Netweb Technologies posts record growth in Q2 FY25, PAT doubles year-on-year

Netweb Technologies India Limited (Netweb), India’s leading high-end computing solutions provider, announced its unaudited financial results for the second quarter of FY25, showcasing a significant rise in both revenue and profitability. The results, approved by the company’s Board of Directors, highlight a 71% year-on-year (YoY) increase in total income, which reached ₹ 2,531 million, and a 69.8% YoY surge in profit after tax (PAT) to ₹ 257 million.

The company attributed its robust growth to a strong focus on artificial intelligence (AI) solutions, strategic expansion in overseas markets, and its core pillars of high-performance computing (HPC), private cloud, and AI systems. Netweb’s order book grew from ₹ 2,174 million in September 2023 to ₹ 3,697 million by September 2024, indicating sustained demand across sectors including IT, BFSI, government, and defence.

Exceptional Financial Performance and Strategic Focus

Netweb’s results for Q2 FY25 also saw an EBITDA of ₹ 378 million, up by 69.7% from the previous year. Despite the rapid growth, EBITDA margins slightly declined from 15% in Q2 FY24 to 14.9% in Q2 FY25, reflecting increased investments in R&D and manufacturing capabilities. For the first half of FY25 (H1 FY25), PAT rose 103.4% YoY to ₹ 412 million.

Netweb’s growth story is underpinned by India’s booming AI research ecosystem, which has been bolstered by government initiatives and corporate partnerships. The company emphasized that AI systems were the fastest-growing segment, recording a 229% YoY growth and contributing to nearly 15% of its operating revenue for the September quarter. The expansion into international markets, with a focus on innovation, further supports Netweb’s strategy to solidify its leadership position.

Strong Order Book and Expansion into International Markets

Netweb also highlighted that its business pipeline remains robust, with significant gains in the overseas market. The company has begun receiving export orders, which aligns well with its growth plans. Commenting on the financial results, Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, expressed satisfaction over the progress: “Total income increased by 71% YoY for Q2 FY25, showcasing our strong operational capabilities and focus on customer-centric solutions. We are confident that our strategic expansion and investment in high-growth areas like AI will continue to drive strong returns.”

Lodha further noted that the AI business segment is gaining substantial traction, fueled by rapid growth across industries that rely on advanced computing power for research and development. The company’s commitment to continuous improvement in its capabilities and product offerings remains central to its long-term growth strategy.

A Leader in High-End Computing Solutions

Founded in 1999, Netweb Technologies specializes in providing high-end computing solutions, including HPC, private cloud, hyper-converged infrastructure (HCI), AI systems, and high-performance storage. The company, which listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in July 2023, continues to invest heavily in manufacturing facilities and R&D to maintain its competitive edge.

Looking ahead, Netweb aims to capitalize on the evolving needs of industries such as IT, BFSI, defence, and education by providing end-to-end computing solutions. With a manufacturing facility located in Delhi-NCR and 18 offices across India, the company is well-positioned to meet growing domestic and international demand.