Netweb Technologies shares jump 12% on record Q3; stock up 6.5x from IPO price

Netweb Technologies shares jumped nearly 12% in intraday trade on Monday as investors cheered the company’s record December-quarter performance, with revenue and profit hitting all-time highs. The homegrown high-end computing solutions (HCS) provider has now rallied close to 18% over the past two sessions, driven by optimism around its Q3 earnings.

Buoyed by the strong results, Netweb Technologies surged as much as 11.9% to ₹3,750 on the BSE. The company’s market capitalisation climbed to around ₹19,800 crore, with over 6 lakh shares changing hands during the session. On Friday, the IT stock had ended 5% higher at ₹3,351.05.

Netweb Technologies, which made its stock market debut on July 27, 2023, has delivered a staggering 650% return in less than three years from its IPO price of ₹500 per share. The stock hit an all-time high of ₹4,480 on October 8, 2025, and touched its 52-week high of ₹4,278.85 on April 7, 2025.

The New Delhi-based company has outperformed broader market indices over the past 12 months. The scrip is up 12.7% year-to-date and 49.9% over the past year, even as the BSE IT index declined 10.1% and the BSE Smallcap index fell 6.1% over the same period.

Over the past three months, the stock has witnessed some volatility, declining 8.6% amid broader market weakness and valuation concerns in the small-cap space. In contrast, the BSE IT index gained 9.7% during the same period, while the BSE Smallcap index slipped 7.3%.

What fuelled the rally?

The rally followed Netweb Technologies’ announcement of a record-breaking Q3 performance, with profit after tax (PAT) surging 146.7% year-on-year and 133% quarter-on-quarter to ₹73.31 crore. Operating income jumped 141% YoY to ₹804.93 crore, driven by strong execution of large strategic orders, particularly in AI computing infrastructure.

Operating EBITDA rose 127% year-on-year to ₹97.95 crore, up from ₹44 crore a year earlier. However, margins declined both sequentially and year-on-year to 12.2% in Q3 FY26. Management noted during the earnings call that the execution of large strategic orders would impact PBT margins by around 150–200 basis points.

As of December 31, 2025, the company reported a net cash position of ₹190.08 crore and remained net debt-free, providing ample headroom for future growth investments.

A key driver of the strong performance was the AI Systems segment, which contributed 64.2% of Q3 FY26 revenue and 47.6% of revenue for the first nine months of FY26. During the quarter, Netweb executed a large strategic order worth ₹450.39 crore, which management described as being of national significance and aimed at strengthening India’s AI compute infrastructure.

While AI has emerged as the dominant growth engine, the company noted that its high-performance computing (HPC) and Private Cloud segments are also witnessing sustained demand, providing diversification within its high-end computing solutions portfolio.

Strategic AI order boosts revenue mix

“During the quarter, Netweb successfully executed a large strategic order valued at ₹4,503.9 million, reaffirming its position as India’s largest OEM in high-end computing solutions. As communicated earlier, this implementation is of national significance, aimed at strengthening India’s AI compute infrastructure,” said Sanjay Lodha, Chairman and Managing Director, Netweb Technologies.

He said that the AI Systems contribution to revenue stood at 64.2% in Q3 FY26 and 47.6% in 9M FY26. “We would also like to emphasise that alongside the accelerated growth in AI, our other two core segments, HPC and Private Cloud, are also witnessing strong and sustained demand.”

“Netweb’s continued focus on its three strategic growth pillars—HPC, Private Cloud and AI Systems—is enabling us to capitalise on strong industry tailwinds. Supported by these core strengths, we continue to remain a technology leader in the High-End Computing Systems (HCS) space,” he added.