Netweb Technologies India (NETWEB) Q4 24/25 earnings summary

Executive summary

• Achieved record operating income and PAT for Q4 and FY 2025, with Q4 operating income up 55.9% YoY to ₹4,146.5 million and PAT up 45% YoY to ₹429.9 million.

• Board recommended a final dividend of ₹2.50 per share (125% of face value), with a payout ratio of 12.4%, subject to shareholder approval.

• Received first claim under PLI scheme 2.0 for IT hardware, amounting to ₹59.4 million.

• Successfully deployed SAP S/4HANA for enhanced operational and financial process control.

• Audited financial results for FY25 were approved with an unmodified audit opinion from statutory auditors.

Financial highlights

• FY25 operating income rose 58.7% YoY to ₹11,490.2 million; Q4 FY25 income was ₹4,146.5 million.

• FY25 operating EBITDA up 56.1% YoY to ₹1,600.1 million; Q4 FY25 EBITDA was ₹597.7 million.

• FY25 PAT up 50.8% YoY to ₹1,144.8 million; Q4 FY25 PAT was ₹429.9 million.

• EBITDA margin for FY25 was 13.9%; PAT margin was 9.9%.

• Cash and cash equivalents at year-end were ₹1,700.83 million; net free cash of ₹1,621.3 million as of March 31, 2025; zero net debt.

Outlook and guidance

• Confident in achieving 35%-40% CAGR in top-line growth over the next couple of years.

• Guiding for operating EBITDA margin of 13%-14% and PAT margin around 10% for the upcoming fiscal year.

• Robust business pipeline with ₹39,714 million, L1 of ₹3,628 million, and order book of ₹3,252 million as of March 31, 2025.

• AI segment expected to reach 19%-20% of revenue in the next 1-2 years, up from 14.8%-15%.

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