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Convergence of GenAI demand, government policy support on IndiaAI Misssion and the domestic manufacturing push has created a long runway of growth with high end AI infrastructure as a critical part for the coming decade
Source: Investor Deck
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While the results are good and overall growth prospect also seem promising, I am not able to understand why promoter, fii and dii are reducing their stakes QoQ but public holdings have increased. See below data from screener -
A bit concerned as this can typically be a sign of smart money exiting and narrative being sold to the retailer.
Disclosure: Holding Netweb for long term
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Quarterly Performance Tracker:
| Metric / Guidance Item | Original Guidance / Target (Source) | Timeline | Q1FY26 | Q2FY26 Value | Q3 FY26 Actual (₹ Cr) | Q4FY26 / FY26 Actual Value / Data |
|---|---|---|---|---|---|---|
| Revenue growth (YoY) | 35-40% CAGR for 2 years (Business Update Q4FY25), reiterated (Q1Fy26), 35-40% CAGR for 3 years atleast (Q2FY26), 35%-40% organic growth rate (excluding big strategi AI orders) reiterated (Q4FY26) | FY27–FY28 | 301 cr (102% YoY growth) | Revenue ₹303.7 crore, +20.98% YoY (₹251 crore in Q2FY25). | ₹804.9 Cr revenue; +141% YoY | Q4FY26 revenue: ₹773.7 Cr, +86.6% YoY; FY26 revenue: ₹2,183.6 Cr, +90.0% YoY. |
| EBITDA margin | 13-14% guided margin (Business Update Q4FY25) | FY25,FY27-FY28 | 14.90% | EBITDA ₹45.46 crore; Margin 15% (vs 14.3% in Q1FY26). | 12.20% | Q4FY26 adjusted EBITDA margin: 13.2%; reported operating EBITDA margin: 12.5%. FY26 adjusted EBITDA margin: 13.3%; reported operating EBITDA margin: 13.0%. |
| PAT margin | 10% PAT margin for FY26 (Business Update Q4FY25) | FY26 target | 10.10% | PAT ₹31.43 crore; Margin 10.3% | 9.00% | Q4FY26 PAT margin: 9.0%; FY26 PAT margin: 9.3%. |
| Inventory | Management explained inventory build-up as intentional: raw material stock was built to support large strategic orders and secure key inputs amid surging AI compute demand. | 259.25 | Inventory as on Mar’26: ₹804.8 Cr; Inventory days: 86 days vs 60 days in Dec’25 and 53 days in Mar’25. | |||
| Inventory (from balance sheet)/revenue from operation | 259.25/(303.72+301.21)=42.85% | Inventory / FY26 revenue = ₹804.8 Cr / ₹2,183.6 Cr = 36.9% | ||||
| Receivables | 417 | Trade receivables as on Mar’26: ₹670.0 Cr; Receivable days: 86 days vs 114 days in Dec’25 and 87 days in Mar’25. | ||||
| Receivables/Revenue from operation | 417/604.93= 69% | Receivables / FY26 revenue = ₹670.0 Cr / ₹2,183.6 Cr = 30.7% | ||||
| CFO/PAT | 30.57% | CFO: ₹171.5 Cr; PAT: ₹205.8 Cr; CFO/PAT = 83.3%. | ||||
| AI revenue share | AI to contribute ~20% of revenue by FY26 (Business Update Q4FY25), 20-22% by FY26(Q1Fy26) | FY26 | 29% | 25.4% of H1FY26 revenue (vs 14.7% H1FY25).24% of AI revenue came from govt clients (defense/space). | ~64% (Q3); ~48% (9M) | AI Systems contributed 43.4% of FY26 operating revenue; AI Systems grew 459.6% YoY. |
| Export revenue share | To maintain ~5-7% of revenue (Business Update Q3FY25), reiterated, won’t go beyond 10%(Q1FY26), domestic AI demand is very strong, so exports are not the immediate focus; (Q4FY26) | Ongoing | Exports not separately disclosed in Q2; contribution remains small (<10%). | Not disclosed | ~5% indicated by management; | |
| Order book growth | Implied: strong inflow to sustain 35-40% growth (Business Update Q4FY25) | FY25 | Order book: 230 cr+L1: 464 cr | (₹494 crore) organic order book + L1 in 348 cr+ ₹2,100 crore strategic orders. | ₹857.4 Cr (organic order +L1) | As on 31-Mar-26: Organic order book: ₹472.4 Cr, Strategic big-ticket orders: ₹1,625.2 Cr, L1: ₹327.8 Cr; total near-term visibility including L1: ₹2,425.4 Cr. |
| Pipeline conversion | 60% pipeline conversion (Business Update Q4FY25) | Ongoing | Conversion trend steady; L1 value ~₹348 crore (≈8.7% of funnel). | ~₹4,270 Cr | Pipeline: ₹4,431.5 Cr excluding L1 and order book. Potential conversion at 60% = ~₹2,659 Cr over ~18 months. | |
| Working capital / cash conversion | Cash conversion cycle to remain ~100 days (Business Update Q2FY25), 80 to 100 days(q1FY26), 90 to 110 days (Q4FY26) | FY25 | Receivable days: ~117 days (improved from 124). | Net Current Assets ₹445 Cr (₹302 Cr in Mar-25) | Receivable days: 86, Inventory days: 86, Payable days: 88, CCC: 84 days. | |
| 5G ORAN product launch | Product to be ready in 1-2 quarters (Business Update Q3FY25) | FY26 H1 | No info | Pilot deployments underway; commercial contribution minimal in Q2FY26. | — | No Q4FY26 actual disclosed. |
| NVIDIA Blackwell platform AI systems | Rollout within next 4 months from Q3FY25 (Business Update Q3FY25) | FY26 H1 | No info | Implementation in progress; part of sovereign AI compute infrastructure program. | NVIDIA-based AI systems delivered | Q4 PPT states Netweb has established a roadmap under its NVIDIA OEM partnership to design and manufacture AI GPU systems based on the NVIDIA Blackwell platform. |
| Capex plans | No major new capex planned (Business Update Q4FY25), no significant capex expansion expected in FY27 (Q4FY26) | Near-term | No info | Capex phase completed; facility now supports high-end GPU integration. | No new capex announced | New 15,000 sq. ft facility commissioned for dense GPU AI systems; current capex sufficient for growth. |
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