Netweb Technologies has reported a significant boost in its Artificial Intelligence (AI) business during Q1, marking a substantial growth trajectory for the company. The tech firm's AI revenue saw a remarkable 300% year-over-year increase, now accounting for 29% of the total operating revenue.

AI Business Expansion

The company's AI segment has shown impressive performance, with a successful execution of a large AI order in the defense sector. This achievement has led the management to revise its AI segment contribution guidance upwards from 20% to 22% of the total business.

Client Diversification

For the first quarter, Netweb Technologies' AI systems revenue demonstrated a balanced mix of government and enterprise clients:

Revenue Outlook

Netweb Technologies maintains an optimistic stance on its overall growth trajectory:

• Revenue Growth Guidance: The company reaffirms its revenue growth guidance of 35-40%
• Export Revenue: Expected to be 5-6% for the current year, with projections to reach around 10% within 2-3 years

Financial Performance Expectations

The company has provided insights into its anticipated financial performance:

• EBITDA Margin Guidance: Maintained at around 14%
• PAT Margin Guidance: Projected to be between 10-10.5%

This strong performance in the AI segment, coupled with a positive outlook for overall revenue growth and export expansion, positions Netweb Technologies as a notable player in the tech industry. The company's success in securing defense sector contracts and its growing enterprise customer base underscore its potential for sustained growth in the AI market.

Netweb Technologies India Limited , a leading Indian high-end computing solutions (HCS) provider, has reported impressive financial results for the first quarter of fiscal year 2026, showcasing substantial growth driven by artificial intelligence (AI) projects.

Strong Financial Performance

The company's Q1 FY26 results, announced on July 31, 2025, revealed a remarkable year-on-year growth:

• Operating income surged by 101.70% to ₹3,012.10 crore
• Operating EBITDA increased by 127.20% to ₹448.00 crore, with a margin of 14.90%
• Profit After Tax (PAT) doubled to ₹304.80 crore, maintaining a margin of 10.10%

AI-Driven Growth

Netweb's Chairman and Managing Director, Sanjay Lodha, highlighted the company's strong performance in the AI sector:

• AI systems revenue grew by 300% year-on-year
• AI segment contributed 29% to the company's operating revenue in Q1 FY26
• Successfully executed a large AI order in the critical defense sector

Strategic Developments

The company has made significant strides in enhancing its AI capabilities:

• Launched Skylus.ai, a unified, composable GPU orchestration platform for rapid deployment and optimization of AI infrastructure
• Established a roadmap to design and develop AI GPU systems based on NVIDIA's advanced Blackwell platform
• Positioned to capitalize on India's evolving AI ecosystem, supported by research, enterprise adoption, and government initiatives

Order Book and Future Outlook

Netweb Technologies reported a strong order book, indicating potential for sustained growth:

Expansion and Innovation

The company is focusing on three key growth pillars:

1. High Performance Computing (HPC)
2. Private Cloud
3. AI Systems

Netweb has also commissioned a state-of-the-art manufacturing facility with the latest Surface Mount Technology (SMT) in May 2024, enhancing its production capabilities.

Dividend Announcement

The Board of Directors has proposed a final dividend of ₹2.50 per equity share (125% of face value) for FY 2024-25, subject to shareholder approval at the upcoming Annual General Meeting scheduled for August 30, 2025.

Netweb Technologies' strong Q1 FY26 performance, coupled with its strategic focus on AI and high-end computing solutions, positions the company for continued growth in the rapidly evolving technology landscape. The company's commitment to innovation and alignment with India's 'Make in India' vision further strengthens its market position in the high-tech manufacturing sector.