Netweb Technologies Q1 FY26: PAT up 100%, margin 14.9%

Market snapshot and what investors tracked

Netweb Technologies India’s stock data in the provided update shows a decline of 165.70 points, or 3.76%, to 4,243.75. Another quoted level shows 4,257 down 154.50 points, or 3.50%. The update also lists “Today: 4,240.05” and “4,444.00”, indicating a trading range captured in the same feed.

While price moves can be driven by multiple factors, the key fresh trigger in this context was the company’s quarterly performance prints and the way investors weighed year-on-year growth against quarter-on-quarter changes.

Q1 FY26 results: strong YoY growth, weaker QoQ comparison

For the quarter ended June 2025 (Jun 25), Netweb reported total revenue of ₹301.21 crore, compared with ₹149.32 crore in the year-ago quarter (Jun 24). Net income (PAT) for Jun 25 came in at ₹30.48 crore versus ₹15.44 crore in Jun 24. Operating income was ₹41.48 crore in Jun 25 against ₹17.57 crore in Jun 24.

The data also includes a quarter-on-quarter comparison against March 2026 (Mar 26). On that basis, revenue in Jun 25 is shown lower versus ₹773.70 crore in Mar 26, and net income is lower versus ₹70.59 crore in Mar 26. Diluted normalized EPS is reported at ₹5.38 in Jun 25, compared with ₹12.43 in Mar 26 and ₹2.74 in Jun 24.

The same table shows total operating expense at ₹259.73 crore in Jun 25, versus ₹680.96 crore in Mar 26 and ₹131.75 crore in Jun 24. Depreciation and amortization stood at ₹3.32 crore in Jun 25.

Key profit and margin indicators disclosed for Q1

Alongside the tabular results, the update includes additional metrics for the first quarter of FY26. It states revenue for Q1 FY26 at ₹301.2 crore (₹3,012 million), operating EBITDA at ₹44.8 crore (₹448 million), and PAT at ₹30.5 crore (₹304.8 million). The operating EBITDA margin is given as 14.9%, and the PAT margin as 10.1%.

The update also lists return on equity at 22.4% and return on capital employed at 30.6% for Q1 FY26. It notes the company had “0 net debt” and net free cash of ₹47.52 crore (₹475.2 million) as on June 30.

AI systems contribution and order visibility

The AI systems segment is highlighted as a major growth driver in the provided material. AI revenue accounted for 29% of total operating revenue in Q1 FY26, with 300% year-on-year growth. The text also references execution of a large AI defence order and the launch of Skylus.ai as notable developments linked to the quarter’s performance.

On demand visibility, the update states that order book and L1 together were around ₹700 crore, and that the pipeline was approximately ₹4,000 crore, with a conversion ratio of about 60% mentioned in the same context. It also states that around 60% of Q1 revenue came from government projects, with the remainder from enterprise.

Q4 FY26 results: full-year momentum and balance sheet position

Separately, the feed includes a Q4 FY26 result summary. For Q4 FY26, operating income is stated at ₹773.70 crore (₹7,737.0 million), with year-on-year growth of 86.6%. Operating EBITDA is stated at ₹96.57 crore (₹965.7 million), up 63.0% year-on-year, with EBITDA margin at 12.5%. Adjusted operating EBITDA is stated at ₹101.81 crore (₹1,018.1 million) with adjusted margin of 13.2%.

PAT for Q4 FY26 is listed at ₹70.59 crore (₹705.9 million), up 65.7% year-on-year, with PAT margin at 9.0%. Net debt is stated as nil, with net free cash of ₹83.30 crore (₹833.0 million) as at March 31, 2026. The same section quotes management commentary that revenue from operations reached ₹2,183.6 crore (₹21,836 million) in FY26, reflecting 90.0% year-on-year growth.

How Q4 FY25 compared on the same metrics

The update also contains a Q4 FY25 snapshot. It states operating income at ₹414.7 crore (₹4,147 million), operating EBITDA at ₹59.8 crore (₹598 million) with EBITDA margin of 14.4%, and PAT at ₹43.0 crore (₹430 million) with PAT margin of 10.3%. Net debt is shown at -₹162.13 crore (₹(1,621.3) million) as on March 2025. Order book is listed at ₹325.2 crore (₹3,252 million) as on March 2025.

It also notes that income from AI Systems grew 112.0% year-on-year during FY25, and its contribution to operating revenue increased to 14.8% during the same period.

Results table: Q1 (Jun 25) vs Mar 26 vs Jun 24

Summary table: Q4 FY26 vs Q4 FY25 (as stated)

Market impact: what the numbers change for investors

The Q1 FY26 data set presents two clear signals at the same time. First, year-on-year growth is sharp, with Q1 revenue at ₹301.21 crore versus ₹149.32 crore in the year-ago quarter, and PAT at ₹30.48 crore versus ₹15.44 crore. Second, the same table shows lower numbers versus the immediately preceding quarter (Mar 26) on revenue and profit.

In parallel, the disclosed margin metrics for Q1 FY26 place operating EBITDA margin at 14.9% and PAT margin at 10.1%, while the Q4 FY26 snapshot shows operating EBITDA margin at 12.5% and PAT margin at 9.0%. Investors typically track these margins closely, especially when the company also reiterates a margin guidance framework in the update.

Why the AI mix and order visibility matter in this update

The update repeatedly points to AI systems as a material contributor, with AI revenue at 29% of Q1 operating revenue and 300% year-on-year growth. It also references execution linked to a defence order, along with a product initiative, Skylus.ai. These items matter because they help explain the demand mix behind the quarter and why a higher AI share can influence quarterly margins.

Order book and pipeline data provide an additional layer of context. The material cites order book and L1 of around ₹700 crore, with a pipeline around ₹4,000 crore, and a conversion ratio of about 60%. It also states the current pipeline does not include IndiaAI Mission projects, while management expects traction from that initiative to begin during the year.

Conclusion

Netweb’s Q1 FY26 numbers, as provided, show revenue of ₹301.21 crore and PAT of ₹30.48 crore, alongside reported margins of 14.9% at the EBITDA level and 10.1% at the PAT level. The same feed also includes Q4 FY26 details, including PAT of ₹70.59 crore and FY26 revenue from operations of ₹2,183.6 crore. The next steps investors are likely to track from the supplied information are the company’s earnings call references and how the stated order book, L1, and pipeline translate into reported quarters ahead.