NetWeb’s business is operating at a tremendous pace as the AI trend continues to grow rapidly. The company is currently witnessing one of its strongest phases ever. It has reported a significant performance, with revenue rising by around 90%. The company has crossed the ₹2000 crore mark, with total revenue for financial year 2026 coming in at ₹2,184 crore. This strong growth is one of the key reasons why the stock price has remained stable, even amid the ongoing Middle East crisis.
Each of the company’s segments is witnessing strong growth. Earlier, the major revenue contributors were the HPC systems and HCI private cloud businesses, with both segments contributing around 35% each in FY25.
However, in FY26, the company has seen a sharp surge in its AI systems segment. Its contribution has increased from 15% to 43% of total revenue. In absolute terms, this segment has grown nearly 450% year-on-year, rising from ₹169 crore in FY25 to around ₹945 crore in FY26. This has become one of the key growth drivers for the overall business.
Apart from this, the HPC high-performance computing segment has also grown in absolute terms. Although its revenue share has declined from 35% to 24%, the segment revenue has increased from ₹4,05 crore to ₹5,30 crore.
In the last quarter, the company highlighted additional segments where it is focusing on growth and expanding its presence. These include the data centre business, software and services (including ACS offerings), and the spare parts business. Together, these three segments contributed nearly 22% of total revenue.
This is important because it shows that the company is not dependent on a single segment. Instead, it is building a diversified business model with multiple growth drivers. This diversification strengthens the company’s overall position and supports the long-term sustainability of its business.
If we look at the key metrics, the company’s operating income has surged by nearly 90%, increasing from ₹1,110 crore to ₹2,100 crore, which is a significant highlight.
Along with strong revenue growth, the company is also maintaining healthy EBITDA growth. EBITDA has increased by 82.4%, rising from ₹159 crore to ₹290 crore, which is an important positive indicator.
However, on the margin side, there is a slight decline. The EBITDA margin has decreased by around 56 basis points, from 13.8% to 13.3%. This indicates a minor pressure on margins, even though overall profitability in absolute terms has improved.
The company is building a strong and long-term order book, which supports business visibility. Being one of India’s leading players in the supercomputing and data centre space, the company is well-positioned to benefit from increasing government alignment and participation in large projects.
The project pipeline is estimated at around ₹4,431 crore, which is a positive indicator for future growth. Additionally, the current order book stands at approximately ₹472 crore. Together, these factors provide strong revenue visibility and indicate that the company is moving toward a more sustainable and confident growth trajectory over the next few years.
The company has a strong growth outlook and high confidence in its business. It is guiding for a CAGR of around 30% over the next few years. One of the key reasons behind this is the increasing contribution from the private sector, which now accounts for nearly 58% of revenue, while the government contributes around 42%.
The company has a strong and diversified client base. In the private sector, major players like Infosys and Reliance Jio are among its clients. On the government side, it works with key organizations such as Aadhaar, NPCI, ISRO, and the Ministry of Defence. This diverse customer base builds strong trust and credibility for the company.
Additionally, the company focuses on end-to-end solutions, which further strengthens client relationships. India’s data localization policies, which emphasize that data should remain within the country, also create strong long-term opportunities for the company, especially as global players continue to operate in India.
In terms of customer metrics, revenue from repeat customers stood at around 81.4% in FY25 and came in at 75.6% in FY26. While there is a slight decline, it reflects the addition of new clients and overall business expansion. The company onboarded 131 new clients in FY26, indicating growing demand and continued trust in its offerings.
In conclusion, considering the overall analysis, the company operates in a strong and high-growth segment. The industry itself is expanding rapidly, supported by both government initiatives and increasing participation from private players. This creates a positive outlook, and the company is well-positioned to deliver strong performance in the coming quarters.
However, one key risk that should not be ignored is its dependency on NVIDIA. Since the company provides solutions across the data centre ecosystem, its business is closely linked with NVIDIA’s offerings, which can influence future growth dynamics.
At the same time, the stock price has already seen a significant rally over the past 2–3 years and is currently trading at a relatively high valuation. The P/E ratio is around 109, which is elevated. However, if the company continues to deliver strong growth as expected, some level of valuation sustainability can be justified.