Netweb Technologies India (NETWEB) Q3 24/25 earnings summary

Executive summary

• Achieved record quarterly income of INR 3,340 million and PAT of INR 303 million in Q3 FY25, with nine-month operating income up 60.3% YoY to INR 7,344 million.

• AI segment contributed 14.7% of nine-month FY25 operating revenue, growing 136.3% YoY; exports accounted for 7.9%–9.0% of revenue.

• Unaudited standalone financial results for the quarter and nine months ended December 31, 2024, were approved and released following a board meeting on January 18, 2025.

• Financial statements reviewed by the audit committee and statutory auditors, with no material misstatements identified.

• Strong business pipeline and robust order book, with ongoing capability enhancements and product expansion supporting sustained growth.

Financial highlights

• Operating income for nine months FY25 rose 60.3% YoY to INR 7,344 million; Q3 FY25 revenue was INR 3,339.92 million, up from INR 2,534.01 million in Q3 FY24.

• Operating EBITDA for nine months FY25 increased 61.4% YoY to INR 1,002 million; EBITDA margin at 13.7%.

• PAT for nine months FY25 up 54.6% YoY to INR 715 million; Q3 FY25 net profit was INR 302.66 million, up from INR 260.25 million in Q3 FY24.

• Diluted EPS for 9M FY25 at ₹12.68, up 50% YoY; Q3 FY25 EPS at ₹5.38.

• Net debt at negative INR 737 million (excluding unutilized IPO proceeds); cash conversion cycle improved to 88 days from 100 days sequentially.

Outlook and guidance

• Medium-term revenue growth guidance maintained at 30%-35% CAGR; EBITDA margin expected to remain around 14%.

• Export revenue expected to be 10%-11% of total sales in the next year, with similar margin profile to domestic business.

• Strong business pipeline with order book at ₹3,603 Mn and pipeline at ₹38,149 Mn as of Dec'24.

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

• No near-term absolute revenue guidance; focus remains on sustainable long-term growth.