BUY

CMP: INR 3,201 Target Price: INR 4,110  28% ICICI Securities Limited is the author and distributor of this report

15 December 2025 India | Equity Research | Initiating Coverage

Netweb Technologies India

Technology

A unique and comprehensive play in HCS

Netweb is India’s leading high-end computing solutions (HCS) provider. Its offerings span: 1) HPC; 2) private cloud and HCI;
3) AI systems; 4) data centres; 5) HPS; and 6) software and services for HCS. HPC, private cloud and AI systems are its high-
growth segments with 77% FY22–25 CAGR. It is present in both hardware and software segments and offers hardware
design, manufacturing and software capabilities, with a sole-mover advantage. Sectoral tailwinds include: 1) high domestic
computing and data centre demand; and 2) government support from IndiaAI and National Supercomputing Mission.
Netweb’s USP lies in: 1) it being India’s only full-stack hardware provider, fortified by its design offerings, implementation and
software stack; 2) its marquee clients with strong support from government programmes; and 3) its strong partnerships with
OEMs like NVIDIA, AMD and Intel, aiding robust offerings.
We model FY25–28E revenue/PAT CAGRs of 59%/58% and ascribe a 56x target
Seema Nayak
multiple (in line with Dixon Technologies’ lifetime average P/E) on Dec’27E-ending [Link]@[Link]
EPS of INR 73. Our TP stands at INR 4,110. We bake in an INR 21.8bn fillip from +91 22 6807 7135
the IndiaAI Mission order and factor in FY26–28E ex-strategic orders’ revenue Ruchi Mukhija
CAGR of ~38%. We initiate coverage with a BUY rating. Key risk: Business’ non- [Link]@[Link]
annuity nature.

Superlative growth in top three segments

Netweb’s portfolio consists of eight segments, of which: 1) HPC (High Performance
Computing); 2) HCI (Hyper-Converged Infrastructure); 3) AI systems and
workstations are the three key high-growth segments that the company is
focusing on in the short–medium term. The FY22-25 CAGR of the combined Market Data
revenue of these 3 segments was 77%, up from 45% during FY20-23. Together, Market Cap (INR) 181bn
these three segments formed 89% of its Q2FY26 revenue, up from 71% in Q1FY23. Market Cap (USD) 2,005mn
Other segments, such as colocation data centres, are not the company’s focus, as Bloomberg Code NETWEB IN
Reuters Code [Link]
maintaining differentiated offerings based on R&D is key for Netweb.
52-week Range (INR) 4,480 /1,252
OEM partnerships with chip makers Free Float (%) 29.0
ADTV-3M (mn) (USD) 109.6
Netweb has partnerships with NVIDIA, AMD and Intel. Netweb is NVIDIA’s only
OEM partner in India. Being NVIDIA’s OEM partner, Netweb gets early access to
its latest chips and architectures. Its strategic collaborations with technology
Price Performance (%) 3m 6m 12m
partners – Intel, AMD, and NVIDIA – allow continuous updates. This enhances
Netweb’s product and service offerings, as it gets early product pipeline access of Absolute 10.2 77.2 12.9
Relative to Sensex 6.1 72.8 8.1
latest chips – 12–24 months ahead; accordingly, designs servers and AI systems.

Financial Summary ESG Score 2024 2025 Change

Y/E March (INR mn) FY25A FY26E FY27E FY28E ESG score NA NA NA
Environment NA NA NA
Net Revenue 11,490 23,498 44,729 45,839
Social NA NA NA
EBITDA 1,600 3,091 5,859 6,387 Governance NA NA NA
EBITDA Margin (%) 13.9 13.2 13.1 13.9 Note - Score ranges from 0 - 100 with a higher
Net Profit 1,145 2,115 4,042 4,515 score indicating higher ESG disclosures.
EPS (INR) 20.2 37.3 71.4 79.7 Source: SES ESG, I-sec research
EPS % Chg YoY 50.0 84.7 91.2 11.7
P/E (x) 158.4 85.8 44.9 40.2
EV/EBITDA (x) 112.1 58.0 30.5 27.4
RoCE (%) 23.1 25.1 30.3 30.2
RoE (%) 24.0 33.9 45.2 35.5

Please refer to important disclosures at the end of this report

Netweb Technologies India | Initiating Coverage | 15 December 2025

Push from Government of India

Netweb derives 43% revenue share from the Government of India (GoI), as GoI plans
to position India as an emerging leader in AI hardware, in line with the country’s
position as a software leader, given its promise of high employment generation. GoI
has launched several high-budget programmes like IndiaAI Mission and National
Supercomputing Mission – outlays of INR 103bn and INR 45bn, respectively, that are
potential direct tailwinds for Netweb. Alongside, favourable policies like DPDP Act and
PLI Scheme for IT hardware players, have made the business environment more
conducive for a player like Netweb.

Steady performance; outperforming its guidance

Netweb has delivered steady revenue growth and margin performance over FY23–25,
with ~60%+ revenue CAGR; thus, outperforming its guidance of 35–40% (ex-strategic
orders growth). Netweb has maintained its EBITDA margin in the range of 13–14%
over the last four years and has been able to sustain its PAT margin at 9–10%. It aims
to grow at 35–40% in the medium term, with a PAT margin of 9–10%. We factor in a,
ex-strategic orders, FY26–28E revenue CAGR of ~38% and estimate Netweb to meet
its PAT margin guidance of 9–10%.

Addressing the 3Ds to command pricing power

Netweb caters to end-to-end enterprise customer needs with full-stack offerings
across – design, development and deployment (3Ds); thus, enabling its pricing power.
The company emphasises on its superior design capabilities in – 1) data centre; 2)
Surface Mount Technology (SMT); 3) super computers; 4) AI and enterprise
workstations optimized for machine learning; and 5) private cloud solutions.

Key beneficiary of AI-led value creation in Indian listed space

Since the launch of ChatGPT in Nov’22, AI economy has benefitted mostly the top of
the AI value chain i.e. 1) chip makers; 2) foundational model makers (OpenAI,
Anthropic, Cohere, MistralAI- mostly unlisted); and 3) co-location data centre
providers, with downstream benefit for hyperscalers.
AI-led benefit for IT services has been minimal over the three-year period, as IT services
have underperformed the players at the top of the value chain (Exhibits 2–7). Though
some benefit may materialise for IT services, it could be combined with AI’s
deflationary impact leading to a muted fillip. We estimate AI-led fillip to reach IT
services in the next 3-5 years.
Netweb provides an entry into the AI-led economy in the Indian listed space,
underpinned by its: 1) indigenous IP and unique offerings as a consequence of its
strong R&D focus and first-mover advantage in the Indian super computer space; 2)
strong OEM partnerships with GPU makers; 3) full-stack offerings with design,
development and deployment, leading to higher pricing power / margins vs. EMS plays;
and 4) being the primary beneficiary of government’s AI and NSM programs, with
significant outlays along with policy support (i.e. DPDP, PLI).

Exhibit 1: AI-led value creation

Primary • GPU makers, EMS, Foundation model

Secondary • Data centres, Hyperscalers

Tertiary • IT Services

Source: I-Sec Research

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 2: GPU makers – primary drivers of AI-led value Exhibit 3: Data centres – secondary beneficiaries of AI led
creation* value creation*
70 NVIDIA AMD DLR EQUINIX
180
60 160

50 140
120
40
100
30 80
(x)

(x)
60
20
40
10 20

0 0

Feb-23

Sep-23

Feb-24

May-24

Oct-25
Oct-22

Nov-23

Jul-24

Feb-25
Oct-24
Nov-24

Apr-25

Jul-25
Dec-22

Mar-23

Jun-23

Dec-23

Mar-24

Dec-25
May-23

Aug-23

Aug-24

Jan-25

May-25

Aug-25
Nov-23

Oct-25
Feb-23

Sep-23

Feb-24
Oct-22

Jul-24

Feb-25
Oct-24
Nov-24

Apr-25

Jul-25
Dec-22

Mar-23

Jun-23
Aug-23

Dec-23

Mar-24

Aug-24

Jan-25

Aug-25

Dec-25
May-23

May-24

May-25

Source: I-Sec research, Bloomberg Source: I-Sec research, Bloomberg

* 1-Year Forward P/E * 1-Year Forward P/E

Exhibit 4: Netweb – prime beneficiary of AI-led value Exhibit 5: Hyperscalers – secondary beneficiaries of AI-led
creation in the Indian listed space* value creation*
NETWEB IN EQUITY Avg +1SD -1SD AMAZON GOOGLE MSFT
140 50
45
120
40
100 35
80 30
25
60
(x)
(x)

20
40 15
10
20
5
0 0
Sep-24

Mar-25

Sep-25

Feb-23

Feb-24

Feb-25
Oct-24

Apr-25

Jul-25

Oct-25

Oct-22

Nov-23

Nov-24
Jun-24

Dec-24

Jun-25

Dec-25

Dec-25
May-24

Aug-24

Jan-25

May-23

Aug-23

May-24

Aug-24

May-25

Aug-25
Source: I-Sec research, Bloomberg Source: I-Sec research, Bloomberg
* 1-Year Forward P/E * 1-Year Forward P/E

Exhibit 6: EMS – one of the key beneficiaries of AI-led Exhibit 7: IT services – tertiary beneficiaries of AI-led
value creation (especially DIXON), partially led by value creation (no fillip post 3 years of AI surge)*
scarcity premium*
DIXON ZEN AVALON SYRMA ACN TCS INFY WPRO
120 35

100 30

80 25

60 20
(x)

(x)

40 15

20 10

0 5
Feb-23

Feb-24

May-24

Feb-25
Oct-22

Nov-23

Nov-24

Dec-25
May-23

Aug-23

Aug-24

May-25

Aug-25
Feb-23

Nov-23

Feb-24

Feb-25

Dec-25
Oct-22

Nov-24
Aug-23

Aug-24

Aug-25
May-23

May-24

May-25

Source: I-Sec research, Bloomberg Source: I-Sec research, Bloomberg

* 1-Year Forward P/E * 1-Year Forward P/E

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Executive summary
Introduction
Netweb is a high-end computing solutions provider with offerings across: 1) high
performance computing (HPC); 2) AI; and 3) hyper-converged infrastructure (HCI) and
private cloud. These are its three key segments. Netweb does design, manufacturing
and deployment of servers, super computers and HCI for its marquee client base across
government/private enterprises, which forms 43%/57% of its Q2FY26 revenue. Its
marquee client base spans sectors such as higher-education institutes, space
research, defence and IT services.
Business model
Netweb designs bespoke end-to-end solutions for government and private clients
sourced through pro-active sales methods. The solutions are priced at 27-28% of gross
margin across all segments. Offering full stack solutions (hardware+ software) gives
Netweb the pricing power to have mid-teens EBITDA margin vs. single-digit margin
commanded by other EMS plays. Margins are slightly better for AI & EW and export
projects.

Segment share FY25 Sectoral tailwinds

• Government’s Make in India push along with policies like DPDP Act (which
HCS focussed Spare &
Network
Software and Service, Others, 4%
switches, 1%
4%

Data centre server, 3%

HPC
(Supercomp encourages data localisation) and PLI Scheme for IT hardware.
uting
High performance system),

• Huge government outlay for programmes like: National Supercomputing Mission,

storage (HPS) solutions, 35%
2%

AI systems &
enterprise
IndiaAI Mission.
workstations, 15%

Private cloud &

• Robust demand across key segments of HPC, AI-enterprise workstation and
HCI, 35%
private cloud - HCI.

Company’s USP

Revenue growth estimates • Full stack of product and solution suite with comprehensive capabilities in
Revenue (INR mn) Growth, % designing, developing, integrating and implementing HCS solutions.
50000 104.5 120.0
45000
40000 80.1
90.3 100.0 • Deep expertise in designing, architecting and manufacturing (e.g. SMT).
35000 80.0
62.7
(INR mn)

30000 58.7
25000
20000
60.0 • OEM partnership with NVIDIA helps Netweb beat the curve in designing,
15000
10000
40.0
architecting and manufacturing AI systems, as Netweb gets access to NVIDIA’s
20.0
2.5
5000
0 0.0 latest product pipeline 12-24 months in advance.
FY22

FY23

FY24

FY25

FY26E

FY27E

FY28E

• Marquee and diversified client base spanning across higher education and
research, IT and ITES, space and defence, etc.
EBITDA margin estimates
Estimates and valuation
EBITDA margin, %

14.4
14.2
14.2 • We expect FY25-28E revenue and EPS CAGR of ~59%.
13.9 13.9
14.0

• We value the company at a one-year forward PE of 56x, in line with the lifetime
13.8
13.6

average multiple of Dixon Technologies, on Q3FY27E one-year forward EPS of INR

13.4
13.2 13.1
13.2

73 to arrive at a Dec’26E TP of INR 4,110.

13.0
12.8
12.6
12.4
FY24 FY25 FY26E FY27E FY28E Key risks
• Non-annuity nature of the business.

• Margin dilution from mega deal execution.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Focus charts
Exhibit 8: Indian TAM of 5 key segments is expected to Exhibit 9: Top 3 segments’ growth has been >50% YoY on
grow at 12.6% CAGR a rising base
HCI Data centre HPS HPC India AI Systems & 90% Top-3 segments Growth, % 200%
Enterprise Workstations
18000 80% 154%
16000 70% 150%
1,456
14000 919 60% 100%
948
12000 73% 100%
50%
(USD mn)

4,564 61%
10000
40%
8000 334 50%
539 30%
6000 709

4000 3,414 8,007 20% 0%

2000 10% -40%
2,797
0 0% -50%
FY23 FY29E FY21 FY22 FY23 FY24 FY25

Source: I-Sec research, Frost and Sullivan, Company RHP | Actual TAM for Data Source: I-Sec research, Company data
Centre may be higher post DPDP act implemented by govt. in Nov’25

Exhibit 10: Marquee clientele Exhibit 11: Share of top-3 strategic segments has grown
steadily in last two years
HPC HCI AI systems & workstations

100
90
80 21.8
70 11.1
60
(%)

50 33.6
33.9
40
30
20
28.4 33.6
10
0
Q2FY23 Q2FY26

Source: I-Sec research, Company data Source: I-Sec research, Company data

Exhibit 12: Top-3 segments’ CAGR has improved over Exhibit 13: Rangebound EBITDA margin performance
the years
Top-3 segments' CAGR improving EBITDA margin, %
90 16
77.4
80
15
70
14
60
(%)

50 45.0 13
(%)

40 12
30
11
20
10
10
1QFY24

2QFY24

3QFY24

4QFY24

1QFY25

2QFY25

3QFY25

4QFY25

1QFY26

2QFY26

0
FY20-23 FY22-25

Source: I-Sec research, Company data | includes: HPC, Private Cloud & HCI and AI Source: I-Sec research, Company data
systems & enterprise workstations

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 14: Expect FY25-28E revenue CAGR of ~60% Exhibit 15: Slightly muted EBITDA margin expected in
FY27E due to IndiaAI INR 17bn mega deal execution

Revenue (INR mn) Growth, % EBITDA margin, %

50000 104.5 120.0 14.4

45000 14.2
90.3 14.2
40000 100.0 13.9
80.1 13.9
14.0
35000 80.0
62.7 13.8
(INR mn)

30000 58.7
25000 60.0 13.6

(%)
20000 13.4
40.0 13.2 13.1
15000 13.2
10000 20.0 13.0
5000 2.5
12.8
0 0.0
12.6
FY22

FY23

FY24

FY25

FY26E

FY28E
FY27E

12.4
FY24 FY25 FY26E FY27E FY28E

Source: I-Sec research, Company data Source: I-Sec research, Company data

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Table of Contents

Executive summary ................................................................................................................................. 4

Focus charts ............................................................................................................................................... 5
Sectoral tailwinds for Netweb ............................................................................................................ 8
Growing private cloud and HCI; high-end computing solutions to see growth surge
.................................................................................................................................................................... 8
‘Make in India’ push for home-grown infrastructure ...........................................................10
Data centre demand surge............................................................................................................13
AI and enterprise workstation ......................................................................................................14
India’s robust talent..........................................................................................................................15
Digital Personal Data Protection Act.........................................................................................16
Company offerings ................................................................................................................................17
Growth drivers ........................................................................................................................................21
Company USP .........................................................................................................................................22
Operating metrics ..................................................................................................................................26
Company financials...............................................................................................................................28
Peer comparison and valuation........................................................................................................30
Key risks .....................................................................................................................................................33
Company Overview...............................................................................................................................35
Annexure ...................................................................................................................................................36

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Sectoral tailwinds for Netweb

Growing private cloud and HCI; high-end computing solutions to see
growth surge
Private cloud
Given GoI’s push towards data localisation, there is movement from public to private
cloud. The demand is fuelled by data security and shift to cloud infrastructure. This is
creating a new opportunity for Netweb.
Private cloud gives enterprises: 1) Full control over software and hardware choices, 2)
freedom of customisation, 3) greater visibility into security and access control as all
workloads run behind customers’ own firewall and 4) full compliance with regulatory
standards. Globally, private cloud is expected to see a 19.2% CAGR; wider adoption is
expected in India as well.

Exhibit 16: Private cloud and HCI to see 19.2% CAGR globally

in USD mn

9000
8007
8000
7000 6628

6000 5517
(USD mn)

5000 4615
3876
4000 3309
2797
3000
2000
1000
0
CY23 CY24 CY25E CY26E CY27E CY28E CY29E

Source: I-Sec research, Frost & Sullivan

HCI
HCI is a software-defined IT framework that combines storage, computes and
networking into a single, unified system. HCI demand surge will likely come from the
streamlining of IT infrastructure in India. Enterprises would move away from managing
outdated, scattered systems, towards more strategic efforts. HCI’s demand drivers
include 5G, government, defence, BFSI, telecommunication, media and oil & gas.
Netweb has received the approval to participate in PLI schemes under Telecom and
Networking PLI scheme. Private cloud and HCI CAGR is expected to be higher at 19.2%
in upcoming years vs. the 17.7% CAGR achieved earlier.

Exhibit 17: Private cloud and HCI – CY19–22’s 17.7% Exhibit 18: Private cloud and HCI – BFSI and government
CAGR driven mostly by BFSI, government and defence spending to continue driving CY23–29E CAGR of 19.2%
Govt and defense BFSI
Govt. and defense BFSI IT & ITeS
IT & ITeS Telecommunications
Media Oil and Gas Telecom Media Oil and gas
Others Others
10000
2500
8007
8000
2000 781 6628
(USD mn)

667 5517
(USD mn)

6000
1500 569 164 4615
139 207 3876
486 193 3309
119 177 4000
1000 151 164 2797
101
129 140 548
119 471 2000
500 347 404
116 145
75 93
197 234 278 331 0
0
CY23 CY24 CY25E CY26E CY27E CY28E CY29E
CY19 CY20 CY21 CY22
Source: I-Sec research, RHP Source: I-Sec research, RHP

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Netweb Technologies India | Initiating Coverage | 15 December 2025

HPC
The global demand in HPC is led by use cases in: 1) Healthcare and life sciences (e.g.
cancer research, human genome sequencing, molecular modelling), 2) automated
stock trading, 3) weather forecasting, 4) executing AI simulations, 5) data analyses
from radar, IoT and GPS systems, 6) aerospace simulations, 7) discovering potential
new sources of energy.
India’s HPC market is set to grow at a rapid pace of 9.3% FY24–29 CAGR. Earlier, the
demand for HPC was research-led, mostly by educational institutes. That has changed
with more use cases coming from areas like manufacturing, aerospace, video
animations, gaming, automobile, healthcare, oil and gas segments.

Exhibit 19: India’s HPC market is expected to grow at 9.3% CAGR

1000 918.6
900
800
700
588.9
(in USD mn)

600
500
377.5
400
300
200
100
0
FY19 FY24 FY29E

Source: I-Sec research, Frost & Sullivan analysis

Exhibit 20: Indian HPC market by computation size: Exhibit 21: Indian HPC market by application: IT, ITeS and
Exascale computing is expected to see the highest BFSI to see maximum CY23-29 CAGR of 13.8%/11.3%
CY23-29 CAGR of 9.3%

Parallel computing Distributed computing Govt. and Defense BFSI IT and ITeS
1000 Telecom Media Oil and gas
Others
900 18.4
16 1000 919
800 840
13.9
700 12 356.2 769
326.9 800 704
10.4 644
600 298.3
(USD mn)

8.9 272.2 589

7.6 539
(USD mn)

500 248.4 600

226.7
400 206.9
400
300
497.5 542
200 419.2 456.7
324.3 353.3 384.8 200
100
0 0
CY23 CY24 CY25 CY26 CY27 CY28 CY29 CY23 CY24 CY25E CY26E CY27E CY28E CY29E

Source: I-Sec research, Company RHP Source: I-Sec research, Company RHP

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Netweb Technologies India | Initiating Coverage | 15 December 2025

‘Make in India’ push for home-grown infrastructure

India’s AI ecosystem is growing rapidly but still lags behind other developed countries.
There is strong adoption of SLMs and domain-specific LLMs. India’s AI market is
expected to grow at 25% CAGR till 2027.

Exhibit 22: Indian AI startup ecosystem is lagging w.r.t. several developed nations;
has a long runway ahead
6000 Number of newly funded AI startups (2013-2023)

5000

4000

3000
(Nos)

2000

1000

Israel

France

Japan

Singapore
India

Germany
US

China

UK

Canada
Source: I-Sec research, [Link]

IndiaAI Mission: Support from GoI; planned outlay of INR 103bn for next 5 years
IndiaAI is a business unit under Digital India Cooperation, within Ministry of Electronics
and Information Technology (MeitY). With cybersecurity risks at the highest, IndiaAI
mission was launched on Mar’24, in a step towards strengthening India’s indigenous
AI ecosystem with an outlay of INR 103bn to empower AI startups and expand
infrastructure access through public private partnership and localise country’s data.
The IndiaAI business comes as Indian government pushes towards building sovereign
digital and compute capital.
The wheels are already turning for IndiaAI Mission with strides across the seven pillars.

Exhibit 23: Pillars of IndiaAI mission with status update

Description Objective Update
Deploying 10,000 GPUs through public
The plan has been commenced with
private partnership for a scalable AI
expansion of purview to 38,000 GPUs,
Pillar 1 IndiaAI compute capacity computing infrastructure. These GPUs
out of which 17,000 installations are
will help train LLMs with capacity of >
already done.
100bn parameters.
The call for proposals under IndiaAI
Focusing on developing and deploying Innovation was launched on 30th
indigenous large multimodal models Jan’25. A total of 506 proposals have
(LMMs) and domain-specific been received across 3 phases. As part
Pillar 2 IndiaAI Innovation Centre
foundational models. These models will of the first phase of approvals, four
cater to the unique needs of India's startups have been selected to initiate
diverse industries and sectors. the development of indigenous
foundational models.
The India Al Datasets Platform (AI
Kosh) aims to revolutionise access to
high quality, non-personal data, AI Kosh has over 3,000 data sets
empowering researchers, Indian across 20 sectors and 40
Pillar 3 AI Kosh IndiaAI Datasets Platform: startups and developers to accelerate organisations. It has more than 240
AI-driven innovation. The platform will models to support new AI solutions,
act as a unified hub for seamless data some of which are uploaded by IITs.
discoverability, integration and access,
supporting the creation of robust and

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Description Objective Update

scalable AI solutions. By standardising
metadata, enabling API-based access,
and supporting Al-ready data formats,
the platform will ensure interoperability
and ease of use. It is designed to foster
experimentation, reproducibility, and
collaboration across the AI research
and development ecosystem. AI Kosh is
a ready to use data set for an AI
project.
The goal is to democratise access to
capital for AI entrepreneurs through
various financing support mechanisms
relevant to the lifecycle stages of AI
startups (early seed stage to scale-up Govt. funded 8 rounds of startup in the
stage). This initiative will help foster first round. The second round received
Pillar 4 IndiaAI startup financing
partnerships between government a strong response with over 500
bodies, venture capitalists, and industry applications.
to boost funding availability. Access to
opportunities for Indian startups to
provide for global needs via strategic
interventions and partnerships.
This initiative promotes AI applications
30 AI solutions addressing critical
in critical sectors across state and
challenges have been shortlisted under
IndiaAI application development central government departments and
Pillar 5 IndiaAI Innovation Challenge, from
initiative other institutes. It focuses on
over 900 submissions, for the next
developing, scaling, and promoting the
stage.
adoption of impactful AI solutions.
This pillar aims to reduce entry barriers
into AI programs by increased AI The IndiaAI FutureSkills pillar is in
courses at undergraduate, master’s active implementation, having
and PHD levels. Under this initiative, AI awarded over 200 fellowships to
Pillar 6 IndiaAI future skills
Labs will be established in tier-II and III students and initiated the
cities to offer foundational courses. The establishment of dozens of new data
plan is to set up 570 AI and data labs in and AI labs.
tier-III and II cities.
Through this the govt. ensures
responsible AI development through
implementing responsible AI projects,
Pillar 7 Safe and trusted AI developing indigenous tools and
frameworks, and establishing
guidelines for ethical, transparent, and
trustworthy AI technologies.
Source: I-Sec research, IndiaAI website

Other tailwinds for AI

• On top of IndiaAI mission, AI is being layered on top of India’s DPI (Digital Public
Infrastructure) which includes: UPI, Digilocker, Aadhar, BHIM; which will facilitate
financial inclusion, smart governance and personalised citizen services.

• Government of India’s-PLI scheme for IT hardware and network switches will also
act as a tailwind, which Netweb received in 2021. Netweb is one of the select 14
names eligible for government’s PLI scheme for IT hardware.

Exhibit 24: India's sovereign AI spending is low in comparison to others; indicates

further scope for increase in outlay
Sovereign AI infrastructure Sovereign AI investment
in USD bn GDP
development outlay as % of GDP
India 1.25 4,000 0.03%
Canada 2.4 2,240 0.11%
China 47.5 18,500 0.26%
Saudi Arabia 100 1,240 8.06%
France 117 3,160 3.70%
Source: I-Sec research, Stanford Artificial Intelligence Index Report 2025

National Super Computing Mission (NSM): Planned outlay of INR 45bn

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Netweb Technologies India | Initiating Coverage | 15 December 2025

HPC plays an important role in the scientific and economic competitiveness of a nation.
Indian supercomputers do not feature in the top-10 supercomputer list across the
world, indicating a long road ahead for catch up.

Exhibit 25: India has a long way to go in supercomputer compute speed, as

Netweb’s Kabru supercomputer has been able to achieve speed of 959 gigaflops
and AIRAWAT has a peak speed of 0.013 exaflops
Supercomputer name Country Processing Speed (in exaflops)
El Capitan US 1.742
Frontier US 1.353
Aurora US 1.012
Jupiter Booster US 0.793
Eagle US 0.561
HPC6 EU 0.478
Supercomputer Fugaku Japan 0.442
Alps Switzerland 0.434
LUMI EU 0.379
Leonardo EU 0.241
Source: I-Sec research

National Super Computing Mission is being jointly led by Meity (Ministry of Electronics
and IT), DST (Department of Science and Technology), C-DAC (Centre of Development
of Advanced Computing), IISc Bengaluru, to meet the increasing computational needs
of researchers, academia, startups and MSMEs in order to boost country’s computing
power. Of the planned outlay of INR 45bn, 16.67% has been used and the remaining
allocation will be done in the next couple of years. The National Supercomputing
Mission is setting up a grid of supercomputing infrastructure in academic and research
institutions across the country.

Exhibit 26: Details of supercomputers commissioned under NSM

Compute power Number of system's commissioned
Lower range (≥ 50TF, < 500TF) 13
Mid-range (above 500 TF, but < 1 Petaflops) 8
Large scale (> 1 Petaflops includes GPU) 7
Source: I-Sec research, [Link]

Some notable achievements under NSM are:

• A total capacity of 24.83PF HPC machines built locally and commissioned across
the country, which could bring India in the list of top-10 supercomputing powers
globally.
• Development of Rudra server board 1.0, Trinetra HPC interconnects, HPC system
software stack 1.1 and various benchmarks (cloud, HPC) applications.
• 17,500 people have been trained so far in high-performance computing.
• More than 5,930 expert users from 100+ institutes are using the facilities routinely.
• 73,25,604 high performance computational queries have been executed till
recently.
• As on 12 Aug’25, 37 supercomputers with a total computing power of 40 Petaflops
have been installed under the NSM. These systems are set up in leading institutions
like IISc, IITs, C-DAC, R&D Labs and also in several academic institutions and
research organisations in tier-II and tier-III cities across the country.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Data centre demand surge

The increased compute and private cloud demand will be the key driver of data centre
demand surge. Global demand is expected to grow at FY23-29 CAGR of 9.7% and
Indian demand is expected to grow at 5% (per RHP). However, this will likely be higher
going forward, post DPDP Act implementation in Nov’25. Large hyperscalers could be
leading the demand for data centres in India.
Data centre servers have witnessed uses cases and adoption in BFSI, government and
defence, IT and ITES, telecommunications, media, and oil & gas sectors as these
sectors deal with a huge amount of data. India currently has 1.2–1.4GW of data centre
capacity.

Exhibit 27: Demand drivers for data centres

IoT and 5G Digital

Technologies Commerce

Hyperscale
data OTT services
centres

AI
Commerciali
zation of 5G
networks

Source: I-Sec research

Exhibit 28: Global data centre market is expected to Exhibit 29: Indian data centre market is expected to grow
grow at 9.7% CAGR in FY22-29 at 5% CAGR in FY23-29

Global data centre market India data centre market

250 5.0 4.6

198.3 4.5
200 4.0
3.4
3.5
(in USD bn)

150
(USD bn)

3.0
103.5 2.5
100
2.0
1.5
50
1.0
0.5
0
0.0
FY22 FY29
FY23 FY29

Source: RHP, I-Sec research Source: RHP, I-Sec research | the FY29 estimate may be higher post DPDP
implementation in Nov’25

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Globally, due to significant investments in data centres, gaming, cloud computing,

autonomous vehicles, and AI and VR technologies, Europe is one of the market's
fastest expanding regions.
TCS is foraying into the data centre business and could be establishing multiple AI and
sovereign data centres for providing infrastructure and technology-enabled services
through a wholly-owned subsidiary in India, with a capacity of 1.2GW. This indicates
the quantum of data centre opportunity. It aims to reach full capacity in 5–7 years with
~150MW expanded each year. Financing will be via a mix of debt and equity. Data
centre services would be provided on a colocation basis. Potential customers include:
Government of India and states, hyperscalers, deep tech, Indian enterprises who want
access to private cloud, and for training LLMs. The subsidiary could have a separate
management with adjacencies to TCS.

AI and enterprise workstation

Enterprise workstation is a computer system specifically designed for AI-related tasks
with specialised hardware, which includes: 1) TPU (Tensor Processing Unit) or FPGA
(Field Programmable Gate Array); 2) RAM; 3) storage; 4) power supply unit; 5)
motherboard and 6) built-in cooling system.
There is increased adoption of AI workstation in media and intelligence, defence and
intelligence. The demand in AI and enterprise workstation will be driven by: 1) growing
demand of GPUs in high end gaming consoles, video games; 2) BFSI industry’s usage
(algorithmic trading, customer analytics, risk modelling); 3) sharp increase in 3D
animation; and 4) fillip in Indian market from ‘Make in India’. AI and EW estimated
FY23–29 CAGR for India is higher at 27.8% vs. 4.5% estimated globally (per RHP).

Exhibit 30: India AI systems and enterprise workstations revenue is expected to

grow at FY23–29 CAGR of 27.8%

India AI systems and enterprise workstations

1600 1456.4
1400
1137.8
1200
1000 889.2
(USD mn)

800 695.3
543.9
600
425.8
400 333.6

200
0
CY23 CY24 CY25 CY26 CY27 CY28 CY29

Source: I-Sec research, Company data

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Netweb Technologies India | Initiating Coverage | 15 December 2025

India’s robust talent

India currently accounts for world’s largest talent pool with 16% of global AI talent,
roughly >600,000 professionals, next only to the US. As per NASSCOM, India’s AI
Talent Pool is expected to grow to 1.25mn by 2027.

As per [Link], India ranks high in terms of AI talent –

• AI skill penetration rate: For India, it is 2.8, the highest globally, demonstrating that
its AI workforce is 2.8 times more skilled in AI-related competencies than the global
average.

• AI skill penetration for women: India leads again with a penetration rate of 1.7,
followed by US (1.2) and Israel (0.9). This achievement signifies India’s ongoing
efforts to bridge gender disparity in AI skill development.

Exhibit 31: India ranks high on Global AI vibrancy Exhibit 32: India has the highest AI skill penetration rate
ranking worldwide

Relative AI skill penetration rate by geograhic area, 2015-23

2.75
3.0

2.22
2.5

1.90
1.67
1.63
1.63
1.50
1.48
2.0

1.35
1.29
1.21
1.13
1.08
1.06
0.98
1.5
(x)

1.0
0.5
0.0
Isreal

Singapore
France
India

Germany
US

UK

Spain
Brazil
Netherlands
Italy

UAE
Canada

South Korea

Switzerland
Source: I-Sec research, AI Index- Stanford University Source: I-Sec research, [Link]

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Digital Personal Data Protection Act

Digital Personal Data Protection Act, 2023 (DPDP) promotes data privacy giving
power in the hands of end users (Data Principal) to give consent for usage of their data,
every step of the way for legitimate use and increased localisation of data, which acts
as a tailwind for Netweb’s private cloud business.
The following phrases from the DPDP act promote data localisation to be undertaken
by the data fiduciary.
“A Data Fiduciary shall protect personal data in its possession or under its control,
including in respect of any processing undertaken by it or on its behalf by a Data
Processor, by taking reasonable security safeguards to prevent personal data
breach.”

“The Central Government may, by notification, restrict the transfer of personal data
by a Data Fiduciary for processing to such country or territory outside India as may
be so notified.”

“Nothing contained in this section shall restrict the applicability of any law for the
time being in force in India that provides for a higher degree of protection for or
restriction on transfer of personal data by a Data Fiduciary outside India in relation to
any personal data or Data Fiduciary or class thereof.”

DPDP would aid Netweb by enabling it to create a stronger domestic market for HPC
and data security, which are among Netweb's key offerings. As companies face strict
compliance requirements and the risk of penalties, they will have a greater need for
localised IT infrastructure, advanced data protection services and robust security
services. This will likely lead to demand for specialised security offerings and
consulting, a market Netweb is well positioned to capture.

Exhibit 33: Netweb’s key segments’ combined FY29 estimated TAM is USD 15.9bn in India and USD 948bn globally,
growing at 12.6% FY23–29 CAGR
India Global India business Global business
USD mn FY23 FY29 FY23 FY29 FY23-29 CAGR FY23-29 CAGR
HCI 2,797 8,007 2,28,000 5,93,000 19.2% 17.3%
HPC 539 919 45,000 58,200 9.3% 4.4%
AI Systems & Enterprise Workstations 334 1,456 6,300 8,200 27.8% 4.5%
Data centre 3,414 4,564 1,13,600 1,98,300 5.0% 9.7%
HPS 709 948 65,000 78,800 5.0% 3.3%
Total TAM of key segments 7,793 15,894 4,66,200 9,48,611 12.6% 12.6%
Source: I-Sec research, Company RHP
Note: The Indian data centre TAM is estimated to be higher after Indian govt passed the DPDP act in Aug’23. Per JLL, the Indian data centre market is expected to reach
USD30bn by CY30 as India produces 20% of global data.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Company offerings
Netweb sells all the products under the umbrella brand name Tyrone started in 2005,
with various sub brand names catering to each of its segments. Company has installed
600+ HPC systems, 60+ private cloud and HCI and 7,000+ accelerator/ GPU-based
systems as on Q2FY26.

Exhibit 34: Company offerings

Netweb’s offerings

Products Solutions

Data centre server AI & Big Data

AI system and HPC

enterprise
workstation Cloud
Private Cloud HCI
(Hyper Converged
Infrastructure) Kubernetes

High performance storage- Surveillance

FS2, Storage Array

Unified Storage
High performance Solution
computing systems- HPC,
TCM

Source: I-Sec research, company

Exhibit 35: Netweb’s product solution portfolio

Source: I-Sec research, company

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 36: Netweb’s offerings

Offering description Key products/ services Peers
AI systems - advance and powerful AI systems
based on latest Gen GPU architectures design and Tyrone Janus workstation No Indian player; Netweb
AI & EW
manufactured in India under OEM partnership with Solutions has partnered with NVIDIA
Nvidia & AMD.
Private cloud and HCI offer hyper-converged
HCI cloud (Skylus), KUBYTS
capabilities i.e., combining compute, storage and VMware, Nutanix, RedHat,
Private Cloud and HCI platform
network within a single pre-configured hardware Suse
Skylus Cloud for HCI
box.
Bespoke and purpose-built specialised hardware Tyrone Camarero DIT400 Series,
HPC designs and architecture. Cater to run complex SDI100 IBM, ATOS, Lenovo, HPE
algorithms and applications at scale. series
Designed to reduce the complexity of managing Data Center Server – Camarero
Data centre HPE, IBM, Dell, Lenovo
critical and heavy workloads. series
Centralised repository for business-critical
HPS information that provides data sharing, data Tyrone verta, parallelstor, velox HPE, NetApp, Dell, HITACHI
protection across multiple computer systems.
Cloud Managed Services – these offer partial or
IT services plays,
Software and complete management and control of a client's
hyperscalers (Google, AWS,
Services for HC Offering cloud platform, including migration, maintenance
Microsoft)
and optimisation.
Source: I-Sec research, Company data

Deep expertise in high-performance computing and private cloud (important part

of the mix):
Netweb’s high performance computing and private cloud are its oldest and high
performing business segments (sans the recent strong pickup in AI business).
Company has been designing and manufacturing supercomputers for the last 20
years.
Netweb sells its offerings (hardware and software bundle) under the brand name
of Tyrone.
For its group of offerings, the company has offerings under various brand names such
as: 1) Skylus, 2) TCM, 3) Tyrone Verta, 4) Kubyts, 5) ParallelStor, 6) Camerro and 7)
Collectivo.
1) [Link] – easy way to set up GPU-based AI lab infrastructure: It is a unified
composable GPU orchestration platform, launched in Feb’25 (a-plug-and-play
platform for GPU-based infrastructure). [Link] is an appliance for GPU resource
management across multiple vendor environments. It includes Kubyts- (which is a
workbench offering pre-built, pre-tested, ready-to-deploy container images, for
simplifying application deployment) and ParallelStor (for ensuring low latency and
high throughput large scale AI applications).
The product already has a strong order book. It is a term license-based product,
which serves three stages of the AI process – 1) development; 2) training; and 3)
inference. Netweb provides customised Skylus solutions for enterprises.
[Link] supports industries such as finance, pharmaceuticals, education,
automotive design or any organisation looking to leverage the power of AI.
2) TCM (Tyrone cluster management) suite: Netweb’s supercomputing systems are
tailored with specialised hardware design and architecture. With TCM suite,
Netweb has deployed a wide range of supercomputing systems from 10 node
systems to 400 nodes, scalable up to 1000 nodes.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 37: Case study – deployment of unique data centre with hybrid
architecture and HPC cluster at IIT Jammu
Problem statement: Designing a Data Center with the lowest hardware footprint yet highest
performance. Integrating cloud & Big Data facilities with existing networks. To build a single platform
that could facilitate CPU and GPU intensive workloads.

Deployment: The challenges were to integrate diverse user requirements, campus networking, and IT
services on board in a single infrastructure for optimized usage and performance. Netweb designed the
entire compute infrastructure resulting in a high-performance data center with a low PUE (Power Usage
Effectiveness) level. The final design was a complete Data Centre with HPC Cluster, Big Data Cluster, a
Private Cloud for IIT Jammu and a high throughput parallel file system. The HPC system consists of 80
compute nodes, each with a 20-core Intel processor. Each core runs at 2.50 GHz and has 32 GB of
memory. The system provides about 450 TFLOPs of computing power.

Results: Netweb deployed Data Centre ‘Agastya’ with the following specifications: 1) Computing power
of 450TF, 2) 256TF of peak performance from CPUs and 56TF from GPUs, 3) 48TB of total memory and
4) Data Center PUE of 1.4.

Client Feedback: “The overall efficiency of the cluster was highly optimized by Netweb HPC experts
which led to higher performance. Even the sustained storage throughput/performance surpassed the
criteria we had set.”

Source: I-Sec, Company data

3) Kubyts: Kubyts is a catalogue of GPU and CPU accelerated container applications

and images for deep learning software, HPC visualisation tools and HPC
applications. It is a repository of 100+ containers and 50+ applications for DL, ML
and HPC workloads. It allows one to easily build, ship and run applications using
container technology and speeds up deployment of HPC and AI development
across different platforms and hardware. With Kubyts platform, applications can
be deployed in seconds.
4) ParallelStor: ParallelStor is designed to support file and object access for
demanding workloads, ensuring high throughput and low latency. It also provides
high bandwidth (e.g., EDR-100GB/s, HDR-200GB/s) for massive data
requirements. Parallelstor gets seamlessly integrated with Netweb’s [Link]
platform for efficient data management for large scale AI applications.
5) Tyrone Camero AI platform: This platform is specifically designed to address the
growing demands of next generation computing. The platform supports 1) next
generation AI foundational training, 2) exascale computing, 3) memory intensive
workload, 4) development and deployment of large multimodal models and 5)
scalable AI solutions.
6) Verta: The Verta series are flexible and versatile storage platforms used mostly for
surveillance purposes.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 38: Case study – deployment of Tyrone Verta Surveillance Storage solution
for a leading oil producer in Kuwait
Problem statement: Customer needed storage solution for surveillance application in its new oil field
with remote monitoring, fast retrieval and secure ingestion of data from large number of cameras.

Deployment: The Tyrone Verta D4ZC-36S was used as the recording server along with Milestone
XProtect Corporate Video Management Software (VMS) solution to ensure security and maximum data
efficiency.

Results: The implemented Tyrone Verta storage system provided:

• Functioning in failover mode to provide high availability and redundancy.

• Verta D4ZC-36S - a highly scalable solution offering storage capacity starting from a few TBs to
PetaBytes.

• The high-performance SSD cache helps clients get more data on-the-fly as the data is temporarily
stored in the cache.

Source: Company data

7) Collectivo: Collectivo is one of the leading parallel file systems custom designed to
handle immense workloads in a performance-critical environment such as storage
and archival requirements. In addition, its hardware and software can also be
configured accordingly. With an ability to scale up or down at will, it is suitable for
high throughput workloads experienced in archival and surveillance applications.
These applications demand strict fault tolerance and mandatory system integrity,
which Collectivo delivers.
Netweb is also foraying into new product lines like network switches, surveillance
and 5G ORAN.
• Netweb’s key HPC offerings include supercomputers with GPU optimisation, HPC
clusters, HPC on-cloud, SMP solutions and other management tools.

• The major supercomputers deployed by Netweb are: AIRAWAT, PARAM AMBAR,

PARAM YUVA II, KABRU and AGASTYA.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Growth drivers
Currently, AI segment is the fastest growth mover. In FY25, AI was expected to form
20% of the revenue by the end of FY26, prior to the IndiaAI mission large order.

Exhibit 39: Key growth drivers – 3 segments – HPC, private cloud and AI systems

AI Systems

Private
Cloud

High
Performance
Computing

Source: I-Sec research, Company data

Exhibit 40: 6 key segments with 4 having exceptionally high FY22–25 CAGR; private cloud and AI-led growth

High Private Cloud

AI systems Software and Data Centre High
Performance and Hyper
and enterprise Services for and Servers performance
computing Converged
work stations HCS offerings storage
Infrastructure

35% of FY25 35% of FY25

revenue 15% of FY25 4% of FY25 3% of FY25 2% of FY25
revenue
revenue revenue revenue revenue
57.9% FY22- 103.3% FY22- 91% FY22-25 87.6% FY22- 15.7% FY22- 8.2% FY22-25
25 CAGR 25 CAGR CAGR 25 CAGR 25 CAGR CAGR

Source: Company data, I-Sec Research

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Company USP
A combination of product and solution suite; end-to-end deployment gives it the
pricing power
Netweb has a unique value proposition of being an end-to-end solutions provider. It is
different from sole EMS (electronic manufacturing services) players as it provides
software stack along with PCB manufacturing. It is different from IT services as well
given the hardware and HPC component of the business.
Netweb’s margins are consistent, given it is an end-to-end solutions providing,
designing, hardware manufacturing and software implementation and servicing play,
which gives it the pricing power that peers are missing. Netweb offers hardware and
software bundled as a solution. Software part of the business commands higher
margins vs. hardware.
Prime beneficiary of AI wave in the Indian technology space
Since the launch of ChatGPT in Nov’22, it has been ~3 years and IT services plays have
largely underperformed, while hardware counterparts such as NVIDIA, AMD have
shown tremendous growth. In such a scenario, Netweb is emerging as a sole key
beneficiary of trickle-down value from hardware plays in the Indian market.
Netweb is also one of the few hardware beneficiaries of the PLI scheme for promoting
telecom and networking products manufacturing in India. It qualified for PLI scheme of
the government of India for IT hardware in 2021. A total of 14 Indian companies
qualified for PLI scheme among hardware plays.
OEM partnership with NVIDIA
• NVIDIA works in partnership with technology companies and this network is called
NPN (NVIDIA Partner Network). These partnership types are: 1) Cloud partner, 2)
data centre provider, 3) distributor, 4) education services, 5) global systems
integrator, 6) independent software vendor, 7) OEM, 8) service delivery partner, 9)
solution advisor, 10) solution provider, 11) storage partner and 12) system partner.
NVIDIA and Netweb entered into an OEM partnership in 2010. NVIDIA sees India
as an emerging market.
• Netweb’s partnership with NVIDIA is an OEM relationship, wherein it designs
and develops AI platforms using NVIDIA products and AI solutions. It has already
worked on designing AI ecosystem with NVIDIA Blackwell GB200 platforms
architecture. NVIDIA has endorsed Netweb’s AI GPU architecture. Netweb had
also introduced its ARM architecture-based GPU systems along with NVIDIA. For
IndiaAI mission, 10,000 NVIDIA GPUs need to be imported.
• Netweb manufactures over 200 server variations under the brand name Tyrone.
Netweb Tyrone offerings are based on NVIDIA’s latest chip sets. It expanded the
range of NVIDIA MGX platform-based servers in Q3FY25.
• Netweb’s AI GPU systems were spotlighted by NVIDIA CEO Jensen Huang at the
2024 NVIDIA AI Summit, affirming it’s pivotal role in advancing India’s indigenous
AI capabilities. NVIDIA presented Enterprise Partner of the year award to Netweb
in 2025.
• As an OEM partner, Netweb gets early access to NVIDIA’s latest GPUs and
reference architecture (12-24 months in advance). Netweb is well versed with the
know-how of integrating NVIDIA’s latest chips and architecture in its servers,
supercomputers and AI offerings.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Partnerships with AMD, Intel, Samsung, Seagate

• These partnerships support the co-development of products and services.

• Company uses: 1) AMD Genoa processors and 2) Intel Emerald Rapids to power
its servers. It also has partnerships with Samsung and Seagate.

• It works with 4th gen AMD EPYC- Turin processors to meet demanding needs of
high-performance computing environments and diverse workloads at data centre
AI systems.

Design capabilities – Netweb’s forte

Netweb offers integrated design and manufacturing capabilities. Between
manufacturing and designing, Netweb considers designing as its true forte which is
relatively irreplaceable. It has deep capabilities in kernel-level designs and hardware
product designs of offerings such as: 1) End to end design and production of Make in
India server, 2) PCB assembly with SMT (surface mount technology) and 3)
motherboards (consisting of 16-24 layers) 4) supercomputers.
Strong track record
Post the IPO, company has been able to hire and retain good talent and is not facing
any talent crunch. Through ESOPs, Netweb has been able to retain talent. The average
top management tenure in the company is ~15–20 years.

Exhibit 41: Successful installation track record

Source: Company

Marquee clientele
Company has several government departments, BFSI, educational institutes, defence,
IT-ITeS as its marquee clients. It intends to add more of such marquee logos to its client
list. Netweb has 308 repeat clients as on FY25 and a total client base of >2000.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 42: Diverse customer base across government institutions and private
enterprises

Source: Company data

• New avenues are opening up for supercomputing: Earlier, supercomputer

demand was mostly limited to educational and research institutes. Now, demand
has started coming in from segments such as oil and gas, consumer durables,
automobile, manufacturing (for use cases: digital twins, driverless cars). Company
expects HPC to be 35–40% of its revenue in the near-to-medium term. It has been
active with clients in BFSI, space, defence, government institutes in the HPC space.
However, 70-75% of the supercomputing segment is dependent on government.
NSM 2.0 could be a major tailwind for supercomputing sub segment.

• Export business growing multi-fold: Domestic demand has been strong, driving
the ~60%+ YoY growth each year for the last four years. Currently, exports form
5-6% of the total revenue. Company sees this share going up to 10% in the next
2–3 years. However, as of now, the company expects to keep exports rangebound
given the high domestic demand. Europe, Singapore and the Middle East are the
first focus areas of company’s export business.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 43: Export revenues grew multi-fold in FY25

700 Revenues from outside India
623
600

500

400

(INR mn)
300

200

100
28
5 5
0
FY22 FY23 FY24 FY25

Source: I-Sec research, Company data

• Proactive approach to sales: Company doesn’t wait for RFPs. It rather works
proactively to reach the customer base through seminars, end user reach-out
programmes, participation in product education symposiums, tracking tenders on
government portals. Company is also focused on building long-term relations with
private enterprises. Netweb’s sales function works zone wise with zonal leaders.
Company is mostly keeping large enterprises in its radar. It makes custom AI
solutions for enterprises.

• Better pricing power: Being an end-to-end solution provider, from design to

manufacturing to software and deployment, gives Netweb higher pricing power
over its peers.

• Faridabad plant established in May’24: The new plant encompasses the entire
spectrum, from designing Printed Circuit Boards (PCBs) to surface mounting on
PCBs and finally the production of complete systems. The facility includes PCB
design, manufacturing and SMT for high-end computing, server, storage, switches.
The plant has capacity to make 7,500 servers in a year.

• The Faridabad facility enables the company to manufacture ‘Make in India’ high-
end computing systems based on new generation chips from its technology
partners Intel, NVIDIA and AMD. Netweb also has collaborations with academic
and research institutions. Capex of INR 322.86mn was capitalised for construction
of the building for SMT line in FY24. The manufacturing facility has received a ‘ZED
Bronze’ certification from the Ministry of Micro, Small and Medium Enterprises.

• Company has presence across 18 different offices in India.

Netweb’s moat is held by –

• Good track record of customer service with marquee client portfolio.

• Consistent outperformance on revenue growth and EBITDA margin guidance of
35-40%/ 14-15%. The company has also been able to maintain the PAT margin at
~10% levels.
• First mover advantage on several fronts i.e. manufacturing, designing and
installing country’s first supercomputers.

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Operating metrics
Exhibit 44: Indian footprint- Company has manufacturing plant in Faridabad and
offices across 18 locations in the country

Source: Company data

Exhibit 45: Netweb has strategically increased its Exhibit 46: Product heavy business mix; services side is
private enterprises share from 38% in FY20 to 48% in also growing steadily
FY25
Government Private enterprises Products Services Other operating incomes
70%
62% 98%
97% 97% 96%
60% 100%
52% 90%
48%
50% 80%
(% of revenue)

38% 70%
40%
60%
30% 50%
40%
20%
30%

10% 20%
10% 3% 2% 2% 4%
0% 0%
FY20 FY25 FY22 FY23 FY24 FY25

Source: I-Sec research, Company data Source: I-Sec research, Company data

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Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 47: Segment-wise breakup

HPC (Supercomputing system) Private cloud & HCI

AI systems & enterprise workstations High performance storage (HPS) solutions
Data centre server HCS focussed Software and Service
Spare & Others Network switches

100%

80%

(% of revenue)
60%

40%

20%

0%
FY21 FY22 FY23 FY24 FY25

Source: Company data, I-Sec research

Exhibit 48: Growing share of revenue from top 3 segments- HPC, private cloud
and AI systems
Top-3 segments Growth, %

90% 84% 85% 200%

79%
80% 154%
71%
70% 150%

60% 100%
48% 73% 100%
50% 61%
40%
50%
30%
20% 0%
10% -40%

0% -50%
FY21 FY22 FY23 FY24 FY25

Source: I-Sec research, Company data

Exhibit 49: Segment wise revenue mix: HPC, private cloud & HCI, AI systems and enterprise workstations to remain
key focus segments with AI systems estimated to take the lead
Segment wise revenue mix FY22 FY23 FY24 FY25 FY26E FY27E FY28E
HPC (Supercomputing system) 42% 39% 36% 35% 23% 17% 23%
Private cloud & HCI 19% 33% 37% 35% 24% 18% 23%
AI systems & enterprise workstations 10% 7% 11% 15% 44% 59% 46%
High performance storage (HPS) solutions 9% 7% 5% 2% 1% 1% 1%
Data centre server 10% 6% 5% 3% 2% 1% 1%
HCS focussed Software and Service 3% 2% 2% 4% 2% 1% 1%
Spare & Others 8% 5% 4% 4% 3% 2% 2%
Network switches 42% 39% 36% 35% 1% 1% 1%
Total 19% 33% 37% 35% 23% 17% 23%
Source: I-Sec research, Company data

India | Institutional Equity Research 27

Netweb Technologies India | Initiating Coverage | 15 December 2025

Company financials
Company has consistently grown 1) its top 3 segments - HPC, HCI and AI from 45%
FY20-23 CAGR to 77% FY22-25 CAGR, 2) AI and enterprise workstation segment
(FY25 growth at 112%). Netweb has guided for 35-40% annual ex-strategic orders
revenue growth in the medium term, a long-term EBITDA margin of 14% and PAT
margin of 9-10%. Margins are usually aided by AI deals which have a slightly better
margin profile. By the end of FY26, AI was expected to form 22% of company’s
revenue. However, with the INR 21.8bn strategic order by IndiaAI, we expect AI to form
44% of revenue by FY26E. Company had guided to keep its cash conversion cycle
between 90-100 days. However, it was able to surpass it and bring it down to 73 days
(ex- Q1FY26 where DSOs increased given the jump due to Q1 seasonality).
Stable raw material cost
Netweb’s raw material cost consists of: 1) Cost of GPUs 2) PCB microprocessors (using
surface mount technology), 3) storage and memory modules, 4) switches and
interconnect hardware for building HPC clusters and 5) Chassis and the costs incurred
in bringing these components to manufacturing location. The company uses NVIDA,
AMD and Intel GPU chips for its AI platforms. It has a robust supplier network which
includes Indian and overseas vendors. Cost of raw materials was calculated using the
FIFO method till CY25. Company shifted to weighted average cost method for
inventory valuation on Apr’24. Netweb does not keep an inventory of GPUs. GPUs are
ordered on a need basis as per enterprise clients’ specifications.

Exhibit 50: Netweb’s raw material cost is rangebound Exhibit 51: PAT margin expanded by 90bps from FY22 to
at 74-77% of revenue FY25
Raw material cost, as % of revenue PAT margin (%)
78 10.2
76.8 10.0
77 10.0

76 75.5 9.8
75.2
75 9.6

74
(%)

9.4
(%)

72.9
73 9.2 9.1

72 9.0

71 8.8

70 8.6
FY22 FY23 FY24 FY25 FY22 FY25

Source: I-Sec research, Company data Source: I-Sec research, Company data

India | Institutional Equity Research 28

Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 52: Consistent reduction in other expenses as % Exhibit 53: PAT margin stable at ~9-10% of late; company
of revenue, down 280bps from FY21 to FY25 aims to maintain it at ~9-10% level

Other expenses, % of revenue PAT Margin, %

6.7
7 12
10.3
6 10
4.8
5 4.4 8
3.7 3.9

(%)
4 6
(%)

3 4

2 2

1 0

2QFY25

1QFY26
1QFY24

2QFY24

3QFY24

4QFY24

1QFY25

3QFY25

4QFY25

2QFY26
0
FY21 FY22 FY23 FY24 FY25

Source: I-Sec research, Company data Source: I-Sec research, Company data

Exhibit 54: Revenue/ employee on the rise; headcount Exhibit 55: FCF/ PAT negative
addition not proportionate to revenue growth

Revenue/employee (INR mn) YoY growth, % FCF/PAT

56.1 0.4
30 60.0
0.3
25 50.0
0.2
20 40.0 0.1
30.3
(INR mn)

0.0
(x)

15 30.0
18.7 18.7 -0.1
10 20.0
-0.2
5 10.0
-0.3

0 0.0 -0.4
FY22 FY23 FY24 FY25 FY22 FY23 FY24 FY25

Source: I-Sec research, Company data Source: I-Sec research, Company data

Exhibit 56: Consistent debt reduction Exhibit 57: CCC is stable and within the acceptable range
despite high % of revenue from govt.; company aims to
keep CCC within 80-100 days over the long-term period
Debt CCC imporving
400 140 128
336 120
350
304 120 111
300 100
100 88
250
73
(in INR mn)

80
(days)

200
60
150
40
100

50 20
16 13
0 0
FY22 FY23 FY24 FY25 1QFY25 2QFY25 3QFY25 4QFY25 1QFY26* 2QFY26

Source: I-Sec research, Company data Source: I-Sec research, Company data | * the CCC shot up in Q1 because of beginning
of fiscal increase in receivables

India | Institutional Equity Research 29

Netweb Technologies India | Initiating Coverage | 15 December 2025

Peer comparison and valuation

The company’s guidance of 35-40% CAGR (ex-strategic orders) seems achievable
given its 50%+ YoY revenue growth performance over the last four years. Most of its
peers (EMS) have single-digit margin, while Netweb has delivered ~13-14% EBITDA
margin over the last two years.
Netweb is a company with full-stack offerings across HPC, HCI, AI and enterprise
workstations, data centre and HPS. It designs, manufactures and deploys hardware
and software solutions, making it truly unique with no exact comparable. However, in
the Indian listed space: Syrma, Zen Technologies, Avalon Technologies, Dixon
Technologies are its closest peers in terms of 1) their manufacturing capabilities, 2)
being the beneficiaries of Indian government’s policies – PLI for hardware, 3) having
government department clients and 4) having exposure to sunrise sectors like defence.
Dixon Technologies is the closest peer to Netweb Technologies given: 1) Similar FY26-
28E (ex-strategic orders guidance) revenue and EPS CAGRs, 2) being one of the mere
14 beneficiaries of government’s PLI scheme for IT hardware, 3) having both design
and manufacturing capabilities and 4) specialisation in PCB manufacturing. We value
Netweb at 56x one-year forward P/E, in line with lifetime average one-year forward
P/E of Dixon Technologies. We initiate coverage with a BUY rating on a Dec’26 TP of
INR 4,110.

We expect Netweb’s growth to be driven by three key segments of HPC, private cloud
& HCI and AI systems & enterprise workstations, with AI systems estimated to take the
lead.
We have factored in INR 21.8bn IndiaAI mission mega deals from Q4FY26 to H1FY27
(including the prior INR17.3bn and second deal worth INR4.5bn) and have built in
EBITDA margin compression of 80bps from FY25 to FY27 caused by elevated raw
material and other expenses. We have factored in ex-strategic order growth of ~35-
40% YoY over FY26–29E.

Exhibit 58: Estimate FY25-28E revenue CAGR of 60% Exhibit 59: EBITDA margin to remain rangebound at ~13-
14%; estimate ~70bps EBITDA margin impact from
IndiaAI mega order execution

Revenue (INR mn) Growth, % EBITDA margin, %

50000 104.5 120.0 14.4

14.2
45000 14.2
90.3 100.0
40000 13.9 13.9
80.1 14.0
35000 80.0 13.8
62.7
(INR mn)

30000 58.7
13.6
25000 60.0
13.4
20000 13.2
40.0 13.2 13.1
15000
10000 13.0
20.0
5000 2.5 12.8
0 0.0 12.6
FY22

FY23

FY24

FY25

FY26E

FY28E
FY27E

12.4
FY24 FY25 FY26E FY27E FY28E

Source: I-Sec research, Company data Source: I-Sec research, Company data

India | Institutional Equity Research 30

Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 60: Dixon Technologies trading at ~50x one- Exhibit 61: Netweb trading at ~54x one-year forward P/E
year forward P/E

DIXON IN EQUITY Avg +1SD -1SD NETWEB IN EQUITY Avg +1SD -1SD

120 140

100 120
100
80
80

(x)
60
(x)

60
40 40
20 20

0 0

Apr-25

Sep-25
Sep-24
Oct-24
Dec-24

Jul-25

Oct-25
Dec-25
Jun-24
Aug-24

Jan-25
Mar-25

Jun-25
May-24
Feb-24

Feb-25

Sep-25
Oct-21

Apr-22
Jul-22
Oct-22

Nov-23

Nov-24

Dec-25
Jan-22

Jan-23

Aug-23

Aug-24
May-23

May-24

May-25

Source: I-Sec research, Bloomberg Source: I-Sec research, Company data

Exhibit 62: Peer comparison

Closest listed CMP FY26-28 FY26-28 P/E
Remarks
Indian peers (INR) revenue CAGR EPS CAGR FY26E FY27E FY28E
A leading Indian EMS company that provides
comprehensive design, engineering, and
manufacturing solutions to global and domestic
OEMs. The company emphasises technology-
Syrma 739 30.5% 36.8% 54.7 37.8 29.2 focused engineering and design, with35+ high
speed SMT lines recently establishing a laptop
assembly line in collaboration with MSI under the
government's PLI scheme to boost indigenous
manufacturing.
A leading Indian electronics EMS provider that
Kaynes 4,257 43.9% 71.1% 59.7 41.9 20.4 specialises in end-to-end and Internet of Things
(IoT)-enabled solutions.
The company provides design-focused solutions
and manufacturing services for a wide range of
Dixon electronic products. The company is a major
13,365 29.0% 33.3% 69.1 50.9 38.9
Technologies contract manufacturer (OEM and ODM) for top
global and domestic brands, including Samsung,
Xiaomi, Panasonic, Philips and Google.
A leading Indian defence technology company
that specialises in designing, developing and
manufacturing combat training simulators and
counter-drone solutions. Commands high margin
Zen Technologies 1,378 9.6% 11.4% 43.6 39.6 35.2
from the moat created by patents in defence
technology. Has focussed on strong indigenous
solutions with strong IP and aims to be a leader in
AI led defence-tech.
A leading EMS company, specialising in high-
value, precision-engineered products. The
Avalon company provides end-to-end solutions, from
872 27.0% 41.0% 60.3 40.4 30.4
Technologies printed circuit board (PCB) design and assembly
to complete electronic systems integration,
referred to as "box build" solutions.
Source: I-Sec research, Bloomberg

India | Institutional Equity Research 31

Netweb Technologies India | Initiating Coverage | 15 December 2025

Exhibit 63: Netweb is placed in the middle of peer comparison on FY26-28E

revenue and EPS CAGRs
90.0%
80.0%
70.0% Kaynes

60.0%
Avalon
50.0%
40.0%
Syrma
30.0% Dixon
Netweb
20.0%
10.0% Zen Tech

0.0%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
-10.0%

Source: I-Sec research, Bloomberg | size of the bubble represents FY25 EBITDA margin

Some competitors in unlisted space include: AT&S India (manufactures electronics

using Surface Mount Technology) and Argus systems. E2E Networks is also a peer with
capabilities in GPU infrastructure, AI solutions, home grown hyperscaler space,
however, has no manufacturing capabilities unlike Netweb.

Exhibit 64: Peers’ offerings across top-3 segments

HPC Key Products and Services HCI Key Products and Services HPS Key Products and Services
Netweb Tyrone Camarero DIT400 Series, Netweb HCI cloud (Skylus), Kubyts Netweb ParalleStor Velox, Verta, Collectivo
SDI100 Platform,
series Skylus Cloud for HCI
IBM IBM Power9, storage servers for HPC Vmware VMWare HCI HPE All-flash and hybrid storage, data
workloads, IBM Spectrum Conductor, storage
IBM Spectrum Symphony, servers, storage networking
IBM Spectrum LSF
ATOS BullSequana X Series, Nimbix Nutanix Nutanix Cloud NetApp lNetApp AFF A-Series, NetApp EF-
Supercomputing Suite, ThinkAI, Infrastructure (NCI), Hybrid Series,
Center of Excellence in advanced Multi-cloud Infrastructure NetApp AFF C190, NetApp AFF, All
computing, Mobull SAN Arrays
Lenovo Lenovo Neptune, Rear Door Heat RedHat Redhat Virtualization, Red Dell HCI appliance combines all data
Exchanger (RDHX), Thermal Transfer Hat Gloster centres
Module (TTM), Energy Storage, Redhat Ansible components—storage, compute,
Aware Runtime Software (EAR), networking and management—
ThinkSystem SR675 V3 Rack within
Server, ThinkSystem SD665 V3 High- a single, pre-configured hardware
Density Server, ThinkSystem box
SD665-N V3 High-Density Server,
ThinkSystem SD650 V2 High-
Density Server
HPE HPE Cray EX2500, HPE Cray XD2000 Suse Cloud-native Hitachi Cloud storage for applications,
Hyperconverged hybrid cloud
Infrastructure, infrastructure, hybrid cloud with
Harvester VMware, infrastructure as a service
Source: I-Sec research, Company data

India | Institutional Equity Research 32

Netweb Technologies India | Initiating Coverage | 15 December 2025

Key risks
• 1) Negative FY25 free cashflow, 2) lumpy deal wins, 3) non-annuity nature of the
business - will need constant pipeline replenishment to maintain its current growth
rate.

• Increasing top-5/ 10 client concentration from 41%/ 52% in FY21 to 51%/66% in

FY25.

• Is AI a bubble?

There is an increasing narrative that AI-led capex is not justified. As per an IBM
2023 report, the return on investments on AI projects ranges from 5.9% to 10%
only. Simply AI-fying with LLMs and data centres without context and nuance may
not help in generating the desired returns from the projects. Strong data quality
(required to train LLMs/ SLMs) and AI strategy are key going forward.
However, AI traction has been growing stronger as validated by the following
notable developments:
o For Accenture (Y/E Aug): AI formed 5% of Q4FY25 revenue vs. 3.9% in Q3FY25.

o NVIDIA’s Q3FY26 data centre QoQ growth surged to 24.6% vs. 5.1% in
Q2FY26, solidifying the AI-led capex demand runway.

o NVIDIA has visibility of USD 0.5trn worth of demand for Blackwell and Rubin
revenue till end-CY26.

o Big-tech’s AI capex spending has grown 75% YoY in Q3, as per I/O fund.

Exhibit 65: NVIDIA’s data centre revenue growth is Exhibit 66: Big-tech capex up 75% YoY
accelerating

Data Centre QoQ growth, % Big Tech Capex (USD bn)

60000 30 120 113.4

50000 25 95
100
78.9 77.3
40000 20
(in USD mn)

80
(USD bn)

58.3
30000 15 60
45 47.6
20000 10 35.4 35.5 38.6
40
10000 5 20
0 0
0
Q4FY24

Q1FY25

Q2FY25

Q3FY25

Q4FY25

Q1FY26

Q2FY26

Q3FY26

Q1CY23

Q2CY23

Q3CY23

Q4CY23

Q1CY24

Q2CY24

Q3CY24

Q4CY24

Q1CY25

Q1CY25

Source: Company data, I-Sec research Source: I/O fund, I-Sec research

India | Institutional Equity Research 33

Netweb Technologies India | Initiating Coverage | 15 December 2025

• Impact of DeepSeek

DeepSeek has been able to achieve high computational efficiency with lesser GPUs
while maintaining superior reasoning with its - sparse attention mechanism.
DeepSeek initially created apprehensions that data centre and GPU usage will go
down. DeepSeek's ability to achieve results using less powerful Nvidia H800 chips
(due to restrictions on US exports) and innovative optimisation techniques, such as
the Mixture-of-Experts (MoE) architecture and low-level GPU programming, raised
questions among investors about whether the relentless demand for the most
expensive, high-end GPUs would continue unabated.
However, it led to more enterprises venturing into having more LLMs as 1) the
cost went down and democratisation commenced and 2) low-entry barrier from
cost efficiency of DeepSeek’s models.

Netweb’s AI solutions are compatible with platforms like DeepSeek.

Exhibit 67: DeepSeek (launched in Jan’25) caused a temporary dip in NVIDIA’s

valuations (one-year forward PE)

NVIDIA AMD

70
60
50
40
(x)

30
20
10
0
Feb-23

Feb-24

Feb-25
Sep-23

Apr-25
Oct-22
Dec-22

Nov-23
Dec-23

Jul-24

Oct-24
Nov-24

Jul-25

Oct-25
Dec-25
Mar-23

Jun-23
Aug-23

Mar-24

Aug-24

Jan-25

Aug-25
May-23

May-24

May-25
Source: I-Sec research, Bloomberg

India | Institutional Equity Research 34

Netweb Technologies India | Initiating Coverage | 15 December 2025

Company Overview
Netweb was established in 1999 as a sole proprietorship and launched its Tyrone
brand of products and solutions in 2005. It is the prime beneficiary of AI-led value
creation in the Indian listed space with full stack offerings across: 1) High performance
computing- HPC, 2) hyper converged infrastructure- HCI, 3) AI and enterprise
workstations, 4) data centre servers and 5) high performance storage- HPS. Netweb
went public in Jul’23. It has marquee government and private customers across: Higher
education, research, defence, IT & ITeS and finance. The company has a manufacturing
facility in Faridabad (in Haryana). Promoters currently hold 71% of company’s stake.

Exhibit 68: Timeline of key events

Timeline Key events
2017 Deployment servers as part of surveillance project at 204 locations across 23 states for a PSU.
Deployed ‘PARAM Ambar’, at Indian Space Research Organisation, Government of India, which was India’s 4th fastest supercomputer
2019
at the time of commissioning, (Source: F&S Report).
Received orders for Tyrone HPC Storage, capacity 10500 Terabyte from an R&D organisation of the Ministry of Electronics and
2020 Information Technology, Government of India which is involved in carrying out R&D in information technology and electronics and
associated areas including supercomputing.
2021 Qualified for ‘Production Linked Incentive’ scheme of the Government of India for IT hardware.
2022 Deployed 5G cloud for an international telecommunications service provider.
2022 Launched Container Platform enabling rapid deployment of AI & HPC called Kubyts.
Qualified for ‘Production Linked Incentive’ scheme of the Government of India to promoter telecom and networking products
2022
manufacturing in India.
2022 Deployed Tyrone 2 X Intel DDR4 SDRAM at a Government of India agency.
Deployed AIRAWAT which has been ranked 75th in the world and puts India on top of AI supercomputing nations worldwide and has
2023 been included in the 61st edition of Top 500 Global Supercomputing List released in Jun’23. It is also India's largest and fastest AI
supercomputing system.
Won the INR 17bn landmark order towards strengthening India’s AI compute capabilities under IndiaAI Mission, to be completed by
2025
Q4FY26- FY27.
Source: I-Sec research, Company data

Exhibit 69: Key management personnel

S. No Name Designation Description
Founded Netweb Technologies in 1996, which was acquired by Netweb Technologies India Limited in
Aug’16. He has spearheaded the strategy and business development function of the company since
Sanjay Chairman and 2016. He currently serves as the Vice President of the Manufacturers Association of Information
1
Lodha Managing director Technology (MAIT). He has previously served as Intel’s Board of Advisors (2020 & 2022). He has BA
(Honours) in Economics from the University of Delhi and PG Diploma in Business Management from
the Apeejay School of Marketing, New Delhi.
Hemant Chief operating Associated with Netweb Technologies India Limited since 2003. He has 32 years of experience in the
2
Agarwal officer tech industry and a Bachelor’s degree in Commerce from the University of Calcutta.
Associated with Netweb Technologies India Limited since 2013. He has 15+ years of experience in
building and marketing products and solutions such as supercomputing, AI GPU systems, AI
Hirday Chief Sales and
3 sovereign cloud, private cloud, data centre servers and high-performance storage systems. He is an
Vikram Marketing Officer
expert in solution architecture, market study and product positioning and has Bachelor’s degree in
Technology (Information Technology) from Punjab Technical University, Jalandhar.
Associated with Netweb Technologies India Limited since 2004. He has 21+ years of industry
Chief Research
Mukesh experience and leads the company’s product engineering and research and development functions.
4 and Development
Golla He has Bachelor’s degree in Technology (Computer Science and Engineering) from the Jawaharlal
Officer
Nehru Technological University, Hyderabad.
Associated with Netweb Technologies India Limited since Nov’24. He is a qualified CA with 15+ years
Ankit
Chief Financial of experience in financial planning and analysis, business finance, controllership, taxation and
5 Kumar
Officer strategic project planning and a Bachelor’s degree in Commerce (Accounting and Finance) from the
Singhal
University of Delhi.
Associated with Netweb Technologies India Limited since 10 Jan’23. He has 10+ years of experience
Company
Lohit in secretarial compliances under various corporate laws and listing regulations, and other regulatory
6 secretary and
Chhabra compliances and has Bachelor’s degree in Commerce from the University of Delhi. He has studied
compliance officer
L.L.B, and is an Associate Member of the Institute of Company Secretaries of India (ICSI).
Source: I-Sec research, Company data

India | Institutional Equity Research 35

Netweb Technologies India | Initiating Coverage | 15 December 2025

Annexure
Exascale computing: This refers to the computing ability to perform 10^18
computations (floating point operations) per second.
GPU Accelerator: A GPU accelerator is a computing technique that uses a GPU to
speed up data-intensive tasks, working alongside a computer's CPU.
TPU (Tensor Processing Unit): It is Google’s custom AI accelerator for machine
learning. It is effective for matrix multiplication, which is essential for training neural
networks.
Clusters: Clusters in supercomputers are collections of interconnected individual
computers (nodes) working together as a single, powerful system (High-Performance
Computing - HPC) to solve massive computational problems through parallel
processing.
Container technology: Container technology packages applications with
dependencies into portable units that can run in different computing environment.
Popular containerisation software includes docker and kubernetes.
Kernel: It is a core component of operating system that acts as a bridge between
software and hardware, running crucial resources like CPU memory and peripherals.
Mixture of Experts (MoE) architecture: It is a machine learning technique that
improves model efficiency and scalability by dividing a neural network into several
specialised sub-networks (‘experts’), only a subset of which are activated for any given
input. This approach allows for models with a massive total number of parameters to
operate with the computational cost of a much smaller model.
Sparse attention mechanism: DeepSeek Sparse Attention (DSA) is a mechanism that
makes long-context AI models more efficient by using a two-stage process to reduce
computational complexity. It first uses an ultra-light ‘Lightning Indexer’ to quickly score
the importance of all preceding tokens and select a small subset of the most relevant
ones.
AI Workstation: An AI workstation is a computer system that is specifically designed
for AI-related tasks, such as deep learning, machine learning, natural language
processing, and computer vision. AI workstations typically feature powerful
processors, large amounts of memory, and high-performance GPUs.

Exhibit 70: Shareholding pattern Exhibit 71: Price chart

% Mar‘25 Jun‘25 Sep‘25 5300

Promoters 71.0 71.0 71.0 4300

Institutional investors 16.1 13.8 14.4 3300
(INR)

MFs and others 5.1 4.0 3.3

2300
FIs/Banks 0.0 0.0 0.0
Insurance 0.0 0.0 0.0 1300
FIIs 11.0 9.8 11.1 300
Others 12.9 15.2 14.6
Nov-23

Nov-24

Apr-25
Jun-25
May-24

Feb-25
Jul-23

Jul-24

Aug-25
Mar-24
Sep-23

Dec-25
Jan-24

Sep-24

Dec-24

Oct-25

Source: Bloomberg, I-Sec research Source: Bloomberg, I-Sec research

India | Institutional Equity Research 36

Netweb Technologies India | Initiating Coverage | 15 December 2025

Financial Summary
Exhibit 72: Profit & Loss Exhibit 74: Cashflow statement
(INR mn, year ending March) (INR mn, year ending March)

FY25A FY26E FY27E FY28E FY25A FY26E FY27E FY28E

Net Sales (INR. mn) 11,490 23,498 44,729 45,839 CFO before WC changes 1,659 3,089 5,859 6,387
Operating Expense 9,890 20,407 38,870 39,453 CFO after WC changes 262 1,345 2,728 6,140
EBITDA 1,600 3,091 5,859 6,387 Tax Paid (394) (724) (1,384) (1,545)
EBITDA Margin (%) 13.9 13.2 13.1 13.9 Cashflow from
(132) 621 1,344 4,594
Depreciation & Amortization 113 149 180 225 Operations
EBIT 1,487 2,942 5,679 6,161 Capital Commitments (229) (150) (200) (300)
Interest expenditure 41 151 300 151 Free Cashflow (361) 471 1,144 4,294
Other Non-operating Other investing cashflow 1,345 67 47 50
94 47 47 50
Income Cashflow from Investing
1,116 (83) (153) (250)
Recurring PBT 1,540 2,838 5,426 6,060 Activities
Profit / (Loss) from Dividend and Buyback - - - -
- - - -
Associates Inc (Dec) in Borrowings (24) 4,987 - (4,990)
Less: Taxes 395 724 1,384 1,545 Others - - - -
PAT 1,145 2,115 4,042 4,515 Cash flow from
(180) 4,595 (771) (5,667)
Less: Minority Interest - - - - Financing Activities
Net Income (Reported) 1,145 2,115 4,042 4,515 Chg. in Cash & Bank
804 5,133 420 (1,322)
Extraordinaries (Net) - - - - balance
Recurring Net Income 1,145 2,115 4,042 4,515 Closing cash & balance 1,701 6,834 7,252 5,930

Source Company data, I-Sec research Source Company data, I-Sec research

Exhibit 73: Balance sheet Exhibit 75: Key ratios

(INR mn, year ending March) (Year ending March)

FY25A FY26E FY27E FY28E FY25A FY26E FY27E FY28E

Total Current Assets 8,254 17,259 26,621 25,912 Per Share Data (INR)
of which cash & cash eqv. 1,701 6,832 7,252 5,930 Reported EPS 20.2 37.3 71.4 79.7
Total Current Liabilities & Diluted EPS 20.2 37.3 71.4 79.7
3,534 5,758 11,569 11,935
Provisions Cash EPS 22.2 40.0 74.5 83.7
Net Current Assets 4,720 11,501 15,052 13,976 Dividend per share (DPS) 2.0 3.0 4.0 9.0
Investments - - - - Book Value per share (BV) 93.6 126.4 189.2 259.3
Net Fixed Assets 475 532 552 626 Dividend Payout (%) 12.4 12.0 12.0 12.0
ROU Assets - - - -
Capital Work-in-Progress 56 56 56 56 Growth (%)
Goodwill - - - - Net Sales 58.7 104.5 90.3 2.5
Other assets 119 139 139 139 EBITDA 56.1 93.2 89.5 9.0
Deferred Tax Assets - - - - EPS 50.0 84.7 91.2 11.7
Total Assets 5,400 12,258 15,829 14,828
Liabilities Valuation Ratios (x)
Borrowings 13 5,000 5,000 10 P/E 158.4 85.8 44.9 40.2
Deferred Tax Liability - - - - P/CEPS 144.1 80.1 42.9 38.3
provisions 34 41 49 59 P/BV 34.2 25.3 16.9 12.3
other Liabilities 50 55 60 66 EV / EBITDA 112.1 58.0 30.5 27.4
Minority Interest - - - - P/S 15.8 7.7 4.1 4.0
Equity Share Capital 113 113 113 113 Dividend Yield (%) 0.1 0.1 0.3 0.3
Reserves & Surplus* 5,190 7,049 10,606 14,580
Total Net Worth 5,303 7,162 10,720 14,693 Operating Ratios
Total Liabilities 5,400 12,258 15,829 14,828 EBITDA Margins (%) 13.9 13.2 13.1 13.9
Source Company data, I-Sec research EBIT Margins (%) 12.9 12.5 12.7 13.4
Effective Tax Rate (%) 25.7 25.5 25.5 25.5
Net Profit Margins (%) 10.0 9.0 9.0 9.8

Inventory Turnover Days 53.6 44.1 38.9 49.2

Fixed Asset Turnover (x) 23.9 42.0 74.8 71.1
Receivables Days 87 74 70 92
Payables Days 67 58 56 74
Working Capital Days 72 59 51 63
Net Debt / EBITDA (x) (15.9) (12.4) (12.6) (26.3)

Profitability Ratios
RoCE (%) 23.1 25.1 30.3 30.2
RoIC (%) 31.7 41.5 50.1 52.4
RoNW (%) 24.0 33.9 45.2 35.5
Source Company data, I-Sec research

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Netweb Technologies India | Initiating Coverage | 15 December 2025

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