Netweb Technologies Reports Strong H1 FY26 Performance with 51% Revenue Growth

Netweb Technologies India Limited , a leading high-end computing solutions provider, has reported robust financial results for the second quarter and first half of fiscal year 2026. The company's performance underscores its strong position in the rapidly evolving AI and high-performance computing market.

Financial Highlights

For the first half of FY26 (H1 FY26), Netweb Technologies demonstrated impressive growth:

Metric	H1 FY26	YoY Growth
Operating Income	₹6,049.40 Million	51.10%
Operating EBITDA	₹903.20 Million	60.60%
PAT	₹619.10 Million	49.50%

The company maintained a healthy Operating EBITDA margin of 14.90% and a PAT margin of 10.20% for H1 FY26.

Q2 FY26 Performance

In the second quarter of FY26, Netweb continued its growth trajectory:

Metric	Q2 FY26	YoY Growth
Operating Income	₹3,037.20 Million	21.00%
Operating EBITDA	₹454.60 Million	25.10%
PAT	₹314.30 Million	20.10%

The company maintained an Operating EBITDA margin of 15.00% and a PAT margin of 10.30% for Q2 FY26.

Strategic Wins and AI Segment Growth

Netweb secured two large strategic orders worth approximately ₹21,840.00 Million, to be executed by FY27. These orders are aimed at strengthening India's AI compute infrastructure and advancing the country's vision of a Sovereign AI journey.

The company's AI Systems segment showed remarkable growth, with its revenue contribution rising from 14.70% in H1 FY25 to 25.40% in H1 FY26, reflecting a 160.70% year-on-year increase.

Management Commentary

Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, commented on the results: "The strategic orders won are of national significance, aimed at strengthening India's AI compute infrastructure and advancing the vision of a Sovereign AI journey of the Nation. By delivering world-class AI infrastructure designed, engineered, and manufactured in India, we are helping build the nation's sovereign compute capabilities, accelerating its emergence as a global AI powerhouse."

Future Outlook

Netweb's focus on its three growth pillars - HPC, Private Cloud, and AI Systems - positions it to capitalize on strong momentum across these segments. The company's commitment to in-house design and manufacturing of next-generation systems, compliant with the 'Make in India' vision, contributes to India's emergence as a global hub for high-tech manufacturing.

With a strong order book, including the strategic orders worth ₹21,840.00 Million and an organic order book of ₹4,939.00 Million, Netweb Technologies is well-positioned for continued growth in the high-end computing solutions market.

About Netweb Technologies

Founded in 1999, Netweb Technologies is India's leading high-end computing solutions provider, offering a full stack of products and solutions including HPC, Private cloud and HCI, AI systems, and enterprise workstations. The company has a manufacturing facility in Delhi-NCR and 18 offices across India.

Netweb Technologies went public in July 2023 and continues to strengthen its position in the Indian and global high-performance computing market.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.61%	+8.63%	+10.67%	+186.08%	+49.67%	+343.52%

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 .