Netweb Technologies India Limited has delivered a landmark Q4 and full-year FY26 financial performance, with the AI segment emerging as the dominant growth driver. Revenue from Operations for FY26 reached ₹21,835.6 million, reflecting year-on-year growth of 90.0%, while PAT rose 80.9% to ₹2,058.2 million. The AI segment's contribution to overall revenue rose sharply to 43.4% from 15% in FY25. Government customers accounted for 42.8% and non-government customers contributed 57.2% of FY26 revenue. The Audited Standalone financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 02, 2026, with statutory auditors M/s. S S Kothari Mehta & Co. LLP issuing an unmodified audit opinion.

Q4 FY26 Financial Performance

The company demonstrated strong operational performance in Q4 with significant growth across key financial metrics. Adjusted Operating EBITDA for Q4 FY26 stood at ₹1,018.1 million, up 71.8% year-on-year, with a margin of 13.2%. Net Debt was nil, with net free cash of ₹833.0 million as at March 31, 2026. The detailed quarterly and full-year performance is presented below:

Note: Previous period numbers have been restated in accordance with a change in accounting policy for valuation of Raw Materials, Finished Goods and Work in Progress from FIFO to moving weighted average cost method. The impact is not material. Adjusted Op EBITDA includes hedging gains of ₹52.4 Mn added back to offset MTM losses on the same underlying payables.

FY26 Full-Year Financial Performance

Netweb Technologies delivered consistent growth across all key financial parameters over the full year. The company's operating income reached ₹21,835.6 million, representing a CAGR of 72.4% from FY22. The following table summarises the multi-year financial performance trend:

Return on Capital Employed (ROCE) improved to 37.5% in FY26 from 32.4% in FY25, while Return on Equity (ROE) rose to 32.9% from 23.9% over the same period. The gross fixed asset turnover ratio stood at 33.2x as on March 31, 2026, and the cash conversion cycle stood at 84 days. Receivable days improved from 114 days in December 2025 to 86 days in March 2026, while inventory days increased from 60 days in December 2025 to 86 days in March 2026, primarily on account of buildup of raw material stock to support execution of large strategic orders and to secure adequate inventory of key inputs. The company maintained a net cash position, with Net Debt/Equity at (0.12) and Net Debt/Op EBITDA at (0.29) in FY26. The audited balance sheet as at March 31, 2026 reflects total assets of ₹22,549.28 million, total equity of ₹7,232.98 million, and cash and cash equivalents of ₹3,655.22 million. Net cash generated from operating activities for FY26 stood at ₹1,714.92 million, compared to ₹(132.11) million in FY25.

AI Segment Drives Business Transformation

The defining highlight of FY26 was the performance of the AI Systems segment, which grew 459.6% year-on-year, contributing 43.4% of total operating revenue — a transformational shift from 15% in FY25. The AI Systems segment recorded revenue of ₹9,478 million in FY26, up from ₹1,694 million in FY25, representing a CAGR of 149.9% from FY22. The following table presents segmental revenue trends across key business lines:

During the Q4 FY26 earnings call held on May 04, 2026, Chairman and Managing Director Mr. Sanjay Lodha stated that the AI Systems growth was the result of years of focused, in-house R&D, enabling the company to design and manufacture some of the world's most powerful, latest-generation AI systems, combined with disciplined planning and execution of large, strategically significant national-scale orders. He emphasised that Netweb is India's only full-stack domestic provider for high-end computing systems and is uniquely positioned to power the country's sovereign AI infrastructure transition. Management noted that the company is not currently targeting hyperscalers, as India remains primarily a sovereign and enterprise-driven market. On the demand outlook, management indicated that AI demand remains unabated and is expected to continue for at least the next 18 to 24 months, with both training and inference workloads contributing to incremental demand.

FY27 Guidance and Management Commentary

During the earnings call, CFO Mr. Ankit Kumar Singhal guided revenue growth of 35% to 40% and operating EBITDA margins of 13% to 14% for the next couple of years at the enterprise level. Management clarified that this guidance pertains to the overall business and is not exclusive of strategic orders. In response to analyst queries, management confirmed that the guidance of 35% to 40% on the top line reflects the organic order base, while strategic order execution over the next three quarters provides additional upside. No significant capital expenditure is expected in FY27, with only routine capex continuing. On the cash conversion cycle, management guided a range of 90 to 110 days going forward, noting that the current elevated inventory days reflect strategic stocking of critical components. Export revenues are expected to remain at approximately 5% of total revenues, as the company is prioritising domestic demand fulfilment. Management also confirmed that no further promoter stake dilution is planned for 12 months from February, following a stake sale that was executed to improve stock liquidity.

Order Book and Business Pipeline

The company's growth visibility is underpinned by a strong order book and pipeline as of March 31, 2026. During the earnings call, management stated that the firm order book stood at approximately ₹2,100 crores, with an L1-inclusive order book of approximately ₹2,400 crores — exceeding the prior full year's revenue. Management indicated that strategic orders are expected to be executed over the next three quarters on a phased basis, while organic orders typically ship within 10 to 20 weeks. The pipeline conversion rate is approximately 60% over an 18-to-24-month horizon. Mr. Sanjay Lodha further clarified that the strategic order component stands at ₹1,600 crores, the organic order book at ₹472 crores, and the L1 position at ₹327 crores. The key order book and pipeline metrics are summarised below:

New Manufacturing Facility

Management confirmed the commissioning of a new state-of-the-art production facility spanning 15,000 square feet. The facility has been established to manufacture a range of systems not previously produced by the company, including the latest generation system architectures. The facility is also designed to support the development of a complete range of liquid-cooled systems and is capable of scaling beyond 150 kilowatt per rack architecture, enabling the company to target larger and denser deployments. Management described the company as capability-driven rather than capacity-driven, with current capacity utilisation at approximately 65% to 70%.

Customer Base and Repeat Business

Netweb Technologies onboarded 131 new clients across diverse industries in FY26, while maintaining 302 repeat customers associated with the company for over six years. Revenue from repeat customers stood at 75.6% in FY26. Customer concentration among the top 10 customers increased to 76.4% in FY26 from 65.8% in FY25, while top 5 customer concentration rose to 62.2% from 50.8% over the same period. The company reported a customer accretion CAGR of 9.08% from FY20 to FY26.

Board Decisions and Dividend Recommendation

The Board has recommended a final dividend of ₹3.00 per share on the face value of ₹2.00 per share for FY 2025-2026, representing 150% of face value, subject to approval by members at the ensuing Annual General Meeting. The proposed dividend amounts to ₹170.82 million and will be paid within 30 days of declaration at the AGM. The Record Date will be announced in due course.

Additionally, the Board approved the appointment of M/s. Sankalp & Associates (FRN-026578N), Chartered Accountants, as Internal Auditors for FY 2026-27, and formally recognised Mr. Mukul Kedia as Chief Strategy Officer and Mr. Swastik Chakraborty as Vice President - Technology as Senior Management Personnel, effective May 02, 2026. During the year, the company allotted 2,86,819 equity shares under Employee Stock Option Scheme 2023 at a price of ₹2.00 per equity share, aggregating ₹0.57 million, and recorded an ESOP cost of ₹22.43 million for the year ended March 31, 2026.

Regulatory Compliance and Document Availability

Netweb Technologies has submitted copies of newspaper publications for its audited financial results for the quarter and year ended March 31, 2026, to BSE Limited and National Stock Exchange of India Limited under Regulation 47(3) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The submission includes publications in Financial Express (All India Edition, English) and JanSatta (Delhi NCR Edition, Hindi), both dated May 03, 2026. The Q4 FY26 Post Results Earnings Call transcript was filed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, for the call held on May 04, 2026. The complete Financial Results along with the Auditors' Report have been posted on the company's webpage and are also available on the websites of BSE Limited and National Stock Exchange of India Limited.

Source: None/Company/INE0NT901020/cfc83e2e897249e8.pdf

Netweb Technologies India Limited has informed the stock exchanges of the availability of the audio recording of its Q4 FY26 earnings call, held on May 04, 2026. The disclosure was made pursuant to Regulation 30 read with Clause 15 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Earnings Call Recording Now Available

The company has uploaded the audio recording of the Q4 FY26 earnings call on its official website. Investors and stakeholders can access the recording through the link provided on the company's investor relations page at www.netwebindia.com .

The key details of this regulatory disclosure are summarised below:

Regulatory Compliance

The filing was submitted to both BSE Limited and the National Stock Exchange of India Limited as part of the company's ongoing disclosure obligations. The communication was signed by Lohit Chhabra, Company Secretary and Compliance Officer of Netweb Technologies India Limited, on May 04, 2026. The company is headquartered at Plot No. H-1, Block-H, Pocket No. 9, Faridabad Industrial Town, Sector-57, Faridabad, Haryana 121004.