Netweb Technologies: FY26 was the year AI Systems changed the revenue mix

Netweb Technologies India Limited ended FY26 with a sharp step-up in scale, driven by India’s accelerating build-out of high-end compute infrastructure. Revenue from operations rose to ₹2,183.6 crore, up 90.0% year-on-year. Profit after tax increased to ₹205.8 crore, up 80.9% year-on-year, with a PAT margin of 9.3%.

Q4 FY26 also remained strong. Revenue from operations came in at ₹773.7 crore, up 86.6% year-on-year. PAT was ₹70.6 crore, up 65.7% year-on-year, with a PAT margin of 9.0%. Operating profitability stayed resilient. Full-year operating EBITDA was ₹284.8 crore with a 13.0% margin, while adjusted operating EBITDA was ₹290.1 crore with a 13.3% margin. The adjustment relates to adding back hedging gains that offset mark-to-market losses on certain payables.

The year’s defining change was the rise of AI Systems as the largest revenue contributor. Management stated AI Systems grew 459.6% year-on-year in FY26 and contributed 43.4% of total operating revenue, supported by in-house R&D, new product development, and execution of large national-scale orders.

What drove FY26 growth: AI at the center, but HPC and Private Cloud also expanded

Netweb’s business spans High-end Computing Solutions (HCS), with a broad portfolio across supercomputing or HPC systems, private cloud and hyperconverged infrastructure, AI Systems, storage, data centre servers, and software and services.

FY26 revenue by offering shows how rapidly the AI Systems segment scaled. AI Systems revenue rose to ₹947.8 crore (43% of FY26 revenue by offering), compared with ₹169.4 crore in FY25. The presentation notes that FY26 includes execution of a strategic order valued at ₹558.8 crore.

The two other core pillars also grew meaningfully. HPC systems reached ₹530.8 crore in FY26 (24%), up from ₹405.5 crore in FY25. Private cloud and HCI reached ₹517.0 crore in FY26 (24%), up from ₹402.7 crore in FY25. Management emphasized that these segments are not stagnant, but are appearing lower as a percentage because AI Systems expanded much faster.

Financial summary

Note: Adjusted EBITDA includes adding back ₹5.24 crore of hedging gains to offset MTM losses on payables, as described by management.

Order visibility, working capital, and the balance sheet picture

Netweb ended FY26 with disclosed topline visibility across pipeline, L1, order book, and strategic orders. The presentation reported a pipeline of ₹4,431.5 crore, L1 of ₹327.8 crore, an organic order book of ₹472.4 crore, and strategic big-ticket orders of ₹1,625.2 crore. In the concall, management also described entering FY27 with a firm order book of around ₹2,100 crore and an L1 inclusive order book of around ₹2,400 crore.

Working capital moved higher in Q4 due to inventory build. The cash conversion cycle increased to 84 days in March 2026 from 69 days in December 2025. Receivable days improved to 86 from 114, reflecting stronger collections. However, inventory days increased to 86 from 60, which management attributed to raw material stocking for large strategic orders and securing key inputs amid global demand for AI compute infrastructure.

The balance sheet reflects both higher scale and increased short-term funding. As of March 2026, cash and cash equivalents were ₹365.5 crore, and net free cash was ₹83.3 crore. Borrowings rose to ₹271.7 crore. Management said these borrowings were short-term in nature, largely to fund the working capital required for large strategic orders, and described them as transitionary. Return metrics remained high, with ROE at 32.9% and ROCE at 37.5% as of March 2026.

Strategy and capability expansion: dense GPU systems, liquid cooling, and new launches

Netweb continues to position itself as a full-stack domestic OEM aligned with Make in India and sovereign compute infrastructure needs. Capability expansion was a recurring theme in both the presentation and the concall.

The company commissioned a new 15,000 sq ft production facility focused on manufacturing and testing dense GPU AI systems. Management said the facility supports higher density per rack and enables scaling beyond 150 kilowatt per rack architectures, while also helping build a complete range of liquid-cooled systems.

The company also highlighted an OEM roadmap with NVIDIA to design and manufacture AI GPU systems based on the NVIDIA Blackwell platform. It entered a strategic collaboration with Vertiv to design and deliver advanced liquid-cooled AI systems for large-scale deployments.

On the product side, Netweb introduced Skylus.ai, described as a unified AI orchestration utility to set up GPU-based AI infrastructure quickly. The presentation also highlighted additions spanning AI edge to data center workloads and storage, including Tyrone Camarero Spark, Tyrone Camarero GB200, and Tyrone ParallelStor Velox.

What management guided for the next phase

Management guidance in the concall focused on sustaining growth and maintaining profitability. The CFO guided 35% to 40% revenue growth over the next couple of years, and operating EBITDA margin in the 13% to 14% range over the next couple of years. The company indicated there is no significant capex expansion expected in FY27, with only routine capex.

Management also stated that remaining execution of the strategic orders is expected over the next three quarters from the date of the call. On exports, management said the company’s focus is currently on fulfilling domestic demand, with exports remaining around 5%.

Takeaways

FY26 shows Netweb’s ability to scale rapidly while staying within a broadly stable profitability band. The biggest change is the revenue mix shift, with AI Systems becoming the largest segment by offering. At the same time, disclosed customer concentration has increased, and working capital can fluctuate with large, strategically significant orders. The company is leaning into capability upgrades, including dense GPU manufacturing and liquid-cooled systems, while guiding for sustained growth of 35% to 40% and operating EBITDA margins of 13% to 14% over the next couple of years.