Netweb Technologies shares zoom over 18% after Q4 net profit jumps 45% YoY on AI-led growth

Synopsis

Netweb Technologies' shares surged following a robust Q4 and full-year performance, marked by a 45% rise in net profit to Rs 43 crore for Q4 2025. Revenue soared 57.4% to Rs 1,158 crore for the full year, driven by strong AI systems growth and government demand. The company also announced a dividend and positive developments in operational enhancements.

Netweb Technologies shares jumped over 18% to Rs 1,681.4 in Monday’s intraday trade on the BSE after the company reported a 45% year-on-year rise in net profit to Rs 43 crore for the quarter ended March 31, 2025. The growth was mainly driven by strong performance in its AI systems segment and robust demand from government and enterprise clients.

Operating income for the fourth quarter rose 55.9% to Rs 415 crore, while operating EBITDA increased 47.9% to Rs 59.77 crore. For the full year, revenue surged 57.4% to a record Rs 1,158 crore.

Net profit for the full year rose 50.8% to Rs 114 crore, while diluted earnings per share increased nearly 46% to Rs 20.24.

Also Read: 8 Nifty Microcap stocks that can jump 100-230% in the next 12 months

The AI systems segment posted 112% year-on-year growth in FY25, contributing 14.8% to total revenue, highlighting rising demand for artificial intelligence applications. The company launched Skylus.ai during the year—a GPU-based infrastructure platform aimed at streamlining AI deployment and GPU resource management.

Chairman and Managing Director Sanjay Lodha said the company achieved its “highest-ever quarterly and full-year Income and PAT,” attributing the growth to a strong order pipeline and increased adoption of AI systems.

The board has recommended a final dividend of Rs 2.5 per share, translating to a dividend payout ratio of 12.4%, subject to shareholder approval.

Also Read: 5 timeless Warren Buffett quotes every investor should know

The company also said it successfully implemented SAP S/4 HANA for enhanced operational oversight and received its first claim of Rs 5.94 crore under the Indian government's PLI Scheme 2.0 for IT hardware.

Netweb ended FY25 with a net debt position of negative Rs 162 crore and an order book of Rs 325 crore.

Netweb Technologies shares price target

As per Trendlyne data, the average target price of the stock is Rs 2,560, which shows an upside of 57% from the current market prices. The consensus recommendation from 3 analysts for the stock is a 'Strong Buy'.

Netweb Technologies shares price performance

Netweb Technologies shares are down 44% year-to-date and 39% over the past six months. The company’s market capitalisation is Rs 9,220 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

...moreless

...moreless