Netweb Technologies India Ltd, a rising name in the small-cap IT space, has impressed investors with a stellar performance in the fourth quarter of FY25. The company posted a net profit of ₹42.9 crore, which marks a 45% increase compared to the same quarter last year. Revenue also surged 56% year-over-year to ₹414 crore, reflecting growing demand for advanced tech solutions, especially in artificial intelligence.
A Closer Look at the Numbers
Netweb’s growth in Q4 wasn’t limited to profit and revenue. EBITDA rose by 48% to ₹59.75 crore compared to ₹40.42 crore in the year-ago period. Quarter-on-quarter, it jumped 36% from ₹43.95 crore. However, the EBITDA margin saw a slight dip to 14.4%, down from 15.17% in Q4 last year, due to increased operational costs. Still, this margin remains healthy given the company’s growth stage.
Here’s a quick snapshot of Q4 FY25 performance:
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Net Profit: ₹42.9 crore (up 45% YoY, up 42% QoQ)
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Revenue: ₹414 crore (up 56% YoY, up 24% QoQ)
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EBITDA: ₹59.75 crore
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EBITDA Margin: 14.4%
Dividend Declaration Reflects Optimism
Netweb’s board has proposed a final dividend of ₹2.5 per share for FY25. This announcement has been well-received by shareholders and underlines the company’s confidence in its financial outlook. It’s also a sign of the management’s commitment to delivering value back to investors.
AI Systems Driving Growth
A significant portion of Netweb’s success can be attributed to its AI-focused offerings. The company has seen growing interest in its AI systems, which contributed more than 11% to overall revenue in FY24—up from 7% the year before. As the only Indian manufacturing partner for Nvidia, Netweb is uniquely positioned to capitalize on the rising demand for high-performance computing in sectors ranging from enterprise to government.
Strong Order Book and Pipeline
As of the end of Q4 FY25, Netweb reported an active order book worth ₹325.2 crore and a sales pipeline exceeding ₹3,970 crore. Additionally, it holds L1 (lowest bidder) status for projects totaling ₹362.8 crore. These figures point to solid demand and future revenue potential, reinforcing the company’s foothold in the competitive IT infrastructure market.
Navigating a Challenging Market
Despite broader challenges in the tech sector—like global recession concerns and market volatility—Netweb has shown resilience. As of early 2025, its market cap stands at ₹8,067 crore, even though the stock has declined around 23% year-to-date. With a promoter stake of over 71% and a valuation at 17.6 times its book value, the company still draws attention as a long-term growth story. Management has projected annual growth of 30-35% over the next two to three years, driven by AI and IT infrastructure segments.
What Makes Netweb Worth Watching
Netweb is more than just a small-cap IT firm. Its strategic focus on next-gen technologies like AI, along with a growing presence in the server manufacturing and high-performance computing space, makes it a company to keep an eye on. It’s steadily building a niche with cutting-edge products and key partnerships, including its collaboration with Nvidia.
In Summary
Netweb Technologies has delivered a strong Q4, marked by impressive growth in revenue, profit, and EBITDA. While margins have seen a slight dip, the overall financial health remains robust. With a solid order pipeline, a growing AI portfolio, and a shareholder-friendly dividend policy, the company appears well-positioned to navigate industry headwinds and continue expanding its footprint in India’s tech landscape.
