Shares of Netweb Technologies surged 19% over the past week, hitting a 52-week high of Rs 4,426.90 on Monday, as the small-cap IT infrastructure player remained buoyed amid robust order wins and a rapidly expanding AI market in India. The stock has gained over 131% in the last three months and risen 46% in 2025 so far, drawing attention in a broader tech sector grappling with headwinds.
Here are five reasons behind the rally:
1. Robust Order Wins
Netweb’s rally has been propelled by significant contracts secured in recent weeks. On 21 September, the company bagged a Rs 450 crore deal to deploy AI infrastructure using its Tyrone GPU-accelerated systems, to be executed by FY25–26. Earlier this month, it secured a Rs 1,734 crore order to supply Nvidia-powered servers under the IndiaAI Mission. Without disclosing client names, the company said these projects will support the setup of AI infrastructure facilities, with the latest expected to be completed in the first half of FY27. Management expects these orders to further boost revenue and profitability in the current and coming fiscal years.
2. AI and Cloud Growth Tailwinds
Analysts say India’s structural shift towards digital infrastructure is a key growth engine. Rising internet traffic, rapid AI adoption, and policy support for data localisation are driving capacity expansion. Ventura Securities projects India’s AI infrastructure market to reach Rs 8,700 crore by FY28 at a 29.5% CAGR. Private cloud and hyperconverged infrastructure (HCI) are expected to hit Rs 14,100 crore at a 28.5% CAGR, while high-performance computing (HPC) could rise to Rs 2,430 crore, up 8.2%. For Netweb specifically, revenue is expected to grow at a 36.7% CAGR to Rs 2,938 crore by FY28, with AI systems and enterprise workstations projected to log a 50.9% CAGR to Rs 588 crore. Networking switches and high-performance storage could rise over 60% and 14%, respectively.
3. Expansion Initiatives
The company has been expanding its manufacturing and AI capabilities. A new SMT facility was launched in May 2024, and Netweb is developing AI GPU systems in collaboration with Nvidia, Skylus.ai, and through its ‘Make in India’ server initiative.
These moves aim to strengthen the company’s position in the fast-growing AI and cloud infrastructure markets, providing a foundation for sustained growth.
4. Strong Technical Momentum
From a technical perspective, Netweb is firmly in bullish territory. The stock is trading above all eight of its key simple moving averages (SMA), spanning from the 5-day to the 200-day SMA.
Its Relative Strength Index (RSI) stands at 81.8, signalling an overbought condition that could prompt short-term profit-taking, while the Moving Average Convergence Divergence (MACD) remains elevated at 399.4, well above both the centre and signal lines, confirming ongoing upward momentum.
5. Rising Profitability and Order Book Visibility
Netweb’s financial performance underpins investor optimism. As of 30 June 2025, the order book stood at Rs 4,142 crore. Driven by AI demand, the company posted a 100% year-on-year jump in profit after tax to Rs 30.5 crore in Q1 FY26.
The AI segment, which accounted for 29% of revenue in Q1 FY26, up from 7% two years ago, is expected to grow at a 40% CAGR. Analysts say this combination of strong topline visibility and high-margin AI projects is key to sustaining the stock’s rally.
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