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

Executive summary

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

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

• Board approved unaudited financial results for Q1 FY26 and scheduled the 26th AGM for August 30, 2025.

• Final dividend for FY 2024-25 proposed, pending shareholder approval.

Financial highlights

• Q1 FY26 operating income: ₹3,012.12 million, up 102% YoY, with operating EBITDA at ₹448 million (margin 14.9%) and PAT at ₹305.66 million (margin 10.1%).

• Diluted EPS for the quarter was ₹5.38, up from ₹2.70 YoY.

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

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

• Gross margin improved YoY, with profit before tax at ₹416.06 million versus ₹204.08 million YoY.

Outlook and guidance

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

• Revenue growth guidance for FY 2026 is maintained at 35%-40%.

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

• Strong order book and healthy pipeline support confidence in sustained growth and technological leadership.

• Foray into Europe and Middle East with plans to set up service networks in four countries.