Netweb Technologies shares gain 5% in two sessions after Q2 results; analysts remain bullish

Shares of Netweb Technologies rose nearly 5% over two sessions after the high-performance computing and AI systems maker reported a sharp increase in September-quarter revenue, recovering part of the losses sustained in the preceding five sessions.

Netweb Technologies shares gained as much as 3.13% to ₹4,490 on Wednesday, after rising 1.6% in the previous session. The two-session advance followed a 10% decline over the previous five sessions, including a 5.57% fall on October 23.

Brokerages have retained a positive view of the stock following Netweb’s strong Q2 FY27 performance, citing a robust order pipeline, rising demand for AI infrastructure and opportunities across high-performance computing and enterprise applications.

Netweb Technologies reported a 334.8% year-on-year surge in net profit to ₹136.7 crore in Q2 FY27, while revenue rose 336% to ₹1,323.3 crore. EBITDA margin stood at 14.9%, and the profit-after-tax margin was 10.3%.

ICICI Securities, IIFL Capital give buy rating

ICICI Securities has maintained its ‘Buy’ rating on Netweb Technologies with a target price of ₹5,990 for September 2027, valuing the company at 65 times its estimated earnings. Meanwhile, IIFL Capital has initiated coverage with a ‘Buy’ rating and a target price of ₹5,700, based on 50 times its estimated September 2027 earnings.

ICICI Securities expects Netweb to sustain strong growth, supported by an expanding pipeline and demand across its strategic businesses. The brokerage highlighted the company’s ₹11,100-crore order pipeline, up 165% year-on-year, as a key source of revenue visibility. It also noted significant growth in the company’s organic order book, letter of intent (L1) position and pipeline, which rose 432%, 88% and 165%, respectively, year-on-year.

The brokerage expects Netweb to deliver an organic compound annual growth rate (CAGR) of 35-40%, supported by demand for high-performance computing (HPC), high-performance computing infrastructure (HCI), artificial intelligence (AI) and embedded systems. These segments recorded 369% year-on-year growth in the September quarter, according to ICICI Securities.

IIFL Capital also sees sustained growth opportunities, with AI systems accounting for around ₹770 crore, or 58%, of Netweb’s Q2 revenue. The brokerage estimated organic revenue at ₹570 crore, up 86% year-on-year and 47% sequentially.

Netweb’s order book stood at ₹2,629 crore, with an additional ₹652.5 crore in orders at the letter-of-intent stage, taking the combined order book and L1 position to around ₹3,280 crore. IIFL Capital estimated the company’s overall pipeline at ₹11,200 crore.

The brokerage expects Netweb’s revenue to reach ₹4,220 crore in FY27, representing growth of around 93% year-on-year, compared with management’s target of more than ₹4,000 crore. It projects sales and profit to grow at CAGRs of 36% and 37%, respectively, between FY27 and FY29, and expects medium-term growth of 30-40%.

Both brokerages see opportunities from rising demand for sovereign AI infrastructure, data centres and computing systems among private enterprises. The proposed National Supercomputing Mission 2.0 could provide an additional growth driver, while emerging areas such as physical AI and quantum computing offer longer-term opportunities.

ICICI Securities has also pointed to Netweb’s plans to strengthen its research and development capabilities through its Taiwan subsidiary. The Netweb’s proposed qualified institutional placement (QIP) of around ₹1,200 crore is also expected to strengthen its balance sheet and support its growth plans, it said.

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