Concall AI

Netweb Technologies India Limited — Q4 FY26 earnings call

Call held 4 May 2026

Management summary

Netweb Technologies delivered a landmark FY26 with 90% YoY revenue growth and 80.9% YoY PAT growth, significantly driven by its AI segment. The company enters FY27 with a robust order book of INR 2,400 crores and a pipeline of INR 4,400 crores, guiding for 35-40% organic revenue growth and 13-14% EBITDA margins. While inventory days increased due to strategic stock-up, the company maintains a net debt-free position and strong liquidity.

Highlights

Revenue from operations for FY26 reached INR 2,183.6 crores, reflecting a strong year-on-year growth of 90%.
Q4 FY26 revenue from operations stood at INR 773.7 crores, growing 86.6% year-on-year.
PAT for FY26 stood at INR 205.8 crores, up by 80.9% year-on-year with a PAT margin of 9.3%.
The AI segment grew by 459.6% year-on-year and contributed 43.4% of total operating revenue in FY26.
Entered FY27 with a firm order book of INR 2,100 crores and an L1 inclusive order book of INR 2,400 crores, along with a pipeline of INR 4,400 crores.

Concerns

Inventory days increased from 60 days in December 2025 to 86 days in March 2026, primarily due to raw material stock-up.
Short-term borrowings increased by INR 270 crores, though management stated these are transitional for funding strategic orders.

Key financials

3 periods

Headline

Return on Equity
32.9%
Return on Capital Employed
37.5%
Gross Fixed Asset Turnover Ratio
33.2×
Cash Conversion Cycle
84 days
Receivable Days
86 days
Inventory Days
86 days
Net Free Cash
₹83.3 Cr

Q4 FY26

Revenue
₹773.7 Cr
YoY +86.6%
PAT
₹70.6 Cr
YoY +65.7%
PAT Margin
9%
Adjusted EBITDA
₹101.8 Cr
YoY +71.8%
EBITDA
₹96.6 Cr
YoY +63%

FY26

Revenue
₹2,183.6 Cr
YoY +90%
PAT
₹205.8 Cr
YoY +80.9%
PAT Margin
9.3%
Adjusted EBITDA
₹290.1 Cr
YoY +82.4%
EBITDA
₹284.8 Cr
YoY +79.1%
Net Cash Generated from Operating Activities
₹171.5 Cr

What they filed

Q1 FY27: revenue up 172.4%, net profit up 183.3% against the same quarter last year.

₹ Cr · quarterly

Line item	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26	Q3 FY26	Q4 FY26	Q1 FY27
Revenue	251	334	415	301	304 +21%	805 +141%	774 +87%	820 +172%
Expenses	215	291	355	256	258	707	677	699
EBITDA	36	43	59	45	45 +25%	98 +128%	97 +64%	121 +169%
Margin	14%	13%	14%	15%	15%	12%	12%	15%
Other income	2	2	2	1	1	7	10	8
Interest	1	1	1	1	1	3	8	12
Depreciation	3	3	3	3	3	4	4	3
Profit before tax	35	40	57	42	42 +20%	98 +145%	95 +67%	114 +171%
Tax rate	25%	26%	26%	27%	25%	25%	26%	25%
Net profit	26	30	43	30	31 +19%	73 +143%	71 +65%	85 +183%
EPS	4.64	5.27	7.52	5.38	5.55	12.94	12.40	14.98

How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

AI Systems
43.4% Revenue Contribution (FY26)459.6% Revenue Growth (FY26)
HPC
24% Revenue Contribution (Q4 FY26)

Order book

high confidence

Total value

₹2,400 Cr

as of 2026-04-01 quantified

Execution

Strategic orders in next 3 quarters phase-wise; organic order book in 18-20 weeks.

Composition

Mix 3 contract types

Strategic Order 66.7%
Organic Order 19.7%
L1 (Organic) 13.6%

Share of order book by contract type

Pipeline

deal pipeline tcv

Open deal pipeline

The company has a very strong order book and pipeline, with 60% of the pipeline expected to convert over 1.5 to 2 years.

Source: Prepared remarks

Capital allocation

high confidence

Capex ₹20 Cr

No significant capex is expected in this financial year '27. So, there will be the routine capex that will be coming across. ... Okay. So, we can expect the INR20 crores, INR25 crores of base spending will continue? Yes, more or less.
Debt Net ₹0 Cr
- New borrowing Increase in short-term borrowings to fund strategic orders, stated as transitional and due to WCDL covenants. ₹270 Cr
Our balance sheet strength is reflected by us being a zero-net-debt company.
Dividend ₹3/share (interim)

The Board has recommended a dividend of INR3 per share, subject to shareholders' approval.
Liquidity Cash ₹83.3 Cr

The company had net free cash of INR833 million as on 31st March 2026.

Guidance & targets

Revenue

Revenue Growth (Organic) Revenue · next couple of years · High confidence 35-40%

on the revenue growth, we are guiding 35% to 40% growth. ... guidance on the top line is not inclusive of the strategic order. It is the normal organic order, which is about 35%.

— Ankit Kumar Singhal

Margin

EBITDA Margin Margin · next couple of years · High confidence 13-14%

on the operating EBITDA margins, we are guiding 13% to 14%. ... I'd like to guide you the margins will remain at the same 13% to 14%.

— Ankit Kumar Singhal

Capex

Routine Capex Capex · FY27 · High confidence INR 20-25 crores

No significant capex is expected in this financial year '27. So, there will be the routine capex that will be coming across. ... Okay. So, we can expect the INR20 crores, INR25 crores of base spending will continue? Yes, more or less.

— Ankit Kumar Singhal

Working Capital

Cash Conversion Cycle Working Capital · next year · Medium confidence 90-110 days

our cash conversion cycle typically operates from 90 to 110 days. Now this is something which cannot be projected for next year at least, but we would like to say that the range will remain like that.

— Ankit Kumar Singhal

Segment Mix

AI Segment Share Segment Mix · future · Low confidence 25-30%

AI should be around 25% to 30%... Balance will be shared equally between the HPC and Private Cloud.

— Sanjay Lodha

Exports

Exports Revenue Share Exports · ongoing · High confidence 5%

So, it will remain around the 5%, which we have been currently doing. It will remain around that only.

— Sanjay Lodha

What to watch in Q1 FY27

Strategic Order Execution Progress

Next 3 quarters

Current INR 1,600 crores strategic orders

Target Progress on execution of strategic orders

Why it matters

Strategic orders represent a significant portion of the order book, and their execution velocity is crucial for revenue realization.

But as regard strategic orders are concerned, we are not guiding on the execution. But basically, what I said is that the strategic orders should go in next 3 quarters actually and phase-wise.

Risks & concerns

Increased Inventory Days
medium

Inventory days increased to 86 days (from 60 days in Dec 2025) due to strategic raw material stock-up for large orders and securing key AI compute inputs amidst surging global demand.

Management acknowledged
Component Pricing Pressure
medium

Unabated AI demand is putting pressure on component prices and the supply chain, though management believes they can pass on costs to new customers and plan inventories proactively.

Management acknowledged
Short-term Borrowings Increase
low

INR 270 crores increase in short-term borrowings, stated as transitional and primarily for funding strategic orders and adhering to WCDL covenants, not a liquidity issue.

Management downplayed

Q&A highlights

8 direct

Order Book Composition and Pipeline Direct

total order book, if you look today is INR2,100 crores plus about INR300 crores. So INR2,400 plus INR100 crores is the order book, including L1. And to that, you add INR4,400 crores of pipeline. So that will stack up to, let's say, about how much INR6,500 crores. So that's the total, including pipeline and order book.

Clarified the total order book (firm + L1) and pipeline, providing a comprehensive view of future revenue visibility.

Asked by Renu Baid

Inclusivity of Revenue Growth Guidance Direct

the guidance on the top line is not inclusive of the strategic order. It is the normal organic order, which is about 35%.

Crucial clarification that the 35-40% revenue growth guidance is for organic business, implying strategic orders are incremental.

Asked by Vinay Menon

Promoter Stake Sale Rationale Direct

this stake sale was done in the month of February. We are not going to dilute 12 months from there. So that's already confirmed. As stake sale, of course, it was done because there was some there was a liquidity -- there was limited liquidity. So, by this stake sale, we have been able to increase the liquidity of the stock.

Addressed investor concerns regarding promoter commitment and the purpose of the stake sale, confirming no further dilution for 12 months.

Asked by Akshay

Hyperscaler Market Strategy Direct

At this point of time my answer is that at this point of time, we are not targeting really hyperscalers because India is a market in which basically still is not a hyperscaler-driven market. It's primarily more of a sovereign and those kind of market actually is currently it is. But definitely, hyperscalers come, And if they are interested, we can definitely bid for them.

Clarified the company's current market focus on sovereign and government-driven AI infrastructure rather than direct hyperscaler engagement in India.

Asked by Harinder Singh

New Manufacturing Facility Capabilities Direct

This is a state-of-the-art manufacturing facility, which we have set up. And largely, the target was to start manufacturing the range of those systems, which we had not been manufacturing earlier. ... increase the density per rack in our case, and that is what we have this facility has helped us. And now we'll be able to scale even beyond 150 kilowatt per rack kind of an architecture.

Provided details on the strategic purpose and enhanced capabilities of the newly commissioned manufacturing facility, including support for liquid-cooled systems and higher rack density.

Asked by Akshay

Cash Conversion Cycle and Inventory Management Direct

I don't think it is 100 days. I think we have shared the presentation. If you have had a look at the presentation, it is 84 days. And primarily, because of inventory, which we have created in inventory for our large orders, which we have created in inventory for our large orders, which we are carrying in hand as of date.

Addressed concerns about working capital efficiency by clarifying the current cash conversion cycle and explaining the strategic rationale behind increased inventory days.

Asked by Mansimer Singh Sethi

Increase in Short-term Borrowings Direct

borrowings have some covenants. When we borrow the funds, we have to maintain the borrowing period for some period of time. And these are the numbers based on the reporting date. So, there are RBI guidelines where the WCDLs are supposed to be maintained for a certain period of time. ... we do have cash, but we cannot settle the borrowings with them.

Clarified that the increase in short-term borrowings is transitional, driven by funding strategic orders and adherence to regulatory covenants, rather than a liquidity crunch.

Asked by Vatsal Aggarwal

Segment Dynamics (AI vs. Private Cloud/HPC) Direct

all the 3 segments... HPC, Private Cloud and AI... HPC is a segment which will grow very heavily. Private Cloud data center is going unabated, but AI is worldwide grown. ... AI will grow at a larger pace.

Provided clarity on the growth trajectory and inter-segment dynamics, explaining that while AI is growing fastest, HPC and Private Cloud segments are also experiencing healthy growth.

Asked by Pooja Seth

2 min read 6 chapters

Detailed narrative

Strong FY26 Performance Driven by AI Segment

Netweb Technologies reported a landmark FY26, with revenue from operations growing 90% year-on-year to INR 2,183.6 crores. Profit after tax (PAT) also saw significant growth of 80.9% year-on-year, reaching INR 205.8 crores with a PAT margin of 9.3%. This performance was largely propelled by the AI segment, which grew an impressive 459.6% year-on-year and contributed 43.4% to the total operating revenue for FY26, marking a transformational shift in the company's revenue mix.

Robust Order Book and Pipeline for FY27

The company enters FY27 with a strong order book of INR 2,400 crores, inclusive of L1 orders, as of day one. This comprises INR 1,600 crores in strategic orders, INR 472 crores in organic orders, and INR 327 crores in L1 organic orders. Additionally, Netweb has a substantial pipeline of INR 4,400 crores. Management expects strategic orders to be executed phase-wise over the next three quarters, while organic orders typically have a shipping cycle of 18-20 weeks.

Guidance for Sustainable Organic Growth and Margins

Netweb Technologies provided guidance for 35-40% organic revenue growth over the next couple of years, emphasizing that this excludes strategic orders. The company also aims to sustain its EBITDA margin within the 13-14% range for the same period. This disciplined approach to growth and profitability is supported by a healthy order book and strong demand for high-end computing systems in India, with routine capex for FY27 projected at INR 20-25 crores.

Strategic Inventory Build-up and Working Capital Management

The company's cash conversion cycle stood at 84 days as of March 2026, an improvement from 114 days in December 2025, primarily due to better receivable management. However, inventory days increased to 86 days from 60 days in the previous quarter. This increase is attributed to a strategic build-up of raw material stock to support the execution of large orders and secure key inputs amidst surging global demand for AI compute infrastructure.

Focus on Domestic AI Infrastructure and Capability-Driven Approach

Netweb is prioritizing the domestic market, particularly the sovereign and government-driven AI infrastructure build-out, rather than directly targeting hyperscalers in India. The company emphasizes its capability-driven approach over capacity, with current utilization at 65-70%. A new 15,000 sq ft state-of-the-art manufacturing facility has been commissioned to produce systems not made earlier, increase rack density, and enable liquid-cooled systems, enhancing its ability to meet the growing demand for advanced computing.

Capital Allocation and Liquidity Position

Netweb maintains a net debt-free position with net free cash of INR 83.3 crores as of March 31, 2026. While short-term borrowings increased by INR 270 crores, management clarified these are transitional, primarily for funding strategic orders and adhering to WCDL covenants. The company has recommended a dividend of INR 3 per share and plans for routine capex of INR 20-25 crores for FY27, with no significant capex expansion anticipated.

This is an AI-generated summary of a publicly available earnings call transcript.

View original transcript