Netweb Technologies India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Netweb Technologies India Ltd filed with BSE on 07 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Netweb Technologies reported Q4 FY26 revenue of INR7,737 million, up 86.6% year-on-year, and full-year FY26 revenue of INR21,836 million, up 90% year-on-year. The AI systems segment grew 459.6% year-on-year and contributed 43.4% of total operating revenue for the year, while PAT for the year rose 80.9% to INR2,058 million. Management said the company entered FY27 with a firm order book of around INR2,100 crores plus L1 orders taking it to INR2,400 crores, and guided to 35-40% revenue growth with EBITDA margins of 13-14% over the next couple of years.
Numbers mentioned
Revenue from operations: INR21,836 million (FY26)
p. 3
“We are pleased to announce that Netweb Technologies delivered a landmark year with the revenue from operations reaching INR21,836 million in financial year '26, reflecting a strong year-on-year growth of 90%.”
Sanjay Lodha, page 3 of the filed PDF · View the filing
Revenue from operations: INR7,737 million (Q4 FY26)
p. 3
“For Q4 financial year '26, revenue from operations stood at INR7,737 million, growing at 86.6% year-on-year, demonstrating strong execution momentum as we closed the year on a high note.”
Sanjay Lodha, page 3 of the filed PDF · View the filing
PAT: INR706 million (Q4 FY26)
p. 3
“PAT for the quarter stood at INR706 million, representing 65.7% year-on-year growth with a PAT margin of 9%.”
Sanjay Lodha, page 3 of the filed PDF · View the filing
PAT: INR2,058 million (FY26)
p. 3
“For the full year, PAT stood at INR2,058 million, up by 80.9% year-on-year with a PAT margin of 9.3%.”
Sanjay Lodha, page 3 of the filed PDF · View the filing
AI segment growth: 459.6% year-on-year (FY26)
p. 3
“The defining highlight of financial year '26 has been the performance of our AI segment, which grew by 459.6% year-on-year.”
Sanjay Lodha, page 3 of the filed PDF · View the filing
AI systems share of revenue: 43.4% (FY26)
p. 3
“AI systems contributed 43.4% of our total operating revenue in financial year '26, a transformational shift from a revenue mix that firmly positions our Netweb's”
Sanjay Lodha, page 3 of the filed PDF · View the filing
Order book: around INR2,100 crores
p. 4
“As we step into financial year '27 from a position of strength with a firm order book of around INR2,100 crores and an L1 inclusive order book of INR2,400 crores, day one of financial year '27, we already have on our books more than what we had billed for all of last year.”
Sanjay Lodha, page 4 of the filed PDF · View the filing
Adjusted operating EBITDA: INR1,018 million (Q4 FY26)
p. 4
“Our adjusted operating EBITDA for Q4 FY '26 stood at INR1,018 million, showcasing a growth of 71.8% Y-o-Y.”
Ankit Kumar Singhal, page 4 of the filed PDF · View the filing
Operating EBITDA: INR966 million (Q4 FY26)
p. 5
“Our operating EBITDA for Q4 FY '26 stood at INR966 million, showcasing a growth of 63% Y-o-Y.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Adjusted operating EBITDA: INR2,901 million (FY26)
p. 5
“Adjusted operating EBITDA for FY '26 stood at INR2,901 million, showcasing a growth of 82.4% Y-o-Y.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Operating EBITDA: INR2,848 million (FY26)
p. 5
“Operating EBITDA for the full year FY '26 stood at INR2,848 million, showcasing a growth of 79.1% Y-o-Y.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Return on equity: 32.9% (FY26)
p. 5
“Return on equity stood at a healthy 32.9%, while return on capital employed for the same period was 37.5%.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Gross fixed asset turnover ratio: 33.2x (as on 31st March 2026)
p. 5
“The gross fixed asset turnover ratio stood at 33.2x as on 31st March 2026.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Cash conversion cycle: 84 days (as at March 2026)
p. 5
“Our cash conversion cycle as at March 2026 stood at 84 days.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Receivable days: 86 days (March 2026)
p. 5
“Receivable days improved from 114 days in December 2025 to 86 days in March 2026, reflecting stronger collections.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Inventory days: 86 days (March 2026)
p. 5
“Inventory days increased from 60 days in December 2025 to 86 days in March 2026, primarily on account of buildup of raw material stock both to support the execution of large strategic orders”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Net free cash: INR833 million (as on 31st March 2026)
p. 5
“The company had net free cash of INR833 million as on 31st March 2026.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Net cash from operating activities: INR1,715 million (FY26)
p. 5
“The net cash generated from operating activities was INR1,715 million for the financial year 2026.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Dividend: INR3 per share (FY26)
p. 5
“The Board has recommended a dividend of INR3 per share, subject to shareholders' approval.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Strategic order component of order book: INR1,600 crores
p. 19
“In presentation I mentioned very clearly, INR1,600 crores is the strategic order INR472 crores is the organic order and INR327 crores is my L1.”
Sanjay Lodha, page 19 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Revenue growth — 35% to 40% · next couple of years
stated firmly by Ankit Kumar Singhal
p. 5
“Looking ahead, we remain confident of sustaining strong momentum and are guiding a growth -- revenue growth of 35% to 40% over the next couple of years.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Operating EBITDA margin — 13% to 14% · next couple of years
stated firmly by Ankit Kumar Singhal
p. 7
“So in this way, all -- if you see with this growth, the leverage is already embedded in the margins. So that's why we are guiding this 13% to 14% range for the next couple of years.”
Ankit Kumar Singhal, page 7 of the filed PDF · View the filing
Capex — no significant expansion, routine capex only · FY27
stated firmly by Ankit Kumar Singhal
p. 7
“So, with the current capex, we are able to sustain the growth. There is no capex expansion. No significant capex is expected in this financial year '27.”
Ankit Kumar Singhal, page 7 of the filed PDF · View the filing
Cash conversion cycle — 90 to 110 days · FY27
stated conditionally by Ankit Kumar Singhal
p. 8
“So -- Seema, so our cash conversion cycle typically operates from 90 to 110 days. Now this is something which cannot be projected for next year at least, but we would like to say that the range will remain like that.”
Ankit Kumar Singhal, page 8 of the filed PDF · View the filing
Strategic order execution — next 3 quarters
stated firmly by Sanjay Lodha
p. 8
“And we expect that -- within the next 3 quarters, I think we expect it to be done, okay, as regards to the strategic order is concerned.”
Sanjay Lodha, page 8 of the filed PDF · View the filing
AI segment share of business — around 35%
stated as an aspiration by Sanjay Lodha
p. 16
“I can tell you that AI will remain around 35% of my business. Balance will be shared equally between the HPC and Private Cloud.”
Sanjay Lodha, page 16 of the filed PDF · View the filing
Export share of revenue — around 5%
stated firmly by Sanjay Lodha
p. 14
“So, it will remain around the 5%, which we have been currently doing. It will remain around that only.”
Sanjay Lodha, page 14 of the filed PDF · View the filing
Pipeline conversion — 60% · 18 to 24 months
stated conditionally by Sanjeev Sancheti
p. 17
“Generally, the conversion is about 60%, but this will fuel about 1.5 to 2 years of -- yes, 18 to 24 months.”
Sanjeev Sancheti, page 17 of the filed PDF · View the filing
Promoter stake sale dilution — no further dilution for 12 months · 12 months from February
stated firmly by Sanjeev Sancheti
p. 10
“We are not going to dilute, this stake sale was done in the month of February. We are not going to dilute 12 months from there.”
Sanjeev Sancheti, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said margins should be viewed adjusted for forex loss/gain and that performance was actually better than the prior quarter and within guidance.
Answered by Sanjeev Sancheti
Asked by Renu Baid: Why did EBITDA margins not expand despite higher organic revenue this quarter?
p. 6
“As far as the margins are concerned, I think you need to see the margin adjusted of the forex loss and gain.”
Sanjeev Sancheti, page 6 of the filed PDF · View the filing
Management guided 13-14% operating EBITDA margin and 35-40% revenue growth for the next couple of years, with no significant capex expansion planned.
Answered by Ankit Kumar Singhal
Asked by Renu Baid: What is the headline guidance for FY27 on revenue, EBITDA margin and capex?
p. 7
“Yes. So -- Renu, so on the operating EBITDA margins, we are guiding 13% to 14%.”
Ankit Kumar Singhal, page 7 of the filed PDF · View the filing
Management explained the segment's percentage share fell only because AI grew much faster, not because Private Cloud itself de-grew, and that it continues to grow at good momentum.
Answered by Sanjay Lodha
Asked by Seema Nayak: Why has data center (Private Cloud) growth appeared to slow, and is there increased competition?
p. 8
“But basically, since AI is growing much faster actually. Actually, the data center in our case is the Private Cloud and HCI.”
Sanjay Lodha, page 8 of the filed PDF · View the filing
Management said the cash conversion cycle typically operates in a 90-110 day range and expects to stay within it despite some inventory build.
Answered by Ankit Kumar Singhal
Asked by Seema Nayak: What is the target cash conversion cycle for FY27?
p. 8
“So -- but we will stay within the range of 90 to 110. That's what we feel.”
Ankit Kumar Singhal, page 8 of the filed PDF · View the filing
Management said India is not currently a hyperscaler-driven market and the company is not targeting hyperscalers at this point, though it would consider working with them if interested.
Answered by Sanjay Lodha
Asked by Harinder Singh: Is Netweb targeting hyperscalers directly as they build large capacity in India?
p. 9
“At this point of time, we are not targeting hyperscalers, and I don't feel India is a hyperscaler market.”
Sanjay Lodha, page 9 of the filed PDF · View the filing
Management said the sale was to increase stock liquidity and confirmed no further dilution for 12 months.
Answered by Sanjeev Sancheti
Asked by Akshay: What was the reason for the promoter stake sale and is further dilution expected?
p. 10
“As stake sale, of course, it was done because there was some -- there was a liquidity -- there was limited liquidity. So, by this stake sale, we have been able to increase the liquidity of the stock.”
Sanjeev Sancheti, page 10 of the filed PDF · View the filing
Management said the facility enables manufacturing of new architecture systems including liquid cooled systems and higher rack density.
Answered by Hirdey Vikram
Asked by Akshay: What is the purpose and capacity impact of the new 15,000 sq ft manufacturing facility?
p. 11
“And now we'll be able to scale even beyond 150 kilowatt per rack kind of an architecture.”
Hirdey Vikram, page 11 of the filed PDF · View the filing
Management said HPC is growing well on its own (around 31%) but does not expect the Agentic AI/Intel development to create a major HPC market impact in India this year.
Answered by Sanjay Lodha
Asked by Chi Ho Wong: Will Agentic AI trends accelerate HPC segment revenue this year?
p. 11
“Basically, you are seeing HPC basically growth around -- it has grown by around 31%, which is not less actually, but you're seeing the number low because the AI has grown too much.”
Sanjay Lodha, page 11 of the filed PDF · View the filing
Management clarified the guidance is on an overall enterprise basis, representing the best case, given the strong order book position.
Answered by Sanjay Lodha
Asked by Sandeep Shah: Does the 35-40% growth and 13-14% margin guidance include the strategic AI mission order?
p. 13
“Because we are entering the year with INR2,400 crores already as an order book, okay, including the L1.”
Sanjay Lodha, page 13 of the filed PDF · View the filing
Management said exports will remain around 5% as domestic AI demand is unabated and takes priority.
Answered by Sanjay Lodha
Asked by Sandeep Shah: What is the progress and share of export sales?
p. 14
“So, it will remain around the 5%, which we have been currently doing.”
Sanjay Lodha, page 14 of the filed PDF · View the filing
Management said unabated AI demand is putting pressure on components and supply chain, but proactive inventory planning limits the impact and price increases can be passed on.
Answered by Sanjay Lodha
Asked by Vinay Menon: Is component pricing showing softness or expected to remain elevated?
p. 14
“So, if it will remain unabated, definitely, there will be pressure on the component prices and component supply chain.”
Sanjay Lodha, page 14 of the filed PDF · View the filing
Management clarified the guidance figure is for normal organic orders only, not inclusive of the strategic order.
Answered by Sanjeev Sancheti
Asked by Vinay Menon: Does the 35-40% guidance include the AI mission strategic deal?
p. 15
“So, the guidance on the top line is not inclusive of the strategic order. It is the normal organic order, which is about 35%.”
Sanjeev Sancheti, page 15 of the filed PDF · View the filing
Management said the increase was short-term borrowing to fund working capital for strategic and regular orders, expected to settle quickly.
Answered by Ankit Kumar Singhal
Asked by Pooja Seth: What caused the roughly INR270 crore increase in net borrowings?
p. 16
“Borrowings are largely to fund the strategic orders. We had been -- these are very short-term borrowings.”
Ankit Kumar Singhal, page 16 of the filed PDF · View the filing
Management clarified the actual cycle was 84 days, not over 100, driven by inventory build for large orders, and reiterated the 90-110 day standard guidance.
Answered by Ankit Kumar Singhal
Asked by Mansimer Singh Sethi: Why is the cash conversion cycle elevated and is it sustainable given rising ROE/ROCE?
p. 16
“So yes, correctly mentioned by Sanjeev sir. So, it's not 100, it's around 84.”
Ankit Kumar Singhal, page 16 of the filed PDF · View the filing
Management said pipeline conversion is generally around 60% but occurs over 18-24 months, not entirely within one year.
Answered by Sanjeev Sancheti
Asked by Mansimer Singh Sethi: What percentage of the pipeline can be converted this financial year?
p. 17
“Generally, the conversion is about 60%, but this will fuel about 1.5 to 2 years of -- yes, 18 to 24 months.”
Sanjeev Sancheti, page 17 of the filed PDF · View the filing
Management explained borrowing covenants and RBI guidelines require maintaining WCDLs for a certain period, so cash cannot be used to settle them immediately.
Answered by Ankit Kumar Singhal
Asked by Vatsal Aggarwal: Why did short-term borrowings increase despite a strong cash position?
p. 17
“So, there are RBI guidelines where the WCDLs are supposed to be maintained for a certain period of time.”
Ankit Kumar Singhal, page 17 of the filed PDF · View the filing
Management said the organic order cycle is typically 10-20 weeks for shipping, while strategic orders are expected to be executed over the next 3 quarters.
Answered by Sanjay Lodha
Asked by Prajay: What is the revenue visibility timeline for the current order book?
p. 18
“Normally, our order cycle is somewhere around 10 to 20 weeks, we normally ship out, okay?”
Sanjay Lodha, page 18 of the filed PDF · View the filing
Risks flagged
AI demand is putting pressure on component prices and supply chain
p. 14
“So that is definitely putting pressure on the components actually, really speaking.”
Sanjay Lodha, page 14 of the filed PDF · View the filing
Strategic orders slipped into a later quarter than originally planned
p. 6
“So Renu, just a couple of things. One that it is not that the strategic orders have been lagging behind. It's just that they spilled over to the next quarter, okay?”
Sanjeev Sancheti, page 6 of the filed PDF · View the filing
Increase in inventory days due to raw material stock buildup for large strategic orders
p. 5
“Inventory days increased from 60 days in December 2025 to 86 days in March 2026, primarily on account of buildup of raw material stock both to support the execution of large strategic orders and to secure adequate inventory of key inputs in light of surging global demand of AI compute infrastructure.”
Ankit Kumar Singhal, page 5 of the filed PDF · View the filing
Increase in short-term borrowings tied to working capital needs of large orders
p. 16
“These are no long-term borrowings, and these are primarily to execute the working capital required for any large strategic orders”
Ankit Kumar Singhal, page 16 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.