Netweb Technologies India (NETWEB) Q2 25/26 earnings summary

Executive summary

• Secured two large strategic orders worth INR 21,840 million to be executed by FY 2027, reinforcing leadership in high-end computing and AI infrastructure.

• Operating income grew 51.1% year-over-year in H1 FY 2026, with Q2 FY 2026 operating income up 21% year-over-year to INR 3,037 million.

• PAT for H1 FY 2026 reached INR 619.1 million, up 49.5% year-over-year, with Q2 FY 2026 PAT at INR 314.3 million, up 20.1% year-over-year.

• AI segment revenue contribution rose from 14.7% in H1 FY 2025 to 25.4% in H1 FY 2026, a 160.7% year-over-year increase.

• Unaudited standalone financial results for the quarter and half year ended September 30, 2025, were approved and reviewed by the Board and auditors, with no material misstatements identified.

Financial highlights

• Q2 FY 2026 operating EBITDA rose 25.1% year-over-year to INR 454.6 million, with a 15% margin; H1 FY 2026 operating EBITDA up 60.6% year-over-year to INR 903.2 million, margin at 14.9%.

• EPS for Q2 FY 2026 at 5.55, up 19.5% year-over-year; H1 FY 2026 EPS at 10.93, up 48.7% year-over-year.

• Revenue from operations for Q2 FY 2026 was INR 3,037.24 million, up from INR 2,510.62 million in Q2 FY 2025.

• Net profit for Q2 FY 2026 stood at INR 314.33 million, compared to INR 261.83 million in Q2 FY 2025.

• H1 FY 2026 return on equity was 22.4%, and return on capital employed was 30.2%.

Outlook and guidance

• Organic business growth guidance remains at 35%-40% CAGR for the next few years.

• EBITDA margin guidance maintained at 13%-14% as the company transitions to large scalable orders.

• Strategic orders to be executed by FY 2027, with about one-third expected in FY 2026.

• Expansion into Europe and Middle East planned, with new service networks in four countries.

• The company changed its inventory valuation method to moving weighted average cost from FIFO, applied retrospectively for better cost matching and industry comparability.