweb Technologies India Ltd's return on equity (ROE) and ROCE?
Netweb Technologies India Ltd's return ratios over recent years
- FY2024: ROCE 38.0%
- FY2025: ROCE 32.0%
- FY2026: ROCE 38.0%
Is Netweb Technologies India Ltd's cash flow positive?
Netweb Technologies India Ltd's operating cash flow is positive (FY2026).
- Cash from Operations (CFO): ₹171 Cr
- Free Cash Flow (FCF): ₹-45 Cr
- CFO/PAT Ratio: 83% (strong cash conversion)
What is Netweb Technologies India Ltd's dividend yield?
Netweb Technologies India Ltd's current dividend yield is 0.06%.
- Dividend Yield: 0.06%
- Current Price: ₹4422
Who holds Netweb Technologies India Ltd shares — promoters, FII, DII?
Netweb Technologies India Ltd's shareholding pattern (Mar 2026)
- Promoters: 67.0%
- FII (Foreign): 9.3%
- DII (Domestic): 4.7%
- Public: 19.0%
Is promoter holding increasing or decreasing in Netweb Technologies India Ltd?
Netweb Technologies India Ltd's promoter holding has decreased recently.
- Current Promoter Holding: 67.0% (Mar 2026)
- Previous Quarter: 71.0% (Dec 2025)
- Change: -4.02% (decreasing — worth monitoring)
How long has Netweb Technologies India Ltd been outperforming Nifty 500?
Netweb Technologies India Ltd has been outperforming Nifty 500 for 4 consecutive weeks, indicating building momentum.
Is Netweb Technologies India Ltd a new momentum entry or an established outperformer?
Netweb Technologies India Ltd is an established outperformer with 4 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Netweb Technologies India Ltd?
Netweb Technologies India Ltd has 4 key growth catalysts identified from recent earnings analysis
- Order Book Or Contract Wins — Execution of the massive strategic order book will drive top-line growth.
- Tam Expansion Changing Consumption — Rapid acceleration of AI adoption worldwide is creating massive demand for compute infrastructure.
- Regulatory Approval Or License Win — Potential for government approval of PLI credits in the final quarter.
- Revenue growth of 141% YoY — Execution of a large strategic order valued at ₹4,504 million was pulled forward into Q3.
What are the key risks in Netweb Technologies India Ltd?
Netweb Technologies India Ltd has 2 key risks worth monitoring
- [MEDIUM] Shortages and price hikes in memory chips (DRAM/HBM) and flash storage due to gl — Global AI demand is surging, and manufacturing capability is not able to cope up.
- [LOW] Currency fluctuations affecting import costs for chipsets — A significant portion of components are imported.
What did Netweb Technologies India Ltd's management say in the latest earnings call?
In Q3 FY26, Netweb Technologies India Ltd's management highlighted
- "We have once again outperformed our stated growth guidance of 35% to 40% CAGR reaffirming our commitment to constantly deliver our promises. [Previou..."
- "Some portion around 1/3 of these orders we expect to be executed in FY '26 because the total order is somewhere around INR2,100 crores approximately. ..."
- "At this point of time, for competitive information, we would not like to share our plans on quantum as yet. But definitely, we are working on the back..."
What is Netweb Technologies India Ltd's management guidance for growth?
Netweb Technologies India Ltd's management has provided the following forward guidance for Next 2-3 years
- Revenue growth target: 30%
- OPM guidance: 13–14%
- Capex plan: null for No additional CAPEX required
- Management tone: bullish
- Milestone: [LOWERED] EBITDA Margin: 14% to 15% → 13% to 14%
What sector-specific metrics matter most for Netweb Technologies India Ltd?
Netweb Technologies India Ltd's most important sub-sector-specific KPIs from the latest concall
- Total Order Book: ₹2,259.4 Cr — Includes ₹525.8 Cr organic and ₹1,733.6 Cr strategic orders.
- AI System Revenue Contribution: 64% (QoQ +38.6%) — Driven by the execution of the ₹450.4 Cr strategic AI order.
- Cash Conversion Cycle: 69 days (QoQ -51 days) — Significant improvement compared to 120 days in the previous quarter.
- Net Free Cash: ₹190.1 Cr (QoQ -₹47.9 Cr) — Cash used for working capital in executing large orders.
- R&D Spend % of Sales: 3% (YoY 0%) (QoQ 0%) — Maintained as a standard practice for in-house design.
- Total Headcount: 600+ — Increased from 240 at the time of IPO to support growth.
Is Netweb Technologies India Ltd worth studying for long term investment?
Based on quantitative research signals, here is why Netweb Technologies India Ltd may be worth studying
- Earnings growing at +65.1% YoY
- Cash flow is positive — CFO ₹171 Cr
What is the investment thesis for Netweb Technologies India Ltd?
Netweb Technologies India Ltd investment thesis summary:
Research Signals (Bull Case)
- Revenue growing at +86.5% YoY
- Growth catalyst: Order Book Or Contract Wins
Risk Factors (Bear Case)
- Appears significantly overvalued
- Key risk: Shortages and price hikes in memory chips (DRAM/HBM) and flash storage due to gl
What is the future outlook for Netweb Technologies India Ltd?
Netweb Technologies India Ltd's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: stable
- Margin Trend: stable
- Valuation: Significantly Overvalued
- Key Catalyst: Order Book Or Contract Wins
- Key Risk: Shortages and price hikes in memory chips (DRAM/HBM) and flash storage due to gl
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.