Financial Performance Highlights

Netweb Technologies reported unaudited financial results for Q2 FY27 (quarter ended September 30, 2026) and H1 FY27, showing exceptional growth across all key metrics.

Q2 FY27 Performance:

  • Revenue from Operations: ₹13,233 Mn, up 335.7% YoY and 61.4% QoQ
  • Operating EBITDA: ₹1,973 Mn, up 334.0% YoY and 63.7% QoQ
  • Operating EBITDA Margin: 14.9% (vs 15.0% in Q2 FY26)
  • Profit Before Tax (PBT): ₹1,826 Mn, up 334.6% YoY and 60.0% QoQ
  • Profit After Tax (PAT): ₹1,367 Mn, up 334.8% YoY and 60.2% QoQ
  • PAT Margin: 10.2% (vs 10.3% in Q2 FY26)
  • Diluted EPS: ₹23.54, up 324.2% YoY

H1 FY27 Performance:

  • Revenue from Operations: ₹21,430 Mn, up 254.2% YoY
  • Operating EBITDA: ₹3,230 Mn, up 257.7% YoY
  • Operating EBITDA Margin: 15.1% (vs 14.9% in H1 FY26)
  • PBT: ₹2,968 Mn, up 254.9% YoY
  • PAT: ₹2,220 Mn, up 258.5% YoY
  • PAT Margin: 10.3% (vs 10.2% in H1 FY26)
  • H1 FY27 PAT of ₹2,220 Mn exceeded full-year FY26 PAT of ₹2,058 Mn

Business Segment Performance

Revenue Breakdown by Segment (Q2 FY27):

  • AI Systems: ₹7,731 Mn (58.4% of revenue), growing 1,068.1% YoY
  • HPC: ₹2,482 Mn
  • Private Cloud: ₹2,448 Mn

The company highlighted diversified growth across all segments with AI Systems as the primary growth driver.

Order Book and Pipeline

As of September 30, 2026:

  • Order Book: ₹26,290 Mn (confirmed purchase orders pending execution)
  • L1 Position: ₹6,525 Mn (tenders where declared lowest qualified bidder)
  • Active Pipeline: ₹1,11,518 Mn (total value of active business opportunities)

Capital Raise and Balance Sheet

Recent Capital Raise:

  • Successfully raised ₹12,000 Mn through first capital raise since listing in July 2023

Balance Sheet Position (as of September 2026):

  • Equity Share Capital: ₹119 Mn
  • Other Equity: ₹20,923 Mn
  • Net Worth: ₹21,041 Mn
  • Total Borrowings: ₹3,213 Mn
  • Lease Liabilities: ₹115 Mn
  • Free Cash: ₹3,464 Mn
  • Net Debt: (₹136) Mn (net cash position)
  • Net Fixed Assets: ₹616 Mn
  • Net Current Assets: ₹20,268 Mn

Utilization of Issue Proceeds (as of September 30, 2026):

  • Working Capital Requirements: ₹7,667.45 Mn utilized out of ₹9,705.01 Mn allocated
  • General Corporate Purposes: ₹0 utilized out of ₹1,995.02 Mn allocated
  • Issue Expenses: ₹76.79 Mn utilized out of ₹299.97 Mn allocated
  • Total Utilized: ₹7,744.24 Mn out of ₹12,000.00 Mn net proceeds

Operational Metrics

  • Cash Conversion Cycle: 94 days (vs 84 days in March 2026)
  • Receivable Days: 62 days (vs 86 days in March 2026)
  • Inventory Days: 117 days (vs 86 days in March 2026)
  • Payable Days: 85 days (vs 88 days in March 2026)
  • Gross Fixed Asset Turnover Ratio: 55.5 (annualized)

Management Commentary

Sanjay Lodha, CMD, highlighted several key strategic points:

  • Q2 FY27 was a record quarter with highest-ever quarterly Revenue from Operations and PAT
  • Strong growth momentum driven by unprecedented surge in demand for AI compute
  • India emerging as significant growth market for high-performance computing
  • Government bodies, public institutions and large enterprises prioritizing secure, high-performance systems for sovereign infrastructure
  • Company positioned to address evolving requirements with engineering, system design and solutioning capabilities
  • Global cloud service providers, data centre operators expanding GPU-intensive infrastructure in India
  • National Supercomputing Mission 2.0 emphasizing "build & design in India"
  • Company maintaining chip-agnostic design philosophy with sustained investment in innovation
  • Strengthened balance sheet following recent capital raise provides capacity for future growth

Growth Drivers and Strategy

The presentation outlined multiple growth drivers:

1. Deepening Core Business Verticals: Alignment with NSM 2.0's shift to "build & design in India", investment in low-footprint designs, advanced interconnects

2. HCI Strategy: Supply indigenous private cloud and HCI to meet localization and sovereignty demand

3. AI Infrastructure: Innovation across AI compute layers with differentiated design, advanced power and liquid cooling

4. Future Opportunities: Physical AI and Quantum Computing R&D, engagement with National Quantum Mission ecosystem

Customer Base

The company maintains long-standing relationships with marquee customers across government, PSUs, research/academia, and large enterprises including IT & ITES, media & entertainment, telecom, and cloud service providers.