Netweb Technologies Q3 Profit Soars 147% on Strong AI Demand

Netweb Technologies India Limited has announced a record-breaking financial performance for the third quarter of fiscal year 2026, which ended on December 31, 2025. The company reported its highest-ever quarterly income and profit, driven by strong demand in its Artificial Intelligence (AI) systems division. The results, approved by the Board of Directors on January 17, 2026, underscore a period of significant growth for the high-end computing solutions provider.

Exceptional Quarterly Performance

The company's operating income for Q3 FY26 surged to ₹8,049.3 million, a substantial increase of 141.0% compared to the ₹3,339.9 million recorded in the same quarter of the previous fiscal year. This robust top-line growth was also reflected on a sequential basis, with operating income rising 165.0% from Q2 FY26. Total income for the quarter reached ₹8,115.6 million, marking a 141.9% year-over-year increase.

Surge in Profitability

Netweb's profitability metrics showed remarkable improvement. Profit After Tax (PAT) for the quarter stood at ₹733.1 million, a 146.7% year-over-year jump from ₹297.2 million in Q3 FY25. The PAT margin improved slightly to 9.0%. Operating EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew by 127.1% year-over-year to ₹979.5 million, although the operating EBITDA margin saw a slight compression to 12.2% from 12.9% in the prior year's quarter.

AI Systems Lead the Charge

The primary catalyst for this exceptional performance was the AI Systems segment. This division contributed approximately 64.2% of the total revenue in Q3 FY26, highlighting the company's successful positioning in the high-growth AI infrastructure market. During the quarter, Netweb successfully executed a significant strategic order valued at ₹4,503.9 million, which bolstered the segment's contribution. For the nine-month period of FY26, the AI Systems segment accounted for 47.6% of total revenue.

Management Commentary

Mr. Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, expressed satisfaction with the results. He stated that the company delivered a record quarter, achieving its highest-ever income and profit. Mr. Lodha also emphasized the company's dedication to in-house design and manufacturing, which aligns with the government's 'Make in India' initiative and strengthens India's position as a global manufacturing hub.

Financial Highlights at a Glance

Nine-Month Financial Overview

Looking at the performance for the first nine months of FY26, Netweb Technologies has demonstrated consistent growth. The company's operating income for the 9M FY26 period was ₹14,098.6 million, a 92.0% increase from the same period last year. Profit After Tax for the nine months grew by 90.1% to ₹1,352.2 million, compared to ₹711.4 million in 9M FY25.

Market Impact and Stock Performance

The strong financial results were well-received by the market. Following the announcement, the shares of Netweb Technologies ended the session on Friday, January 16, with a gain of nearly 6%. This positive momentum reflects investor confidence in the company's growth trajectory and its strategic focus on the AI sector.

Conclusion

Netweb Technologies' Q3 FY26 results clearly indicate a strong growth phase, propelled by its leadership in the AI systems market. The record-breaking income and profit, coupled with a robust order book, position the company for sustained expansion. As India continues to invest in its AI and high-performance computing capabilities, Netweb's alignment with the 'Make in India' initiative and its technological expertise are expected to be key drivers of future performance.