Shares of Netweb Technologies India Ltd. are trading 6% lower on Monday, May 4, despite the company reporting strong revenue growth for the March quarter. According to reports from CNBC TV18, the market reaction reflects investor concerns about margin pressures that offset the company's robust topline expansion. The stock has been under pressure throughout the day, with latest updates showing continued decline as investors focus on profitability concerns over revenue growth.
For Q4, revenue rose 86.6% YoY to ₹773.7 crore, while adjusted EBITDA increased 71.8% to ₹101.8 crore. As reported by CNBC TV18, net profit grew 65.7% YoY to ₹70.5 crore, though margins contracted to 13.2% from 14.3% a year ago. On a sequential basis, revenue declined 3.9%, while adjusted EBITDA rose 4%, leading to margin improvement to 13.2% from 12.2%. The company continues to deliver robust topline expansion, which was supported by a healthy order pipeline that provides strong revenue visibility.
AI systems emerged as a key growth driver, with revenue from this segment surging 460% YoY and contributing 43% to overall revenue. According to CNBC TV18, in contrast, the data centre segment saw a 14% decline in FY26. For FY26, revenue nearly doubled, rising 90% YoY to ₹2,183 crore, while adjusted EBITDA grew 82.4% to ₹290 crore. Management reports that AI segment contribution has increased to 43% from 15% previously, with the segment experiencing robust demand and strong growth momentum.
The company's order pipeline stood at ₹4,431.5 crore as of March 31, 2026, with an L1 pipeline of ₹327.8 crore. As reported by CNBC TV18, the organic order book was ₹472 crore, while large deal orders accounted for ₹1,625.2 crore. Government clients contributed 42.8% of revenue, while non-government customers accounted for 57.2%. Speaking to CNBC TV18, management expects revenue growth of 30-35% in FY27, factoring in a high base. The company is de-risking by sourcing materials more efficiently and expects to continue operations despite current market challenges.
Inventory days have increased due to challenges around memory and chip availability, and are expected to remain elevated at around 80 days. According to CNBC TV18, the company will continue to announce strategic orders as and when they are secured, despite the current margin pressures that have impacted investor sentiment despite strong revenue growth. Memory prices have increased, but the company has been able to manage the impact effectively through operational strategies.
