Netweb Technologies share price: Netweb Technologies shares extended their losing streak on Friday, November 6, falling more than 7% and marking their seventh consecutive session of losses. The stock has shed over 15% during this period, as selling pressure in artificial intelligence (AI) and technology stocks globally, concerns over expensive valuations and a slight moderation in profit margins weighed on investor sentiment.
Netweb Technologies fell as much as 7.6% to an intraday low of ₹3,717 per share. The AI stock is now around 38% below its 52-week high of ₹5,810, touched in August 2026. Its 52-week low stands at ₹2,942.45, recorded in December last year.
The recent correction comes on the back of its weak performance across multiple timeframes. Netweb Technologies shares have declined 10% in one week, 21% in one month, 22% in three months and 14% in six months. However, the stock has gained 13% over the past year.
Why is Netweb Technologies share price falling?
One of the key factors weighing on Netweb Technologies is the global sell-off in artificial intelligence and technology stocks. The company is seen as a domestic infrastructure play on the broader AI investment theme, making its shares sensitive to changes in global sentiment towards the sector.
Institutional investors have increasingly turned cautious on the crowded AI trade amid concerns over higher global borrowing costs and whether large technology companies will generate sufficient returns from their massive investments in AI infrastructure. Any moderation in spending expectations or a shift away from high-growth technology stocks can affect companies linked to the AI ecosystem, including Netweb.
Valuation concerns have added to the pressure. Despite its strong long-term growth prospects, Netweb Technologies trades at a premium trailing price-to-earnings (P/E) multiple of around 58–70 times. Such valuations leave limited room for disappointment and can make the stock vulnerable to sharp corrections when investor expectations change.
The September-quarter performance also raised some concerns around profitability. Net profit margin contracted by 9 basis points year-on-year and declined 8 basis points sequentially to 10.3%.
Netweb Q2 Results
Netweb Technologies reported a sharp rise in its September-quarter earnings, driven by strong demand for AI infrastructure. Consolidated profit after tax (PAT) surged to ₹136.7 crore in Q2 FY27 from ₹31.4 crore in the year-ago quarter, while revenue from operations jumped to ₹1,323.3 crore from ₹303.7 crore.
Sequentially, revenue grew 61.5% from ₹819 crore in Q1, while net profit increased 60.6% from ₹85.3 crore. EBITDA rose 64.4% to ₹197 crore from ₹119.8 crore, with the EBITDA margin improving to 14.9% from 14.6%.
The company reported an order book of ₹2,629 crore as of September 30, 2026, providing visibility for the coming quarters.
Chairman and Managing Director Sanjay Lodha said Q2 was another record quarter, with the highest-ever quarterly revenue and PAT. He added that first-half FY27 PAT reached ₹222 crore, surpassing the full-year FY26 profit of ₹205.8 crore.
Should you buy?
BofA Securities initiated coverage on Netweb Technologies with a ‘Buy’ rating and a price target of ₹5,000 per share, implying an upside potential of 34.5% from current levels. The brokerage sees the company as a key beneficiary of India’s expanding artificial intelligence (AI) infrastructure buildout.
BofA highlighted Netweb’s competitive advantages, including its 15-year partnership with NVIDIA, expertise in supercomputing and long-standing relationships with key government customers.
The brokerage expects the company’s revenue to grow at a compound annual growth rate (CAGR) of 40% between FY26 and FY29. It also anticipates operating leverage benefits as the business scales up, helping Netweb remain competitive on pricing despite a high-inflation environment while maintaining broadly stable profitability.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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