Netweb Technologies wins big under India’s IT Hardware PLI Scheme 2.0—Is this the future of high-performance tech manufacturing?

Netweb Technologies India Limited, one of India’s fastest-growing high-end computing companies, has been awarded a ₹5.94 crore incentive under the Government of India’s Production Linked Incentive (PLI) Scheme 2.0 for IT Hardware. The incentive, granted for the performance period from July 1, 2023, to March 31, 2024, reinforces Netweb’s role in advancing the country’s self-reliance in IT hardware manufacturing and aligns seamlessly with the central government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.

Founded in 1999 and based in Delhi NCR, Netweb Technologies has grown into a formidable player in the high-performance computing (HPC) domain, offering a broad range of enterprise-grade technology solutions. The company’s offerings span HPC clusters, AI-integrated computing platforms, hyper-converged infrastructure (HCI), private cloud, enterprise workstations, and data center servers. The firm operates a fully integrated manufacturing facility, featuring in-house design capabilities and surface mount technology (SMT) lines—enabling it to build world-class computing systems domestically.

This recognition under the IT Hardware PLI Scheme marks a major milestone for Netweb Technologies and signals the government’s endorsement of its capability to contribute meaningfully to India’s ambitions of becoming a global hardware manufacturing hub.

What is the purpose of India’s IT Hardware PLI Scheme 2.0?

The PLI Scheme 2.0 for IT Hardware, administered by the Ministry of Electronics and Information Technology (MeitY), is intended to incentivize companies that invest in domestic hardware production while meeting performance-based thresholds. It covers categories such as laptops, tablets, servers, edge devices, and all-in-one PCs—hardware segments that are vital to India’s technological independence and digital infrastructure.

The scheme’s second phase introduced more refined targets for value addition and aims to strengthen India’s supply chain ecosystem for IT products. For eligible firms, including Netweb Technologies, the scheme acts as a dual lever: providing direct financial incentives for production and positioning recipients as trusted partners in India’s evolving technology ecosystem.

Netweb’s receipt of ₹5,93,97,758 validates the company’s manufacturing excellence, its role in building locally designed and integrated systems, and its capacity to meet or exceed the government’s strategic performance benchmarks under the scheme.

What makes Netweb Technologies integral to India’s self-reliance in tech?

Netweb Technologies has consistently showcased its capability to design, develop, and deploy advanced computing systems within India. Its fully integrated model allows it to manage the product lifecycle end to end, from ideation to production. This vertical integration is critical in the IT hardware sector, where design ownership and supply chain control significantly impact competitiveness.

By focusing on enterprise clients and government projects, Netweb has carved out a niche in the delivery of custom, scalable systems, including AI-driven solutions and storage-heavy platforms used in sectors like healthcare, BFSI, academia, defense, and scientific research. The company’s design-centric approach also means it is not simply assembling systems but contributing intellectual property and architecture innovations to the broader technology ecosystem.

With its manufacturing hub located in Delhi NCR and a pan-India footprint through 18 branch offices, Netweb is positioned to respond quickly to national and regional requirements for high-performance computing and data infrastructure.

How has Netweb Technologies performed in the stock market?

Netweb Technologies India Limited, listed on both the National Stock Exchange (NSE: NETWEB) and Bombay Stock Exchange (BSE) since July 2023, has seen fluctuating investor sentiment in recent months. On April 3, 2025—the day of the PLI incentive announcement—the company’s stock closed at ₹1,529.65, marking a 1.28% decline from its previous close of ₹1,549.40. This places the share roughly 50% below its 52-week high of ₹3,060.00 but still approximately 17% above its 52-week low of ₹1,305.05.

The volatility suggests mixed investor sentiment despite the positive developments in operations and government support. Financial results for the quarter ending December 2024 showed a net profit of ₹30.32 crore, a 16.57% year-over-year increase, indicating strong bottom-line growth. However, with a trailing twelve-month earnings per share (EPS) of ₹17.85 and a price-to-earnings (P/E) ratio of nearly 85.69, the stock appears richly valued compared to the sector average P/E of 18.01.

Analysts tracking the company have mostly issued a ‘Strong Buy’ recommendation based on fundamentals and growth potential. However, mutual fund holdings in the company decreased slightly—from 5.22% in September 2024 to 4.95% in December 2024—possibly reflecting a cautious stance from institutional investors amid valuation concerns.

Given its high P/E ratio, robust financial growth, and government support, a ‘Hold’ recommendation appears reasonable for existing investors, especially while the market recalibrates the stock’s valuation. Prospective investors may want to wait for more attractive entry points unless long-term exposure to India’s domestic computing hardware play is a strategic priority.

How does the PLI incentive shape Netweb’s future growth trajectory?

This ₹5.94 crore PLI incentive is not just a monetary reward—it serves as strategic validation of Netweb’s manufacturing roadmap and innovation-driven operations. The company’s future expansion is likely to be shaped by increased investment in R&D, automation, and capacity enhancement, especially in the context of global trends in AI infrastructure and cloud-native systems.

Netweb Technologies has indicated its intent to lead in top-bin technology platforms, suggesting continued investments in developing cutting-edge computing systems with high scalability and energy efficiency. These goals align with India’s increasing demand for indigenous data centers, sovereign cloud initiatives, and AI model training facilities.

Moreover, with semiconductors and electronics forming core components of the government’s technology strategy, Netweb is well-placed to benefit from future policy alignments, including the India Semiconductor Mission and additional export incentives for IT and electronics.

Chairman and Managing Director Sanjay Lodha described the incentive as a reflection of the company’s unwavering commitment to quality manufacturing and national priorities. He emphasized that Netweb will continue supporting the Make in India mission while contributing to employment generation and global competitiveness in the tech space.

Netweb’s recent PLI reward highlights its growing stature in India’s electronics ecosystem and validates the government’s trust in its strategic capabilities. As the company continues to scale, it is not just manufacturing IT systems—it is helping architect India’s digital backbone for the next decade.