Netweb Technologies India (NETWEB) Q1 25/26 earnings summary

Executive summary

• Revenue from operations grew 102% year-over-year to ₹3,012.12 million, with operating EBITDA up 127% YoY to ₹448 million and PAT up 100% YoY to ₹305.66 million for Q1 FY26, driven by robust AI and defense sector orders.

• AI systems contributed 29% of operating revenue, growing 300% YoY, and the company launched Skylus.ai, a unified GPU orchestration platform.

• Maintains a strong order book and continues investing in innovation, talent, and manufacturing capacity.

• Approved unaudited financial results for the quarter ended June 30, 2025, with board meeting held on July 31, 2025.

• Scheduled the 26th Annual General Meeting for August 30, 2025, via video conferencing.

Financial highlights

• Operating income for Q1 FY26 reached ₹3,012.12 million, up 102% YoY, with operating EBITDA at ₹448 million and margin at 14.9%.

• PAT was ₹305.66 million, up 100% YoY, with PAT margin at 10.1%.

• Diluted EPS for the quarter was ₹5.38, up 99.3% YoY.

• Net free cash stood at ₹475.2 million as of June 30, with zero net debt.

• Revenue from government customers: 59.5%; non-government: 40.5%.

Outlook and guidance

• EBITDA margin guidance remains at around 14%, with PAT margin between 10% and 10.5%.

• Revenue growth guidance for FY26 is maintained at 35%-40%.

• AI segment guidance raised to 22% of total business by year-end, up from previous 20%.

• Positioned for sustained growth with a strong order pipeline (₹41,421 million), L1 (₹4,640 million), and order book (₹2,299 million) as of June 30, 2025.

• Final dividend for FY 2024-25 to be paid on or before September 29, 2025, subject to shareholder approval.