Netweb Technologies India Ltd, a prominent player in high-end computing solutions, has reported a significant 45% year-on-year (YoY) jump in net profit to ₹429.9 million for the quarter ended March 31, 2025. This impressive growth is primarily attributed to the rapid expansion of its Artificial Intelligence (AI) systems segment and sustained demand from both government and enterprise clients.

Strong Financial Performance in Q4 FY25

The company’s operating income rose by 55.9% to ₹4.15 billion during the fourth quarter. Additionally, operating EBITDA surged 47.9% to ₹597.7 million, reflecting operational efficiency and strong sales momentum.

For the entire financial year FY25, Netweb reported a record income of ₹11.58 billion, a year-on-year growth of 57.4%, showcasing the company’s ability to scale in a rapidly evolving tech landscape.

AI Systems Segment Surges 112%

A key highlight of the year has been the exceptional performance of Netweb’s AI systems segment, which grew by 112% year-on-year in FY25. This segment now contributes 14.8% to the company’s total revenue, reflecting the rising demand for AI-enabled solutions across various industries.

To capitalize on this trend, Netweb launched Skylus.ai, a GPU-based infrastructure platform developed to simplify AI deployment and manage GPU resources efficiently. This new platform is expected to further boost the company’s position in the AI infrastructure market.

Record Full-Year Profit and EPS Growth

Netweb’s full-year net profit rose by 50.8% to ₹1.14 billion, while diluted earnings per share (EPS) climbed nearly 46% to ₹20.24. These figures underscore the company’s strong performance across all segments and improving profitability.

Chairman and Managing Director Sanjay Lodha noted that the company achieved its “highest-ever quarterly and full-year Income and PAT”, attributing the strong results to a robust order pipeline and increased AI adoption.

Dividend Announcement and Financial Health

Netweb’s board has recommended a final dividend of ₹2.5 per share, which represents a dividend payout ratio of 12.4%, subject to shareholder approval. This move reflects the company’s confidence in its cash flows and commitment to delivering value to shareholders.

Another significant highlight is that the company ended FY25 with a net debt position of negative ₹1.62 billion, indicating a net cash surplus—a strong indicator of its solid balance sheet and liquidity position.

SAP S/4 HANA Implementation and PLI Scheme Benefit

Netweb also successfully implemented SAP S/4 HANA, an advanced enterprise resource planning system, to enhance operational oversight and transparency. This move is aimed at streamlining internal processes and driving better decision-making capabilities across departments.

Additionally, the company received its first claim of ₹59.4 million under the Indian government’s PLI Scheme 2.0 for IT hardware, reflecting the government’s recognition of Netweb’s contribution to domestic manufacturing and innovation in high-tech solutions.

Healthy Order Book and Growing Market Footprint

As of the end of FY25, Netweb boasts an order book worth ₹3.25 billion, indicating sustained business momentum and strong client acquisition. This order book includes deals across sectors such as defence, research institutions, BFSI, and government initiatives in digital infrastructure.

Netweb’s manufacturing unit in Delhi-NCR and 18 offices across India have played a pivotal role in supporting its expansion and customer reach.

Background and Market Presence

Netweb Technologies was listed on NSE and BSE in July 2023. The company is known for designing and manufacturing high-performance computing (HPC), private cloud infrastructure, and AI systems.

It serves a diverse client base and is increasingly becoming a go-to name for AI-driven solutions, especially amid the global surge in demand for AI and machine learning-based systems.

Outlook: Riding the AI Wave

The company’s aggressive push into AI systems, introduction of Skylus.ai, and strong order inflows suggest a promising growth trajectory. With AI becoming a transformative force across sectors such as healthcare, defence, finance, education, and research, Netweb stands well-positioned to capitalize on the rising demand.

The government’s push for Make in India, along with PLI benefits, further enhances Netweb’s competitiveness against global players.

In summary, Netweb Technologies’ Q4 FY25 performance reaffirms its leadership in high-performance and AI computing solutions, and sets the tone for sustained future growth backed by innovation, financial prudence, and expanding market reach.

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