Netweb Technologies shares rally 13% after Q1 profit doubles on robust AI demand

Netweb Technologies shares jumped 13% to Rs 2,295 in Friday’s intraday trade on the BSE after the high-end computing solutions provider reported strong first-quarter earnings, driven by surging demand for artificial intelligence (AI) infrastructure.

In the quarter ended June 30, 2025, Netweb’s profit after tax more than doubled to Rs 30.5 crore, compared to Rs 15.24 crore in the same period last year. Operating income also rose 102% year-on-year to Rs 301.2 crore from Rs 149.3 crore in Q1FY25.

The company reported an operating EBITDA of Rs 44.8 crore, up 127.2% YoY, with a margin of 14.9%. PAT margin stood at 10.1%. Net debt turned negative, standing at Rs (47.5) crore as of June 2025, indicating a net cash position.

AI segment drives growth

AI systems were a key growth driver for the company, with revenue from the segment rising 300% YoY and contributing 29% of the total operating income in the quarter. Netweb executed a large AI order in the critical defence sector during the quarter.

“We believe a country’s defence strength today is increasingly defined by technological superiority,” said Sanjay Lodha, Chairman and Managing Director. “This performance validates the strength and scalability of our business model.”

Lodha added that the company is committed to in-house design and manufacturing in line with the government’s ‘Make in India’ vision, and aims to contribute to India’s position as a global hub for high-tech manufacturing.

Product innovation and future outlook

In FY25, the company launched Skylus.ai, a unified and composable GPU orchestration platform designed to simplify and accelerate AI infrastructure deployment. The platform is part of Netweb’s broader strategy to expand in high-performance computing (HPC), private cloud, and AI systems.

“India’s evolving AI ecosystem, bolstered by enterprise adoption, research activity, and government-led initiatives to build indigenous large language models, presents a huge opportunity. Netweb is well-positioned to capitalise on this momentum,” Lodha said.

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With a strong order book and continued investments in innovation and talent, the company said it expects to sustain its growth trajectory and technological leadership in the AI and high-end computing domains.

Netweb Technologies shares target price

According to Trendlyne, the average target price for Netweb Technologies is Rs 2,000, suggesting a potential downside of 12%. Among 2 analysts tracking the stock, the consensus rating is ‘Buy’.

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