27-Oct-2026 08:44:10
NETWEB TECHNOLOGIES Q2 CONCALL : REVENUE SURGES 336% YOY, AI BUSINESS UP 1,068% & MANAGEMENT TARGETS ₹4,000 CR FY27 REVENUE
• MANAGEMENT REITERATES FY27 REVENUE TARGET OF ₹4,000 CR, WITH H1 REVENUE ALREADY REACHING ₹2,143 CR • MANAGEMENT EXPECTS ANNUAL REVENUE GROWTH OF APPROXIMATELY 30–40% OVER THE NEXT 2–3 YEARS, SUPPORTED BY STRONG AI INFRASTRUCTURE DEMAND • MANAGEMENT MAINTAINS MEDIUM-TERM EBITDA MARGIN FRAMEWORK OF 13–14%, COMPARED WITH CURRENT Q2 MARGIN OF 14.9% • Q2 REVENUE SURGED 335.7% YOY & 61.4% QOQ TO ₹1,323 CR, DRIVEN BY STRONG AI SYSTEMS DEMAND • Q2 OPERATING EBITDA UP 334% YOY & 63.7% QOQ TO ₹197 CR, WHILE NET PROFIT INCREASED APPROXIMATELY 335% YOY TO ₹137 CR • H1 REVENUE UP 254.2% YOY TO ₹2,143 CR, WHILE EBITDA INCREASED 257.7% TO ₹323 CR • H1 NET PROFIT SURGED 258.5% YOY TO ₹222 CR, EXCEEDING THE ENTIRE FY26 NET PROFIT OF ₹206 CR • AI SYSTEMS REVENUE JUMPED 1,068% YOY TO ₹773 CR, CONTRIBUTING 58.4% OF TOTAL Q2 REVENUE • COMPANY REPORTED ₹248 CR REVENUE FROM HIGH-PERFORMANCE COMPUTING & ₹245 CR FROM PRIVATE CLOUD DURING Q2 • CONFIRMED ORDER BOOK STANDS AT ₹2,629 CR, WITH ADDITIONAL L1 OPPORTUNITIES OF ₹653 CR AWAITING FINAL ORDER CONVERSION • MANAGEMENT REPORTED AN ACTIVE OPPORTUNITY PIPELINE OF ₹11,152 CR, WITH HISTORICAL CONVERSION OF APPROXIMATELY 60%; THE PIPELINE IS NOT A CONFIRMED ORDER BOOK • MANAGEMENT TARGETS NVIDIA VERA RUBIN SYSTEM AVAILABILITY BY JANUARY 2027, WHILE A NEW TAIWAN R&D SUBSIDIARY WILL SUPPORT HARDWARE DESIGN & PRODUCT DEVELOPMENT • MANAGEMENT EXPECTS NATIONAL SUPERCOMPUTING MISSION 2.0 OPPORTUNITIES TO BEGIN AROUND EARLY 2027, SUPPORTING LONG-TERM DOMESTIC COMPUTING DEMAND • COMPANY REPORTED A 94-DAY CASH CONVERSION CYCLE, 117 INVENTORY DAYS & A NET CASH POSITION OF APPROXIMATELY ₹14 CR • MANAGEMENT REMAINS CONFIDENT ABOUT AI INFRASTRUCTURE GROWTH, BUT HIGH INVENTORY, LARGE CUSTOMER ORDERS, COMPONENT COST INFLATION & ₹11,152 CR PIPELINE CONVERSION REMAIN KEY RISKS
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