Netweb Technologies Reports Mixed Q2 FY2026 Results Amid Accounting Policy Change

Netweb Technologies India Limited , a prominent player in the computer server industry, has released its unaudited standalone financial results for the second quarter and half-year ended September 30, 2025. The results, approved by the Board of Directors on November 1, 2025, reveal a mixed performance with notable changes in accounting policies.

Financial Highlights

Particulars (in ₹ million)	Q2 FY2026	Q1 FY2026	Q2 FY2025	H1 FY2026
Revenue from Operations	471.71	710.70	471.04	1,182.41
Profit After Tax	30.99	38.67	30.67	69.66
Basic EPS (in ₹)	3.55	4.43	3.51	7.98
Diluted EPS (in ₹)	3.35	4.18	3.32	7.53

Key Observations

Revenue and Profit Performance

Revenue from operations for Q2 FY2026 stood at ₹471.71 million, showing a marginal increase from ₹471.04 million in Q2 FY2025.
There was a significant quarter-on-quarter decline from ₹710.70 million in Q1 FY2026.
Profit after tax was ₹30.99 million for Q2 FY2026, slightly higher than ₹30.67 million in Q2 FY2025.

Half-Year Performance

For H1 FY2026, revenue from operations reached ₹1,182.41 million.
Profit after tax for H1 FY2026 was ₹69.66 million.

Earnings Per Share

Basic EPS for Q2 FY2026 was ₹3.55, compared to ₹3.51 in Q2 FY2025.
Diluted EPS for Q2 FY2026 was ₹3.35, up from ₹3.32 in Q2 FY2025.

Change in Accounting Policy

Effective April 1, 2024, Netweb Technologies has shifted from the First-In-First-Out (FIFO) method to the moving weighted average cost method for valuing raw materials, finished goods, and work in progress. This change aims to provide more reliable and relevant information about the company's inventory valuation.

Impact of Accounting Policy Change

Profit Adjustment: The cumulative effect on earnings due to this change was ₹4.27 million as of April 1, 2024.
Retrospective Application: In accordance with Indian Accounting Standard 8, this change has been applied retrospectively to all prior periods presented in the financial statements.

Conclusion

Netweb Technologies' Q2 FY2026 results present a picture of stability in year-over-year performance, despite a quarter-on-quarter revenue decline. The company's decision to change its inventory valuation method underscores its commitment to transparent and relevant financial reporting. As Netweb Technologies navigates the competitive computer server market, investors and stakeholders will be keen to observe how these accounting changes and financial performances translate into long-term growth and profitability.

The full financial results, along with the limited review report, are available on the company's website at https://netwebindia.com/investors .

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.10%	-3.25%	-16.16%	+61.26%	+9.92%	+249.85%

Netweb Technologies India Limited , a leading manufacturer of high-end computing solutions, has announced a strategic partnership with Bud Ecosystem, a Bengaluru-based AI research and product company. This collaboration aims to develop affordable and localized AI infrastructure solutions for India, potentially revolutionizing the accessibility of artificial intelligence across various sectors.

Key Highlights of the Partnership

Joint Development: The partnership will focus on creating 'AI-in-a-Box' pre-configured systems, integrating optimized hardware and software to deliver AI capabilities.
Target Sectors: The solutions are designed for diverse industries including education, healthcare, retail, agriculture, and small businesses.
Modular and Scalable: Customers can start with CPU-based systems and upgrade to advanced GPU or accelerator-based configurations as needed.
Addressing Challenges: The initiative aims to tackle high infrastructure costs, connectivity limitations, and data privacy concerns in AI adoption.

Features of the Joint Offering

Feature	Description
Localized Deployment	Enables on-premise AI implementation
Offline Functionality	Allows AI operations without constant internet connectivity
Data Sovereignty	Ensures data remains within local control
Pre-built LLMs and SLMs	Custom-developed language models
Multilingual AI Models	Includes models like HEX1 for diverse language support
Domain-specific AI Agents	Tailored for various industry requirements
Efficient Inference Engines	Optimized for performance
End-to-end AI Foundry Layer	Comprehensive solution for AI implementation

Impact and Vision

Swastik Chakraborty, VP Technology at Netweb Technologies, emphasized the partnership's alignment with their vision of building trusted, scalable, and inclusive compute infrastructure for India's digital growth. The collaboration aims to make AI accessible across communities, institutions, and enterprises.

Linson Joseph, Chief Strategy Officer at Bud Ecosystem, highlighted the synergy between Bud's expertise in AI software and Netweb's strengths in hardware and middleware engineering. Their shared mission is to simplify and localize AI deployment from metropolitan hubs to remote rural areas.

Broader Implications

This partnership is a significant step towards democratizing access to AI infrastructure in India. It supports the country's mission to build a sovereign, inclusive, and innovation-driven digital economy. By making advanced AI technologies more accessible and affordable, Netweb Technologies and Bud Ecosystem are contributing to the potential transformation of various sectors in India through AI adoption.

The initiative aligns with national programs like IndiaAI and Make-in-India, positioning Netweb Technologies as a key partner in building sovereign AI and compute infrastructure. As this partnership unfolds, it could play a crucial role in bridging the AI accessibility gap in India, potentially catalyzing innovation and growth across multiple industries.