Netweb Technologies shares rally 50% in 6 days to hit record high. Here are 4 reasons why

Shares of Netweb Technologies climbed as much as 7.4% on Monday to a 52-week high of Rs 3,312.00 on the BSE, extending a sharp six-day rally that has sent the stock up 50%. The surge has been fueled by a sovereign AI deal, investor optimism following its annual general meeting, robust earnings momentum, and strong technical signals.

Sovereign AI boost

The biggest trigger came last week when Netweb announced a Rs 1,734 crore order to power India’s sovereign AI infrastructure under the IndiaAI Mission. The project, scheduled for execution between the last quarter of FY26 and the first half of FY27, will deploy Netweb’s GPU-accelerated platforms based on NVIDIA’s Blackwell architecture and its Tyrone Camarero AI platform.

Chairman and Managing Director Sanjay Lodha said the order “will help India emerge as an AI superpower” while enabling socio-economic transformation through indigenous large language and multimodal models.

AGM optimism

The rally picked up pace after the company’s annual general meeting on August 30, where management delivered an upbeat roadmap for AI-led growth. The commentary sparked fresh buying interest as investors sought exposure to the fast-growing sector.

Earnings momentum

Though not the immediate driver, the company’s strong first-quarter performance continues to underpin sentiment. Netweb reported a more than twofold jump in profit to Rs 30.5 crore, with operating income surging 102% year-on-year to Rs 301.2 crore.

EBITDA climbed 127% to Rs 44.8 crore, with margins expanding to 14.9%. Revenue from AI systems soared 300% year-on-year, contributing 29% of operating income. The company also reported a net cash position of Rs 47.5 crore as of June 2025.

Technicals remain bullish

From a technical standpoint, the stock is trading above all eight of its key simple moving averages, from the 5-day to the 200-day SMA, highlighting bullish undertones across time frames.

Also read | Banks sense an opportunity in GST gain for retail, MSME

The Relative Strength Index is at 81.7, firmly in overbought territory, suggesting the possibility of a pullback. Meanwhile, the Moving Average Convergence Divergence at 166.6 remains above both the centre and signal lines, reinforcing the bullish trend.

So far in 2025, Netweb shares are up 10.3% and have nearly doubled, up 99.4%, over the past six months.