Netweb Technologies India Ltd. (NETWEB), one of India’s leading OEMs in high-end computing and AI infrastructure solutions, has witnessed a remarkable surge in its stock price over the past month. The company’s shares have jumped nearly 80-88% between early September and early October 2025, rising from around ₹2,300–₹2,500 to above ₹4,300. Over the past six months, the stock has gained a staggering 170-178%, repeatedly touching new record highs.
This impressive rally is being driven by a combination of strong financial performance, a booming AI and digital infrastructure market, and strategic contract wins that reinforce Netweb’s leadership in India’s AI ecosystem. Below are the major factors behind this extraordinary rise.
Explosive Q1 FY26 Earnings Performance
Netweb Technologies delivered outstanding first-quarter results for FY26 (ending June 2025). The company’s operating income surged 101.7% year-on-year to ₹301.21 crore, while profit after tax (PAT) doubled to ₹30.5 crore, resulting in a healthy 10.1% net margin.
According to Chairman Sanjay Lodha, this stellar growth reflects the company’s strong execution capabilities and rising demand for AI-driven technologies. The AI segment alone contributed 29% of Q1 revenue—up 300% year-on-year—showcasing how Netweb is successfully monetizing its high-margin AI product portfolio.
Major AI-Focused Order Wins
The company has recently secured significant AI supercomputing orders worth over ₹2,184 crore, which are expected to drive future revenue growth.
Key contracts include:
- A ₹1,734 crore sovereign AI infrastructure order announced in early September 2025, leveraging NVIDIA’s latest Blackwell architecture. Execution for this large-scale project is scheduled for Q4 FY26 through H1 FY27.
- A ₹450 crore order for GPU-accelerated AI systems, announced on September 19, 2025, featuring NVIDIA-powered servers for high-performance AI workloads.
These high-value contracts, many of which are in defense and critical national sectors, strengthen Netweb’s role in India’s AI mission and provide strong revenue visibility. As of now, the company has an order book of ₹230 crore, L1 orders worth ₹460 crore, and a robust ₹4,000 crore project pipeline.
India’s Digital Infrastructure and AI Boom
Netweb is a key beneficiary of India’s expanding digital and AI infrastructure push. Government initiatives such as data localization, the IndiaAI Mission, and the Make in India program are fueling strong domestic demand for high-performance computing (HPC) solutions.
Netweb’s supercomputers have already appeared in the global Top 500 list 15 times, underlining its technological capabilities. Analysts at Ventura Securities project India’s AI infrastructure market to reach ₹8,700 crore by FY28, growing at a CAGR of 29.5%. Similarly, the private cloud and hyper-converged infrastructure (HCI) market is expected to grow at 28.5% CAGR to ₹14,100 crore, while HPC is projected to reach ₹2,430 crore at an 8.2% CAGR.
For Netweb Technologies, these trends translate into a projected 36.7% revenue CAGR to ₹2,938 crore by FY28. Moreover, recent GST reforms that lower IT infrastructure costs have further boosted investor sentiment toward the sector.
Solid Financial Health and Growth Outlook
Netweb Technologies maintains a debt-free balance sheet with net cash of ₹47.5 crore as of June 2025. This financial strength enables the company to pursue aggressive growth and investment plans without resorting to equity dilution.
Management has provided optimistic guidance, expecting 35-40% annual sales growth and maintaining profit margins near 10%. The AI business is projected to contribute over 20% of total revenue in FY26. In addition, the company’s proprietary GPU orchestration platform, Skylus AI, gives it a competitive technological edge and justifies its premium market valuation.
Market Momentum and Technical Strength
Strong investor interest and heavy trading volumes have further fueled the rally. The stock rose 13% on October 1, 2025, alone, touching ₹4,156 intraday, and has recorded 11 all-time highs within five weeks.
Technically, the stock is trading well above all key moving averages, indicating sustained bullish momentum. Over the past year, Netweb shares have risen 71.5%, outperforming peers and sector indices. However, with its current P/E ratio of 80.71 compared to the sector average of 27.14, the stock is considered richly valued—reflecting investor confidence in its growth prospects.
Key Metrics (as of October 3, 2025)
| Metric | Value | YoY Change |
|---|---|---|
| Share Price | ₹4,304 (up 6% intraday) | +80-88% (1M), +170% (6M) |
| Market Cap | ₹24,429 crore | +71.5% (1Y) |
| Revenue (Q1 FY26) | ₹301 crore | +102% |
| PAT (Q1 FY26) | ₹30.5 crore | +100% |
| Order Book | ₹230 crore + ₹4,000 crore pipeline | N/A |
Conclusion
Netweb Technologies’ meteoric rise is backed by strong fundamentals, sectoral growth drivers, and an expanding AI portfolio that positions it as a key player in India’s digital transformation journey.
While the momentum remains strong, investors should note the stock’s high valuation and volatility (beta >1). For long-term investors with confidence in India’s AI and digital infrastructure growth story, Netweb Technologies remains a high-potential but high-risk play.
Promoter holding continues to remain strong at 71%, reflecting confidence in the company’s long-term prospects.
For real-time updates, investors can track the stock on NSE and BSE listings.
Disclaimer: This article is for informational purposes only and not financial advice. Investors are advised to conduct their own due diligence before making investment decisions.
