Netweb Technologies India Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Netweb Technologies India Ltd trades at ₹5,027, in a confirmed uptrend and 56 weeks into that stage. That is +23.4% against its own 200-day average. It sits at 78% of a 52-week range of ₹3,024 to ₹5,601. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 6 straight weeks.

Today the stock is in a confirmed uptrend — week 56 of stage 2, confirmed. At ₹5,027 it trades +23.4% versus its 200-day average and sits at 78% of its 52-week range (₹3,024–₹5,601).

Against the market, two honest reads. Cumulative: over the last 3.1 years the stock moved +460% while the NIFTY 500 moved +36% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 6 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Story check

Netweb Technologies India Ltd's story is not scored yet against the markers our research file set on 17 May 2026. Where it sits in its own cycle: EXPANDING_MID_STAGE. Still open: FY26 strategic execution missed by Rs 144 Cr (58% of target) without acknowledgment; Rs 1,600 Cr phased over 3 quarters FY27 carries same risk if Q1 FY27 revenue disappoints.

Our read, 17 May 2026. India's only full-stack sovereign AI infrastructure vendor entering FY27 with order book exceeding prior year revenue — but lumpy execution and management credibility gaps cap the multiple.

What is proven. India's only full-stack sovereign AI infrastructure vendor entering FY27 with order book exceeding prior year revenue — but lumpy execution and management credibility gaps cap the multiple.

What is not proven yet. FY26 strategic execution missed by Rs 144 Cr (58% of target) without acknowledgment; Rs 1,600 Cr phased over 3 quarters FY27 carries same risk if Q1 FY27 revenue disappoints.

The test written in advance. Strategic Order Execution Slippage — Strategic Order Execution Slippage Q1 FY27 revenue vs implied Rs 600-700 Cr quarterly run-rate for 35-40% growth by the next result.

The test written in advance. Revenue Lumpiness and Quarterly Volatility — Revenue Lumpiness and Quarterly Volatility Standard deviation of quarterly revenues; management tone on Q1 FY27 guidance vs actuals by the next result.

The test written in advance. Valuation Premium — Near-Peak PE — Valuation Premium — Near-Peak PE Any guidance cut by management or quarterly revenue shortfall vs implied 35-40% run-rate by the next result.

What the company does. FY26 closed with revenue +90%, PAT +81%, order book Rs 2,400 cr entering FY27 (exceeding FY26 total revenue), AI segment surging 460% to 43% of mix — structural inflection, not cycle. PE at 67th percentile of own history (near-peak) with FII selling — market has already priced much of the story; multiple expansion requires execution delivery, not narrative. Three management consistency failures in 4 quarters (strategic order target missed, pipeline window tripled, lumpiness denial) mean the 35-40% FY27 guide must be discounted until Q1-Q2 FY27 actuals confirm.

Lever 1 · Operating leverage — BUILDING. AI segment grew 460% YoY in FY26 to 43% of revenue; India AI Mission GPU allocations scaling from 10,000 to 100,000+; management sees 18-24 months of sustained demand with no visible supply fulfillment capacity across India. What proves it keeps working: AI Segment Dominance and Sovereign Compute Tailwind. It stops working if Q1 FY27 revenue vs implied Rs 600-700 Cr quarterly run-rate for 35-40% growth.

Lever 6 · Order-book wins — BUILDING. Entering FY27 with Rs 2,400 Cr firm + L1 order book exceeding FY26 total revenue; strategic Rs 1,600 Cr phasing over three quarters provides multi-quarter visibility. What proves it keeps working: Order Book Backlog — FY27 Revenue Visibility. It stops working if Q1 FY27 revenue vs implied Rs 600-700 Cr quarterly run-rate for 35-40% growth.

Lever 2 · Value-added mix — BUILDING. HPC grew 31% YoY in FY26 despite being diluted to 24% of mix by AI; NSM 2.0 and enterprise adoption of high-performance R&D infrastructure sustain independent growth. What proves it keeps working: HPC and Private Cloud Sustained Growth. It stops working if Q1 FY27 revenue vs implied Rs 600-700 Cr quarterly run-rate for 35-40% growth.

Lever 8 · Demerger or value unlock — BUILDING. Rs 20-25 Cr FY27 maintenance capex supports Rs 3,000 Cr+ revenue; 33.2x gross fixed asset turnover; existing capacity sufficient through 35-40% growth without expansion. What proves it keeps working: Asset-Light Operating Leverage. It stops working if Q1 FY27 revenue vs implied Rs 600-700 Cr quarterly run-rate for 35-40% growth.

Sources: our stock research file (17 May 2026) · quarterly results through Jun 26 · the company’s own earnings calls. The story check is re-scored every results season; the record below never changes.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Netweb Technologies India Ltd reported ₹820 Cr of revenue in the Jun 26 quarter, +172.4% year on year. That is the 12th straight quarter of year-on-year growth. Over 7 years it has compounded at 49.6% a year. The last full year, FY26, came in at ₹2,184 Cr. The last four reported quarters add to ₹2,703 Cr.

Why this happened. On the first day of FY27, Netweb had on its books more than it built in all of FY26. The order book composition: Rs 1,600 Cr strategic (phase-wise 3 quarters), Rs 472 Cr organic firm, Rs 327 Cr L1 organic. The organic order book alone supports 30-35% CAGR independent of strategic order pacing. Cash conversion cycle target 80-110 days (current 84 days) with receivables improving from 114 to 86 days reflects traction. The Rs 4,400 Cr organic pipeline at 60% conversion (18-24 month window — extended from 6-18 months) provides longer-dated visibility but with less certainty on timing.

FY26 revenue came in at ₹2,184 Cr (+90.1% on the year), capping 7 years at 49.6% compound. The latest quarter (Jun 26) printed ₹820 Cr, +172.4% year on year — the 12th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +105.3% growth against the decade's 49.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +107.8% over the last 4 quarters against +82.3%/yr over the last 8 — accelerating; TTM profit +101.6% vs +73.9%/yr — accelerating.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Netweb Technologies India Ltd's operating margin is 15.0% in the Jun 26 quarter, +0.0 percentage points against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 5.0% to 16.0%. The current quarter sits inside that band.

Why this happened. The structural inflection is real. FY26 AI segment revenue surged 459.6% YoY, reaching 43.4% of total revenue. The government procurement pipeline has two distinct channels that are both active: CSP-based GPU rental (already commenced) and direct on-premise government data center infrastructure (Rs 4,500 Cr allocation yet to be fully tendered). Multiple demand drivers converge: government (sovereign AI), Neocloud providers (Yotta), enterprises, and GSPs (TCS, Infosys, Wipro) all expanding. Netweb is India's only full-stack domestic manufacturer positioned to capture all channels. The 18-24 month demand visibility claim is anchored in the Rs 2,400 Cr order book (>FY26 revenue) plus the Rs…

The latest quarter's operating margin is 15.0%, +0.0 pp against the same quarter a year ago. Across 8 fiscal years the operating margin has ranged 5.0%–16.0%.

🚨 Why the margin moved: operating margin went −0.2 pp year on year while gross margin went −4.5 pp — the loss came mostly from the gross line: input costs and pricing.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Netweb Technologies India Ltd earned ₹85.0 Cr of net profit in the Jun 26 quarter, +183.3% year on year. It is the 12th consecutive quarter of growth. Full-year FY26 profit was ₹206 Cr. The 7-year compound rate is 83.0%. That is 10.4% of the quarter's revenue. The same quarter a year earlier earned ₹30.0 Cr.

Jun 26 profit was ₹85.0 Cr, +183.3% year on year — the 12th consecutive quarter of growth. On the full year, FY26 printed ₹206 Cr (+80.7%), and the 7-year compound rate is 83.0%.

Why profit moved: revenue contributed +172.4% and the margin +0.0 pp — the quarter was revenue-led, with the margin roughly flat.

Pace comparison, last four quarters: profit +102.7% vs revenue +105.3%. Profit and revenue are moving roughly in step.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 201% of Netweb Technologies India Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹790 Cr of operating cash against ₹206 Cr of profit. After ₹18.0 Cr of capital spending, ₹772 Cr was left as free cash.

FY26: operating cash of ₹790 Cr against reported profit of ₹206 Cr, leaving free cash of ₹772 Cr after ₹18.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 201% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 201%: the cash cycle stretched 24 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 2.1× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Netweb Technologies India Ltd's cash conversion cycle runs 121 days in FY26, up from 97 days in FY21. Capital spending ran ₹66.0 Cr over the last 3 years. At FY26 sales of ₹2,184 Cr each day of that cycle holds about ₹6.0 Cr, so roughly ₹724 Cr sits inside the business at any moment.

FY26: debtors at 112 days, inventory at 170 days — roughly 5.6 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 121 days, looser than FY21's 97.

The full loop: cash goes out to suppliers and production on day 0; stock waits 170 days to sell; customers pay about 112 days after that; and suppliers themselves are paid at 161 days — netting out to the 121-day cycle.

In money terms: at FY26 sales of ₹2,184 Cr, each day of the cycle holds about ₹6.0 Cr — so the 121-day loop keeps roughly ₹724 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹66.0 Cr over the last 3 fiscal years against ₹31.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Netweb Technologies India Ltd earns a ROCE of 37% in FY26. That is up from a trough of 31% in FY20. Return on invested capital clears the cost of that capital by +39.0 percentage points, so growth here adds value rather than only size. The wiring behind it is 9.4% net margin on 0.97× asset turns.

FY26 ROCE is 37%, recovered from a FY20 trough of 31% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 9.4% net margin × 0.97× asset turns × 3.12× balance-sheet leverage ≈ 28.4% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: 51.0% − 12.0% = a +39.0 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Netweb Technologies India Ltd carries total debt of ₹282 Cr against shareholder equity of ₹723 Cr as of Mar 26, a debt-to-equity of 0.39. On the annual view that ratio went from 0.38 in FY23 to 0.39 in FY26. Read the returns elsewhere on this page with that leverage in mind.

Mar 26: total debt of ₹282 Cr against shareholder equity of ₹723 Cr — a debt-to-equity of 0.39. On the annual view, debt-to-equity went from 0.38 (FY23) to 0.39 (FY26). Read the returns on this page with that leverage in mind.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 8.1 points of Netweb Technologies India Ltd over 8 quarters, the biggest move on the register. That takes promoters to 67.0% of the company. Domestic institutions moved +1.6 points over the same window, to 5.9%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −8.1 points over 8 quarters to 67.0%; Domestic institutions: +1.6 points over 8 quarters to 5.9%; Foreign institutions: −1.0 points over 8 quarters to 9.3%.

🚨 Why the register moved: promoters drove it (−8.1 points), absorbed on the other side by domestic institutions (+1.6 points) — distribution into the market’s bid.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Netweb Technologies India Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Netweb Technologies India Ltd trades at 115.0× P/E, mid-range by its own standards (37th percentile). Its long-run median P/E is 139.6×, measured across 3.1 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Why this happened. The business model is capability-driven, not capacity-driven. Current facility supports revenue up to Rs 2,500-3,000 Cr without significant capex. Beyond that, management has expansion plans (details internal). New 15,000 sq ft facility for liquid-cooled systems (150kW+ per rack density) is commissioned and supports emerging GPU architectures. R&D spend 3% of turnover (~Rs 65 Cr in FY26), expensed not capitalized. ROE 32.9%, ROCE 37.5% on a zero-net-debt balance sheet. Operating cash flow Rs 171.5 Cr in FY26 on a PAT of Rs 206 Cr — strong cash conversion.

Today's P/E of 115.0× is mid-range by its own standards (37th percentile), against a long-run median of 139.6× measured over 3.1 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +80.0% against a +73.1% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 3y, of the +81.6%/yr price move, ~−7.2%/yr came from earnings growth and ~+88.8 pp from the multiple (expanding). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: Consistent Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Netweb Technologies India Ltd reads as consistent on its fundamental arc. Consistent — revenue and profit growth have stayed positive through the window, with ROCE at 45.5% and holding. The read is built from 11 quarters across 4 curves, on full evidence.

Why it matters: steady curves with healthy returns are the compounding setup — the risk is the price, not the business.

4-Factor Sector Score

66.8/100 — rank 1 of 5 in Data Centre · 83% evidence confidence

Netweb Technologies India Ltd scores 66.8 out of 100 against the 5 companies it is compared with in Data Centre, ranking 1. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 29.1 + 18.1 + 9.3 + 10.3 = 66.8. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Said versus delivered

What Netweb Technologies India Ltd's management promised, set against what actually arrived — 4 tracked promises on the record. Read straight from the company’s own earnings calls. A promise that slipped stays on this page after it is met.

Execution Cycle Lengthened · 29 July 2026. Management materially shifted the stated normal execution cycle in Jul 2026. The prior calls described normal cycles of 10 to 20 weeks and 12 to 16 weeks, while the latest call moved the range to 16 to 20 weeks; management cited project-specific variability but did not explain the change, which could defer order-book conversion and revenue recognition.

Strategic Orders No Longer Excluded From Guidance Framework · 29 July 2026. Management changed the basis on which growth and pipeline visibility are presented. In May 2026, the 35% to 40% top-line guidance was explicitly for organic business and excluded strategic orders, whereas in Jul 2026 management said strategic orders are now part of normal business and will no longer be segregated. Management provided a rationale that large AI orders have evolved, but it did not provide a recast organic baseline or a comparable growth target, making the prior guidance and current visibility difficult to reconcile.

🚨 Strategic Order FY26 Execution Target Missed · 4 May 2026. Across both the November 2025 and January 2026 calls, management explicitly committed to executing approximately one-third of the Rs. 2,184 crore strategic order book within FY26, implying roughly Rs. 728 crores of execution. The latest call reveals a residual strategic order book of Rs. 1,600 crores entering FY27, implying only approximately Rs. 584 crores was executed in FY26 - materially below the committed target - yet management characterized this only as orders having spilled over to the next quarter with no acknowledgment that the explicitly stated one-third FY26 execution target was missed.

Pipeline Conversion Timeframe Extended Without Explanation · 4 May 2026. In the November 2025 call, management guided that organic pipeline conversion takes 6 to 18 months. The latest call shifts this window to 18 to 24 months with no explanation provided for the change. The lower bound has tripled from 6 months to 18 months, which materially extends the expected timeline for revenue realization from the Rs. 4,400 crore organic pipeline and would require analysts to substantially revise near-term revenue conversion assumptions.

Every quote above is taken word for word from the company’s own earnings calls.

Frequently asked questions