A fast-rising technology player in India has become closely intertwined with the global AI wave, particularly the one being led by Nvidia. The company’s stock has repeatedly reacted to Nvidia’s quarterly performance, surging when the U.S. chipmaker beats expectations and softening when global sentiment turns cautious. Both stocks have delivered strong six-month returns, Nvidia around 37 percent and the Indian player about 84 percent, and both have also corrected roughly 12 percent over the past twenty days amid concerns of an AI bubble, stretched valuations, and increasing short positions. This correlation has made investors watch the stock more closely, especially as it continues to benefit from Nvidia’s global leadership in advanced AI chips.
A Closer Look at the Company Behind the AI Surge
Netweb Technologies is one of India’s foremost providers of high-end computing solutions, offering end-to-end design and manufacturing capabilities. Established in 1999 and led by Chairman and Managing Director Mr. Sanjay Lodha, the company has supported global enterprises with a strong customer-first approach.
Its portfolio spans HPC systems, private cloud and hyperconverged infrastructure, AI systems and enterprise workstations, high-performance storage solutions, and data centre servers. Netweb operates a manufacturing unit in the Delhi-NCR region and runs eighteen offices across India. The company debuted on both the NSE and BSE in July 2023. The company has a market capitalization of Rs. 18,878 crore and is currently trading at Rs. 3,332.
How Nvidia Became a Major Catalyst in Netweb’s Growth Story
Netweb’s shares climbed as much as 6 percent on Thursday, November 20, after Nvidia reported much stronger-than-expected quarterly results along with upbeat guidance for the upcoming quarter. Nvidia’s stock rose 5 percent in late U.S. trading, and Netweb mirrored this positive momentum due to its deep strategic partnership with the chip giant.
Netweb collaborates with Nvidia to build high-end AI and computing systems in India, including a significant engagement to manufacture Blackwell-powered AI servers. During its latest earnings call, Netweb emphasised that it is the only company in all of Asia to share this category of strategic partnership with Nvidia, enabling it to design and develop Nvidia based products with priority access.
Management confirmed that they receive adequate allocations and uninterrupted supply support from Nvidia due to heavy R&D investments and their OEM status. The momentum in this relationship is already visible, with Netweb’s AI segment posting 160 percent growth in the September quarter.
The strong correlation between both stocks has continued to catch the market’s attention, especially with Netweb currently trading at a P/E multiple of 140x against an industry average of 34.7x.
What They Do, And Why This Should Be on Investors’ Watchlists
Netweb is India’s leading high-performance computing systems provider, backed by fully integrated design and manufacturing capabilities. As the only HPC original equipment manufacturer in the country, it has delivered some of India’s most advanced supercomputing solutions. This includes three supercomputers that have featured 15 times in the world’s Top 500 list, along with India’s flagship AI supercomputer, entirely designed and implemented by Netweb. The HPC business has grown at a revenue CAGR of 57.90 percent over the past four years, supported by a domestic market expected to expand at a CAGR of 9.3 percent till 2029.
The company is also deeply entrenched in AI systems, addressing the computing needs of HPC workloads, machine learning, deep learning, LLMs, SLMs, and advanced visualisation. Netweb has deployed more than 7,000 accelerator GPU-based AI systems so far. This segment has delivered a remarkable revenue CAGR of 91 percent over the last four years, with AI spending in India projected to grow at a CAGR of 31.5 percent from 2023 to 2027.
Its private cloud and hyperconverged infrastructure offerings combine compute, storage, and networking into a single unified platform. This business has grown at a revenue CAGR of 103.3 percent in the past four years, supported by a market set to expand at 19.9 percent till FY29. The company is also active in data centre servers, high-performance storage, and software and services for high-end computing deployments.
Competing in a High-Barrier, Tech-Forward Industry
Netweb operates in one of the most specialised segments of the technology landscape, requiring deep engineering expertise and long development cycles. It works with premier global partners such as Nvidia, AMD, Intel and Samsung, and has built indigenous technologies across compute, storage, and software to address complex workloads for enterprises, PSUs, defence forces, academia, and research institutions.
The company is among a very small number of OEMs globally capable of designing and manufacturing AI GPU systems and full-stack solutions under an OEM partnership with Nvidia. It aligns fully with the government’s Make in India vision and is also one of the select OEMs to regularly qualify for PLI incentives under the IT Hardware Policy.
Key achievements include a major order to deploy AI infrastructure for India’s foundational LLM model using over 5,000 GPUs in 2025, the deployment of ISRO’s fastest supercomputing system at VSSC Trivandrum, receipt of PLI 2.0 benefits, and the commissioning of Airawat, India’s largest and fastest supercomputer, ranked 75th globally, ahead of its 2023 IPO.
The sector itself demands expertise in system design, middleware, hardware optimisation, handling large computational problem sets, fine-tuning architectures, and delivering consistent customer service. These factors together create high entry barriers and reinforce Netweb’s strategic positioning.
Performance Strength, Customer Depth, and Expanding Pipelines
Netweb has installed more than 600 supercomputing systems, over 60 private cloud and HCI deployments, and above 7,000 GPU-based AI systems. 3 of its supercomputers have been listed 15 times in the world’s Top 500 supercomputer list. The customer base spans leading names such as ISRO, the Ministry of Defence, Zoho, Samsung, Infosys, and Yotta.
Repeat business remains a major strength — revenue from repeat customers stood at 74.7 percent in the first half of FY26, supported by 202 long-term clients with an average association period of over 5.5 years. Customer accretion continues to be healthy with a 9.37 percent CAGR and 61 new clients added in H1FY26 across multiple industries.
Netweb’s pipeline excluding L1 stands at Rs. 42,043 million, with another Rs. 3,480 million under L1 and an organic order book of Rs. 4,939 million. Additionally, a strategic large-ticket order worth Rs. 21,840 million further strengthens visibility. The AI segment remains a major driver, contributing 25.4 percent of revenue in the first half of FY26, up from 14.7 percent a year earlier, marking a 160 percent jump.
Management Outlook and Growth Indicators
Management noted that the company has once again outperformed its stated annual growth guidance of 35 percent to 40 percent CAGR, driven by strategic national-scale AI infrastructure orders that align with India’s broader sovereign AI ambitions. While the AI vertical is scaling rapidly, the HPC and private cloud businesses continue to contribute over 70 percent of revenue and have consistently grown at around 35 percent each over the years. This gives the company confidence that both segments will continue to maintain momentum, while AI expands even faster.
The gestation cycle for orders ranges from 6 months to 18 months, supporting predictable revenue conversion and sustained growth. Leadership reaffirmed confidence in maintaining organic growth of 30 percent to 35 percent, supported by strong order inflows and a robust funnel.
Profitability guidance also remains steady with an EBITDA margin forecast of 13 percent to 14 percent and PAT margins expected at 10 percent to 10.5 percent as the company transitions to larger, scalable projects. Management highlighted its strategic OEM relationship with Nvidia, noting that fewer than 10 OEMs globally enjoy similar access. This ensures priority allocations even during periods of acute GPU shortages, backed by sustained investments in R&D and strong supply-chain alignment. The company also aims to gradually scale export revenue to about 5 percent to 6 percent annually, compared to nearly zero just two years ago.
Written by Manan Gangwar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
