Netweb Technologies India Ltd Management Discussions

Management Discussion and Analysis

Industry Overview

Netweb Technologies is one of Indias leading domestic original equipment manufacturers (OEMs) of high-end computing solutions (HCS), with over 25 years of experience in the industry. The Company has capabilities across the design, development, manufacturing, and deployment of high-end computing systems, covering the full HCS value chain. Netweb Technologies combines in-house designed and manufactured hardware with proprietary software to deliver integrated computing solutions. The Company develops computing, storage and software technologies to meet the growing

computational needs of enterprises, academic institutions, public sector undertakings (PSUs), defence organisations and research institutions. Netweb Technologies is among Indias leading manufacturers of supercomputing systems and has designed, developed and deployed several high-performance systems of national importance. The Company has also developed some of Indias most powerful supercomputing systems, along with advanced artificial intelligence (Al) systems, strengthening its position in the growing high- performance computing and Al infrastructure market.

The India Opportunity at a Glance

The Companys core addressable markets are expected to expand materially over the coming half-decade, with Al-led segments compounding fastest off a rapidly rising base.

India Addressable Market Size

( Rs. in billion)

Data-centre capacity, a key leading indicator of downstream demand for servers, storage, and networking, is scaling rapidly in gigawatt (GW) terms:

Economic and Digital-Infrastructure Backdrop

Indias nominal GDP atcurrent prices is projected to increase from approximately US$3.9 trillion in CY2025 to US$6.2 trillion by CY2030, a compound annual growth rate (CAGR) of 9.5%, while GDP per capita is expected to rise from approximately US$2.7 thousand to US$4.1 thousand over the same period, at a CAGR of 8.6%. These growth rates are higher than those of major economies including the United States, China, Germany, Japan, and the United Kingdom, reflecting relatively faster economic expansion and income growth. Indias faster growth, rising enterprise technology spending, and expanding digital consumption are together creating a larger base of compute-heavy workloads, moving demand beyond conventional IT infrastructure towards HPC, private cloud, Al infrastructure, and data-centre systems.

Investment activity remains robust. Gross fixed capital formation rose by 7.8% in FY2026, while Union Government capital expenditure has scaled from Rs.3.4 trillion in FY2020 to a budgeted Rs.12.2 trillion in FY2027, with effective capital expenditure estimated at Rs.17.2 trillion in FY2027, supporting broad-based capacity creation across physical, digital, and technology infrastructure.

Indias digital base has scaled from 743.2 million internet subscribers and 687.4 million broadband subscribers as of FY2020 to 1,092.8 million and 1,065.9 million, respectively, as of FY2026. Wireless data usage increased from 22,854.1 petabytes in FY2020 to 77,953.0 petabytes in FY2026 and average usage rose from 11.0 GB to 26.7 GB per subscriber per month. Fligh-speed connectivity is intensifying data workloads: by FY2026, fixed wireless access subscribers reached 16.6 million and 5G accounted for 42.8% of total wireless data usage. Together, these trends are expanding the need for backend data processing, cloud storage, analytics, and data-centre infrastructure.

Indias digital public infrastructure (DPI) is converting digital adoption into recurring, regulated workloads. Unified Payments Interface (UPI) annual transaction volume increased from 18.9 billion in CY2020 to 208.8 billion in CY2025, with transaction value expanding from Rs.33.9 trillion to Rs.298.6 trillion over the same period. Aadhaar scaled from 40.1 billion authentications and 8.0 billion electronic Know Your Customer (eKYC) transactions in FY2020 to 180.2 billion authentications and 25.1 billion eKYC transactions, while the Government e-Marketplace (GeM) crossed Rs.5.0 trillion in gross merchandise value in FY2026. Each transaction adds backend workloads across authentication, routing, reconciliation, fraud monitoring, and real-time risk checks, driving demand for low-latency compute, high-availability storage, private cloud/HCI and resilient, India-resident datacentre systems.

Underpinning this is a decisive sovereign-compute push. The IndiaAl Mission carries an allocation of approximately Rs.103,000 million over FY2025-29, including compute capacity, an innovation centre, a datasets platform, skilling, start-up financing, and safe and trusted Al. Against an initial target of over 10,000 graphics processing units (GPUs), Indias shared Al compute capacity has scaled beyond 38,000 GPUs, with a further 20,000 GPUs planned, taking the base towards approximately 58,000 GPUs. Indias Al and digital workload growth require domestic infrastructure depth rather than cloud access alone, favouring players with integrated capabilities across HPC, Al systems, private cloud/HCI, storage, and data-centre deployment.

Global and Indian Artificial Intelligence (Al) Market

Global Al spending increased from US$176.9 billion in CY2023 to US$294.4 billion in CY2025, a CAGR of 29.0% and is projected to reach US$987.5 billion by CY2030 at a CAGR of 27.4%. The sustained growth indicates that Al has become a core technology investment across enterprises, governments, cloud providers, and digital platforms, rather than remaining limited to experimentation.

From Model Training to Recurring Inference

Al infrastructure demand is expanding beyond periodic model training towards inference - the recurring use of trained models across chatbots, copilots and Al agents - making infrastructure demand directly linked to usage volumes. The scale of this shift is visible in token processing volumes, which for one leading platform increased from 9.7 trillion tokens in May 2024 to over 3,200 trillion tokens in May 2026. At the same time, the cost of generating a GPT-3.5-equivalent token declined by nearly 280 times between late 2022 and late 2024. As token costs fall and usage rises, compute demand is becoming continuous rather than project-based and investment decisions are increasingly influenced by metrics such as cost per inference, infrastructure utilisation, energy efficiency and total cost of ownership.

This is reshaping data-centre design from general-purpose capacity towards high-density, Al-ready environments. Processing large volumes of tokens efficiently requires more than GPUs alone - high-speed storage, low-latency networking, power and advanced cooling are equally critical, since constraints in any of these can throttle overall system performance. Consequently, Al infrastructure is evolving from standalone GPU servers into integrated "Al factories" that combine compute, storage, networking, software and physical infrastructure into a unified platform, strengthening demand for full-stack providers capable of integrating and deploying production-ready systems at scale. The evolution from predictive Al to generative and, increasingly, agentic Al - extending from response generation to multi-step planning and execution - is further widening enterprise compute requirements.

Indian Al Market and Sub-Segments

The Indian Al market increased from Rs.180.9 billion in FY2024 to Rs.322.7 billion in FY2026 at a CAGR of 33.6% and is projected to reach ^1,142.9 billion by FY2030, growing at a CAGR of 37.2%. This demand is underpinned by Indias planned deployment of 6,50,000 to 7,00,000 GPUs by CY2030, the development of sovereign multilingual foundation models, the Governments Rs.1,03,000 million IndiaAl Mission outlay, and the shift of Al workloads from pilots to production- scale deployments across regulated sectors. Indias Al infrastructure market is projected to grow from Rs.115.4 billion in FY2026 to Rs.282.9 billion by FY2030 at a CAGR of 25.1%, while the Indian Al software market is expected to expand from Rs.96.8 billion to Rs.342.9 billion over the same period, at a CAGR of 37.2%. Indias Al services market, though smaller today at Rs.110.5 billion in FY2026, is projected to accelerate to Rs.517.1 billion by FY2030 (CAGR of 47.1%) as enterprises move from Al experimentation to end-to-end transformation, integration, and managed Al services.

Indias Al ecosystem is expanding across the value chain. IndiaAI-supported entities have developed 20 foundational Al models, of which five have been released in CY2026, while the integration of government and sectoral datasets into the AIKosha platform is broadening the data foundation for domestic Al. The target of supporting approximately 5,000 Global Capability Centres (GCCs) by CY2030 is further increasing demand for enterprise Al applications, private Al clusters, and production-grade deployment environments. Alongside central programmes, data-localisation requirements and Al-focused state data-centre policies are expected to create an additional layer of sovereign Al- infrastructure demand over the next five years.

A parallel opportunity is emerging in physical Al—the application of Al to systems that perceive, reason, and act in the physical world, including robotics, autonomous machines and embodied intelligence across defence, manufacturing, logistics, agriculture and healthcare. The Indian physical Al market is projected to grow from Rs.12.4 billion in FY2026 to Rs.32.3 billion by FY2030 (CAGR of 27.0%). Physical Al requires large-scale training and simulation infrastructure in the data centre, high-performance edge inference near the machine and a software layer connecting the two - strengthening demand for integrated compute, storage, and low-latency networking platforms.

Key demand tailwinds: On the investment side, an unprecedented Al-infrastructure build-out anchored by the IndiaAl Mission, with Al-cloud and Neocloud players committing billions towards GPU capacity; on the demand side, the evolution from predictive Al to generative and, increasingly, agentic Al and the migration of enterprise Al from pilots to production, driving demand for integrated Al factories.

Key end-user industries: IT 8< IT-enabled services (ITeS), Government 8i Defence, telecommunications, Banking, Financial Services and Insurance (BFSI), and media.

Source: Industry report (1 Lattice); Company research.

High-Performance Computing (HPC) Market

HPC leverages parallel processing, high-speed interconnects, and scalable architectures to solve computationally intensive problems. It has become foundational infrastructure across research, enterprise, and government sectors, including Al, data analytics, engineering design, life sciences, and climate modelling. The Indian FIPC market grew from Rs.58.0 billion in FY2024 to Rs.71.4 billion in FY2026 at a CAGR of 11.0% and is expected to reach Rs.111.9 billion by FY2030, growing at a CAGR of 11.9%. Adoption is broadening from its academic and government-research core into IT 8< ITeS, telecommunications, BFSI, manufacturing, automotive, aerospace, energy, and life sciences, driven by computer- aided engineering, computational fluid dynamics, digital twins, molecular modelling, risk analytics, and large-scale Al workloads.

National Supercomputing Mission and NSM 2.0

Indias supercomputing programme, institutionalised through the National Supercomputing Mission (NSM) launched in 2015, has commissioned over35 supercomputers across premier academic and R&D institutions under its first phase, creating a sustained, policy-backed procurement pipeline. The second phase (NSM 2.0) marks a step-change in ambition—pre-exascale systems by FY2028 and exascale- class facilities thereafter, built on a cohesive architecture of indigenously developed processors, HPC servers, interconnects, and system software, and a converged national computing stack that unifies HPC, Al, and quantum computing. Critically, this shift from a "buy" to a "build and design in India" approach is establishing indigenous design, domestic manufacturing, and energy efficiency as key qualification criteria for future procurement, reducing reliance on imports and strengthening self-reliance across the HPC value chain.

Quantum Computing and Hybrid Quantum- Classical HPC

Indias National Quantum Mission (FY2024-31), with an outlay of approximately 760 billion, targets intermediate- scale quantum computers scalingfrom 20-50 physical qubits to 50-1,000 physical qubits over eight years, supported by thematic hubs, a growing start-up ecosystem, and state-level quantum technology parks. Indias quantum computing market is projected to expand from 7119.8 billion in FY2026 to 7315.0 billion by FY2030 at a CAGR of 27.3%. This transition creates direct demand for classical HPC: in the current era of small, error-prone quantum processors, the design, validation, and benchmarking of quantum hardware and algorithms depend heavily on quantum simulation and emulation performed on GPU-accelerated classical supercomputers, while the emerging hybrid quantum- classical deployment model integrates quantum processors alongside conventional supercomputing data centres. Every stage of Indias quantum roadmap will therefore require the dense accelerated computing systems, system software, and data-centre integration capabilities that established HPC OEMs provide.

Notwithstanding these tailwinds, the market continues to face structural challenges, including high capital and operating costs, dependence on imported processors, and advanced semiconductor components, a shortage of skilled HPC and Al talent, power and cooling constraints, and limited enterprise adoption beyond research institutions.

Key demand tailwinds: NSM 2.0s shift towards indigenous design and domestic manufacturing; the convergence of HPC and Al as supercomputing architectures increasingly underpin large-scale Al training; the emergence of hybrid quantum-classical computing; and broadening adoption across enterprise, academic, and sector-specific workloads.

Key end-user industries: IT & ITeS, Government & Defence, and telecommunications are the primary users, with applications spanning disaster management and weather forecasting, life sciences (genome sequencing and drug discovery), manufacturing (computer-aided engineering and computational fluid dynamics), natural resources (seismic imaging and reservoir modelling), BFSI (fraud detection and risk analytics), oil & gas, and space & defence.

Source: Industry report (1 Lattice); Press Information Bureau.

Indian Private Cloud and Hyperconverged Infrastructure (HCI) Market

A private cloud is a cloud computing environment dedicated to a single organisation, offering scalability, virtualisation, and self-service, with greater control over security, data, and infrastructure, whether deployed on-premises or hosted. HCI is a software-defined architecture that integrates compute, storage, networking, and virtualisation into a single, centrally managed platform, simplifying management and enabling scalability by adding nodes. The Indian private cloud and HCI market expanded from 7314.1 billion in FY2024 to 7456.7 billion in FY2026 at a CAGR of 20.6% and is projected to reach 7919.1 billion by FY2030, growing at 19.1%.

Demand is being driven by data localisation and compliance mandates, migration away from legacy virtualisation platforms—with approximately 35% of enterprise workloads expected to migrate to alternative platforms by CY2028— increasing hybrid-cloud adoption, expansion of data-centre capacity, and the growing need for edge computing across distributed operations. The IT & ITeS segment is expected to remain the largest application segment, expanding from 771.2 billion in FY2024 to 7183.8 billion by FY2030, while Government 8i Defence is projected to grow from 745.0 billion to 7147.0 billion and BFSI from 721.9 billion to 7101.1 billion over the same period. Adoption is supported by a stringent data-sovereignty and cybersecurity framework, including the Digital Personal Data Protection Act, CERT- In directions, and sector-specific regulations from the RBI, Insurance Regulatory and Development Authority of India (IRDAI) and Securities and Exchange Board of India (SEBI), alongside the Governments MeghRaj (GI Cloud) policy.

Key adoption barriers persist, including high upfront capital requirements, competition from hyperscale public cloud providers, the complexity of integrating with legacy IT environments, a shortage of skilled cloud and cybersecurity professionals and the need for continuous technology refresh to support Al, GPU-intensive, and edge workloads.

Key demand tailwinds: Data-localisation and compliance mandates; migration away from legacy virtualisation platforms (approximately 35% of workloads expected to migrate by CY2028); the hybrid-over-public-cloud shift; Already data-centre expansion; and the growing need for edge computing across distributed operations.

Key end-user industries: IT & ITeS (the largest segment), Government & Defence, BFSI, telecommunications, media, and oil & gas.

Indian High-Performance Storage (HPS) Market

HPS comprises storage systems designed to process large datasets at high speed with low latency and consistent availability, typically using Non-Volatile Memory Express (NVMe)-based storage, parallel file systems, and scalable object storage. It is critical for workloads where conventional storage architectures would otherwise restrict overall system performance. The Indian HPS market increased from Rs.72.5 billion in FY2024 to Rs.79.9 billion in FY2026, a CAGR of 5.0% and is projected to reach Rs.99.9 billion by FY2030, growing at 5.7%. BFSI is expected to remain the largest application segment ( Rs.21.7 billion in FY2024, rising to Rs.27.5 billion by FY2030), followed by Government & Defence, IT & ITeS, and telecommunications.

The opportunity is expanding beyond traditional storage replacement: rising GPU density is increasing demand for parallel file systems, NVMe, and scale-out object storage, while new data-centre capacity creates greenfield demand and public procurement and manufacturing incentives are enabling domestic providers to develop locally designed platforms and substitute imports. Key challenges include high deployment costs, dependence on imported processors, memory, and storage components, and the specialist skills and continuous R&D required to build and upgrade these platforms.

Key demand tailwinds: Expanding Al and analytics workloads; rising GPU density increasing demand for parallel file systems, NVMe, and scale-out object storage; new datacentre capacity creating greenfield demand; data-localisation and retention requirements; and public procurement and manufacturing incentives enabling import substitution.

Key end-user industries: BFSI (the largest segment), Government & Defence, IT & ITeS, telecommunications, media, and oil & gas.

Data-Centre Build-Out

India is in the midst of a structural, multi-year data-centre build-out. Indias data-centre demand is projected to increase from approximately 1.7 GW in FY2026 to 8.0-10.0 GW by FY2030 at a CAGR of 47.3-55.7%, driven by rising data consumption, an expanding digital user base, increasing Al adoption, and data-localisation requirements. Within this, Al- specific data-centre capacity is expected to expand from 0.24 GW in FY2026 to 4.0-5.5 GW by FY2030, while Al data-centre capital expenditure is projected to rise from ^85.8 billion in FY2026 to Rs.1,832-2,710 billion by FY2030. As of CY2025, India hosts approximately 271 data centres, with Mumbai, Hyderabad, and Chennai emerging as the leading hubs.

Every megawatt of new capacity translates directly into demand for the IT infrastructure housed within it—servers, storage, networking, and cloud software—which constitutes the substantial majority of a data centres lifetime capital expenditure and is refreshed through regular technology cycles. The policy environment strongly favours this buildout, including infrastructure status for data centres, longdated fiscal incentives (such as the FY2027 Union Budget tax holiday up to FY2047 for foreign companies providing global cloud services through Indian data centres), and state-level policies offering land, power, and stamp-duty incentives. In parallel, data-sovereignty considerations are driving enterprises and government bodies towards sovereign private and hybrid cloud architectures hosted within India.

Key demand tailwinds: Hyperscaler and colocation investment commitments; the shift of Al training and inference workloads to India; data-localisation requirements; rapid expansion of the digital economy; and strong policy support through infrastructure status, fiscal incentives, and state data-centre policies.

Key end-user industries: BFSI, media & entertainment, retail & e-commerce, and other data-intensive industries.

Policy and Regulatory Tailwinds

Indias policy framework is deliberately localising the compute ecosystem and creating a supportive environment for domestic HCS providers:

• IndiaAl Mission: An allocation of approximately Rs.1,03,000 million over FY2025-29 to expand domestic Al compute, foundational models, datasets, and applications, with implementation still in its early stages.

• Make in India and NSM 2.0: A sovereign-compute push shifting national supercomputing procurement from "buy" to "build and design in India", making indigenous design and domestic manufacturing key procurement criteria.

• Production-Linked Incentive (PLI) schemes: PLI Scheme 2.0 for IT Hardware, with an outlay of Rs.17.0 billion and incentives approved for 27 IT hardware manufacturers, incentivises domestic manufacturing of servers and related hardware, complemented by the PLI scheme for Telecom & Networking Products.

? Data-protection and cybersecurity regime: the Digital Personal Data Protection Act, 2023 and the DPDP Rules, 2025, together with CERT-ln log-retention directions and sectoral cybersecurity frameworks, are widening demand for secure, compliant and India-resident digital infrastructure.

• Investment and fiscal incentives: 100% foreign direct investment under the automatic route in electronics system design and manufacturing and the FY2027 Union Budget tax holiday up to FY2047 for foreign companies providingglobal cloud services through Indian data centres.

Barriers to Entry and Early-Mover Advantage

The HCS industry is characterised by significant barriers to entry. The pace of technological advancement—particularly in Al and GPU-accelerated computing, where architecture generations evolve rapidly and large-scale sovereign Al deployments demand cutting-edge capabilities— necessitates sustained innovation, improvement, and customisation of solutions. The technical skill set and deep domain expertise required to design dense GPU architectures, implement liquid-cooling systems for large- scaleAl deployments, and develop Al-optimised middleware are difficult to replicate and require years of accumulated experience. These factors, combined with the limited number of domestic OEMs with fully integrated design and manufacturing capabilities across the HCS space, underpin a favourable competitive environmentforestablished, early- mover providers.

The industry is also subject to periodic shortages of critical components, particularly GPUs and advanced Al accelerators, driven by surging global demand and capacity constraints at semiconductor fabrication facilities. India continues to rely heavily on imported processors, GPUs and advanced semiconductor components, where supply-chain disruptions, export controls, and limited domestic manufacturing can delay deployments and increase procurement costs.

Company Overview

Netweb Technologies Limited ("Netweb Technologies", "Netweb", "the Company") is one of Indias leading Indian-origin, owned, and controlled original equipment manufacturers (OEMs) of High-End Computing Solutions (HCS), with fully integrated capabilities across the design, development, manufacturing, and deployment of HCS. The Company is among the few players in India offering an end- to-end, full-stack portfolio comprising in-house designed and manufactured hardware and proprietary software spanning the entire HCS value chain, from system design to deployment. It is one of Indias leading domestic providers of full-stack high-end computing systems and among the countrys largest manufacturers of supercomputing systems. Netweb develops indigenous compute, storage, and software technologies to deliver HCS that address the rising computational requirements of enterprises, academia, public sector undertakings (PSUs), defence establishments and research institutions. With over 25 years of experience, the Company has established itself as one of the leading players in Indias HCS industry, having built several of the worlds fastest supercomputing systems of national importance. The Company has designed, developed, and deployed some of Indias most powerful supercomputing systems and has developed one of the worlds most powerful latest-generation Al systems. It provides end-to-end full- stack solutions with in-house designed and manufactured hardware and proprietary software. The Company follows a customer-centric approach and has established a strong presence by delivering advanced computing solutions to customers in India and across global markets. The Company was listed on the NSE and BSE in July 2023.

Netweb is among the leading OEMs for High-Performance Computing (HPC) installations in India. Since its inception, it has deployed:

• 600+supercomputing systems

• 60+ private cloud and hyperconverged infrastructure (HCI) installations

• 10,000+ accelerator/GPU-based Al systems and enterprise workstations

• 3 Supercomputers listed 17 times in the worlds top 500 supercomputers

Netweb Technologies operates in a rapidly evolving technology industry with high barriers to entry. The Company needs to continuously innovate across hardware, middleware, and application layers to keep pace with technological advancements, while also optimising applications and fine-tuning system architectures. The Company also requires specialised expertise in system design, hardware, and middleware integration, experience handling complex workloads, and a highly skilled technical workforce. The Company must further maintain a strong track record in delivering reliable customer service, making it challenging for new players to enter the industry.

The Company serves customers across a diverse range of application industries, including Government & Defence, higher education and research institutions, financial services and capital markets, information technology and information technology enabled services, oil & gas, and enterprises.

It has developed long-standing relationships with a diversified base of customers. As a full-stack HCS provider, it enables customers to source their computing infrastructure from a single provider without reliance on multiple vendors. This reflects Netwebs ability to deploy and support high- performance computing, cloud, and data centre infrastructure solutions for critical workloads across government, research, enterprise, and digital infrastructure environments.

Netweb Technologies has established a strong position as Indias only HPC OEM with three supercomputers that have cumulatively featured 17 times in the worlds top 500 supercomputers. AIRAWAT is Indias flagship Al supercomputer, designed and deployed by us; it is Indias largest and fastest supercomputer and ranked 75^th globally in 2023. Over the last 25 years, the Company has deployed several landmark supercomputing systems, including KABRU at the Institute of Mathematical Sciences, Chennai, ranked the 500^th most powerful supercomputer in the world in 2004; PARAM YUVA II at the Centre for Development of Advanced Computing, Pune, one of the worlds most powerful supercomputers in 2013; and PARAM AMBAR at ISRO, Indias fourth-fastest supercomputer in 2019. Netweb has also deployed a marquee supercomputing system for ISRO at VSSC, Trivandrum. Indias emergence as a credible global hub for high-technology computing is expected to benefit the nation for decades to come.

Netweb has also deployed additional systems for organisations of national importance, including the marquee supercomputing system for ISRO at the Vikram Sarabhai Space Centre, Trivandrum and has supplied and commissioned over 800 indigenous, cyber-secure high-

Product Portfolio

Netwebs products and solutions are offered under the "Tyrone" brand and span the complete spectrum of high-end computing infrastructure requirements. Over the years, the Company has expanded its portfolio from Supercomputing systems and data centre servers to include private cloud and hyperconverged infrastructure, Al systems, high- performance storage solutions, and proprietary software platforms. In addition to its hardware offerings, Netweb has developed a suite of software, middleware, and orchestration tools that enhance deployment, management, workload optimisation, and data management capabilities across computing environments.

end compute systems to the Indian Computer Emergency Response Team for its nationwide cyber-security incident- response measures. The Company has also deployed servers for a surveillance project spanning 23 states and 204 locations for a PSU in 2017. The Company has also received an order to deploy Al infrastructure comprising over 5,000 GPUs for Indias foundational large language model. These developments are supported by the development of a sovereign Al ecosystem in India, including the Government of Indias Rs.1,03,000 million outlay for the IndiaAl Mission.

Source: 1 Lattice Report

In addition to its core infrastructure offerings, Netweb provides comprehensive managed services through annual maintenance and support contracts, ensuring optimal performance and reliability of customer deployments throughout their lifecycle. Its capabilities extend to infrastructure monitoring and private cloud management, enabling integration of its solutions within customers environments and business processes. Netweb believes that this end-to-end engagement model strengthens customer relationships, enhances recurring revenue visibility, and increases customer stickiness through deeper operational integration.

A Snapshot of Netwebs HCS Offerings HPC Systems

• Supercomputers and HPC clusters

• Research, engineering simulations, and weather modelling

• High-speed parallel computing for data-intensive applications

Al Systems

• GPU-based Al systems

• Al training, inference, and Large Language Models (LLMs)

• Powered by Skylus.ai and Tyrone KUBYTS software platforms

Servers & Storage Solutions

• Enterprise servers and high-performance storage

• High-capacity, high-speed data management

• Designed for mission-critical business applications

Private Cloud & HCI

• Integrated compute, storage, and networking

• Private and hybrid cloud deployments

• Enhanced scalability, flexibility, and data control

Data Centre Solutions

• Complete data centre ecosystem

• Servers, storage, networking, and backup solutions

• Optimised for Al, HPC, and enterprise workloads

Managed & Support Services

• Deployment and system integration

• Monitoring, optimisation, and maintenance

• Comprehensive lifecycle support

Revenue by Business Segment

	FY2026 { Rs. million)	FY2025 ( Rs. million)	Y-O-Y Change (%)
High-Performance Computing (HPC)	5,307.5	4,054.9	30.9%
Private Cloud & HCI	5,169.7	4,026.5	28.4%
Al Systems	9,477.9	1,693.8	459.6%
HPS Solutions	327.7	274.7	19.3%
Data Centre Servers	320.8	372.8	(14.0%)
Software Services and Spare & Others	1,232.0	1,008.1	22.2%
Total	21,835.6	11,430.9	91.0%

Netweb Technologies reported strong growth across most of its offerings in FY2026, with total revenue increasing 91.0% to ^21,835.6 million from Rs.11,430.9 million in FY2025.AI Systems emerged as the key growth driver, with revenue rising 459.6% to Rs.9,477.9 million from Rs.1,693.8 million, increasing its contribution to revenue from 14.8% to 43.4%. Revenue from High-Performance Computing (Supercomputing/HPC) systems grew 30.9% to Rs.5,307.5 million, while Private Cloud & HCI revenue increased 28.4% to Rs.5,169.7 million. HPS solutions and Software services, spares and others also grew 19.3% and 22.2%, respectively. In contrast, revenue from Data Centre Servers declined 14.0% to Rs.320.8 million. The sharp increase in Al Systems revenue shifted the Companys revenue mix, with Al Systems becoming its largest revenue contributor in FY2026.

During FY2026, the Company further strengthened its high-end computing portfolio by expanding its capabilities across Al systems, supercomputing, private cloud and data centre infrastructure. Enabled by indigenous R&D, new product launches and expanded manufacturing capacity, the Company continued to address the growing demand for sovereign Al infrastructure and high-performance computing solutions in India.

Key Developments During the Year

• Expanded Al systems portfolio: Strengthened offerings across Al systems, supercomputing, private cloud, and data centre infrastructure, enabled by unified Al orchestration and advanced storage platforms for enterprise, government, and telecom applications.

? Focus on sovereign Al infrastructure: Continued to address the increasing demand for secure, on-premises Al infrastructure and High-Performance Computing systems, helping reduce Indias dependence on imported Al and networking solutions.

? Launch of Skylus.ai: Introduced Skylus.ai, a unified Al orchestration platform that enables enterprises and institutions to rapidly deploy GPU-based Al infrastructure, including sovereign Al clouds for modern Al workloads.

? Launch of new Al computing platforms: On February 18, 2026, the Company launched Tyrone Spark, an Al edge supercomputing system based on NVIDIA DGX Spark, and Tyrone CAMARERO GB200, based on the NVIDIA GB200 NVL4 platform and designed to support multi-trillion-parameter Al models and scale workloads from edge deployments to core data centres. Both platforms cater to domestic and international markets, with the initial launch in India.

• Advanced storage platform: Introduced Tyrone ParallelStor VELOX, a unified storage platform that eliminates data bottlenecks in Al, HPC, and private cloud environments through a multi-tier storage architecture.

• Next-generation server portfolio: Expanded the "Make in India" server portfolio with Intel Emerald Rapids- and AMD Turin-based high-end computing servers.

? Strong technology partnership: Entered into a collaboration with Vertiv to jointly design and deploy advanced liquid-cooled Al infrastructure for large-scale Al deployments.

Strategic collaborations: The Company continued to align its growth strategy with national initiatives focused on domestic manufacturing, artificial intelligence, and advanced computing. It remained eligible under the PLI Scheme 2.0 for IT Hardware, including server manufacturing, as well as the PLI Scheme for Telecom and Networking Products Manufacturing. During the year, the Company continued its strategic collaborations with global technology leaders, including NVIDIA, Intel, AMD, Samsung, and Vertiv, supporting the co-development of advanced computing solutions. Its in-house engineering capabilities also enabled the design and manufacture of customised systems tailored to specific customer requirements.

Key Business Strengths

Diversified Product Portfolio

Netweb Technologies has a diversified product portfolio, including HPC, Al Systems, and Private Cloud & HCI solutions, enabled by servers, storage, networking, and software offerings. Its broad portfolio enables the Company to address varied customer requirements across Al, enterprise cloud, and supercomputing while reducing dependence on any single segment. The Companys end-to-end, customisable hardware-software capabilities, combined with its position as an Indian OEM manufacturing IT hardware at scale and its qualification under the Government of Indias PLI Schemes, strengthen its positioning in advanced computing infrastructure.

Leadership in Al Infrastructure

The Company has built a strong position in Al infrastructure, aided by rapid growth in GPU-based Al systems. These systems are designed for advanced workloads such as machine learning and generative Al. With strong in- house capabilities, Netweb Technologies can deliver high- performance, Al-ready infrastructure that supports both enterprise demand and Indias growing focus on sovereign Al systems.

Strong Order Book and Revenue Visibility

Netweb Technologies has strong revenue visibility enabled by a healthy order book and pipeline. At the start of FY2027, the Company had an order book of Rs.20,976.0 million and L1 orders of Rs.3,278 million. Additionally, the pipeline stood at

Rs.44,315 million. This provides strong support for revenue growth and execution over the medium term.

Robust Manufacturing and R&D Capabilities

The Company has integrated manufacturing and R&D capabilities covering design, engineering, production, testing, and system integration. Netweb Technologies operates a state-of-the-art manufacturing facility in Delhi- NCR and has a network of 18 offices across India, enabling it to serve customers efficiently. These capabilities support its HPC, Al, storage, and networking solutions and allow the Company to develop customised systems in-house. During the year, it commissioned a 15,000 sq. ft. facility to produce and test dense GPU-based Al systems and installed advanced Surface Mount Technology (SMT) lines for next-generation Al server manufacturing. The expanded capabilities also support high-density and liquid-cooled GPU systems, while helping the Company maintain quality and respond quickly to customer requirements.

The Companys R&D centres in Faridabad, Gurugram, and Hyderabad continued to work on indigenous computing, storage, and software platforms. The Company maintained a strong order pipeline across HPC, Private Cloud, and Al Systems and continued to develop Al GPU systems based on NVIDIAS Blackwell platform under its OEM partnership.

Strategic Partnerships and Ecosystem Integration

Netweb Technologies works closely with global technology partners and leading Indian IT service providers. These collaborations help it deliver integrated solutions across government, enterprise, and Al-driven projects. This ecosystem approach strengthens its market presence and improves execution in large and complex deployments.

Financial Discipline and Operational Efficiency

The Company has maintained financial discipline with healthy margins and efficient operations. It continues to scale revenues while managing costs effectively. Strong execution and a stable financial position allow Netweb Technologies to invest in growth areas while maintaining operational efficiency.

Customer-Centric Growth Model

Netweb Technologies follows a customer-centric approach, working closely with government and enterprise clients to design solutions based on specific workload needs. This helps the Company build long-term relationships, encourage repeat business, and align its offerings with evolving customer requirements across sectors.

Source: 1 Lattice Report

Key Business Strategies

Scaling Al Infrastructure Capabilities

Netweb Technologies is witnessing strong growth in Indias Al infrastructure market, supported by the IndiaAl Mission, which is helping build domestic computing capacity through government-enabled GPU access, indigenous foundation models, and data platforms. The Company expects the growing adoption of generative and agentic Al by enterprises to drive sustained demand for Al computing systems, storage and related software over the coming years.

NetwebTechnologies expects data localisation requirements and Al-focused policies introduced by various state governments to create additional demand as states develop their own computing infrastructure and citizen-facing Al applications. The Company also expects greater focus on secure and dedicated Al infrastructure for localised and sovereign deployments across defence, banking, financial services, and insurance (BFSI) and government sectors.

Netweb Technologies aims to expand beyond its current role as an Al systems provider and build an integrated Al infrastructure platform. The Company plans to bring together computing, storage, networking, software, and pre-engineered solutions to help customers scale their Al initiatives from experimentation to secure, production- ready deployments.

Broadening and Deepening the Supercomputing Business

Netweb Technologies intends to expand its supercomputing business by participating in the next phase of Indias NSM, including NSM 2.0. The Company plans to strengthen its capabilities in pre-exascale and exascale-class systems through investments in compute platforms, high-speed interconnects, storage, system software, advanced cooling, and energy-efficient architectures.

Alongside government and research institutions, the Company plans to expand its customer base to enterprises, start-ups, universities, micro, small, and medium enterprises (MSMEs), and sector-specific users. Netweb Technologies also intends to develop converged HPC and Al architectures that can support applications such as scientific Al, engineering simulation, digital twins, and large-scale Al training.

Expanding Private Cloud and Data Centre Infrastructure Offerings

The Company intends to strengthen its position in Indias expanding data centre and cloud infrastructure market by supplying indigenously designed and manufactured servers, storage systems, and hyperconverged infrastructure. It plans to serve colocation operators, cloud service providers, and enterprises while leveraging its domestic manufacturing capabilities, local customisation, and pan- India support infrastructure.

The Company also plans to address the growing demand for sovereign private cloud solutions through its in-house Tyrone Skylus platform, which combines compute, storage, networking, and cloud management capabilities. In parallel, it intends to support the shift towards Al-ready data centres through high-density computingand liquid cooling solutions and expand its presence in Tier II markets through compact HCI and edge data centre configurations.

Pursuing Emerging Opportunities in Physical Al

The Company intends to build capabilities in physical Al, covering applications such as robotics, autonomous systems, and other Al-enabled physical platforms. Its strategy includes R&D across edge and embedded computing, Al agents, and the software and infrastructure connecting edge systems with centralised Al training environments.

The Company plans to use its existing Al systems and software capabilities as an entry point into this emerging market, particularly for Al training and simulation. It intends to initially focus on defence, national security, and strategic manufacturing, where indigenous technology, secure supply chains, and domestic manufacturing capabilities are important considerations.

Establishing Capabilities in Quantum Computing

The Company intends to build quantum computing capabilities by initially focusing on quantum simulation and emulation using classical HPC infrastructure. It has commenced R&D on quantum simulator and emulator systems that can help institutions, academia, and enterprises develop and test quantum applications before deploying them on physical quantum computers.

The Company also plans to engage with the National Quantum Mission ecosystem, including thematic hubs, research institutions, and start-ups, while continuing to invest in quantum simulation software, workload orchestration, and system architecture. These initiatives are intended to help it develop relevant intellectual property and technical capabilities ahead of the wider commercial adoption of quantum computing.

The Company intends to gradually increase its presence in international markets while maintaining its focus on the domestic opportunity. Exports contributed 1.40% of revenue in FY2026, providing a foundation for further expansion. The Company plans to expand its international business by strengthening its presence in key overseas markets. This expansion will be supported by developing an appropriate sales, service, and technical support infrastructure to effectively serve international customers and address their evolving requirements. This measured approach is intended to ensure international growth is aided by adequate customer service and execution capabilities, while domestic demand remains the primary growth driver.

Source: 1 Lattice Report

Awards and Recognition

Since 2017, Netweb Technologies has received several prestigious awards and recognitions for its commitment to innovation, technological excellence, and industry leadership. These accolades reflect the Companys focus on developing advanced technology solutions and delivering exceptional value to its customers, reinforcing its position as a trusted leader in the technology sector.

Credit Rating

During FY2026, CRISIL upgraded Netweb Technologies long-term bank facility rating to CRISIL A+/Stable from CRISIL A/Stable and reaffirmed its short-term rating at CRISIL A1, reflecting the Companys strengthened business profile, healthy financial risk profile, and sustained operational performance.

Dividend Payout

Netweb Technologies declared a final dividend of Rs.3.00 per equity share for FY2026, reflecting continued shareholder returns alongside its growth investments.

Financial Highlights

Profit & Loss ( Rs. million)

Particulars	For the year ended March 31, 2026	For the year ended March 31, 2025
1 Income
Revenue from operations	21,835.63	11,490.21
Other income	188.42	93.90
Total Income (1)	22,024.05	11,584.11
II Expenses
Cost of materials consumed	17,154.80	9,121.96
Change in inventories of finished goods and work-in-progress	128.11	(286.88)
Employee benefits expenses	802.85	623.37
Finance cost	129.53	40.90
Depreciation and amortisation expenses	142.11	113.43
Other expenses	901.45	441.33
Total Expenses (II)	19,258.85	10,054.11
III Profit before exceptional items and tax (1 - II)	2,765.20	1,530.00
IV Exceptional items (net)	-	-
V Profit before tax (III + IV)	2,765.20	1,530.00
VI Tax expense
(a) Current tax	696.03	400.55
(b) Adjustment of tax relating to earlier period	(0.68)	1.50
(c ) Deferred tax charge/(Credit)	11.69	(9.56)
Total Tax Expense	707.04	392.49
VII Profit for the year (V-VI)	2,058.16	1,137.51
VIII Other comprehensive income
Items that will not be reclassified to profit or loss:
- Re-measurement gains/(losses) on defined benefit plans	0.52	0.19
- Income Tax relating to items that will not be reclassified to profit or loss	(0.13)	(0.05)
Total Other Comprehensive Income for the Year (Net of Tax)	0.39	0.14
IX Total comprehensive income for the year (VII + VIII)	2,058.55	1,137.65
X Earnings per equity share (EPS)
Basic (in 7)	36.30	20.12
Diluted (in 7)	36.30	20.11
Face value per share (in 7)	2.00	2.00

Total Income

The Companys total income increased by 90.1% from Rs.11,584.11 million in FY2025 to 722,024.05 million in FY2026, primarily driven by a 90.0% Y-O-Y increase in revenue from operations, which rose from 711,490.21 million to 721,835.63 million. Meanwhile, other income rose by 100.7%, from 793.90 million in FY2025 to 7188.42 million in FY2026, primarily due to increase in interest income and fair valuation gain on derivative financial instruments.

Revenue from Operations

The Company achieved a significant growth milestone in FY2026, with revenue from operations increasing by 90.0% year-on-year to 721,835.63 million, up from 711,490.21 million in FY2025. This strong growth was driven by significant demand across key business segments primarily

H igh-Performance Computing (HPC), Private Cloud & Hyper- Converged Infrastructure (HCI), and Al Systems. Revenue from sale of products grew by 94.3% to 721,321.63 million in FY2026, up from 710,975.45 million in FY2025, led by a 30.9% increase in HPC (from 74,054.90 million to 75,307.51 million), a 28.4% increase in Private Cloud & HCI (from 74,026.53 million to 75,169.71 million), and a 459.6% increase in Al Systems (from 71,693.84 million to 79,477.94 million). Revenue from Data Centre Servers declined by 14.0%, from 7372.84 million to 7320.80 million, while High-Performance Storage Solutions grew by 19.3%, from 7274.71 million to 7327.72 million. Software and Services for High-end Computing Solutions (HCS) recorded a 12.9% increase, from 7455.36 million to 7514.00 million, reflecting increased adoption of integrated, value-added offerings across enterprise and institutional clients.

Other Income

Other income in FY2026 stood at 7188.42 million, increased significantly from 793.90 million in FY2025, primarily on account of increase in interest income from bank deposits from 772.71 million in FY2025 to 788.21 million in FY2026 and fair valuation gain on derivative financial instruments amounted to 795.02 million in FY2026.

Expenses

The Companys total expenses increased by 91.6% from 710,054.11 million in FY2025 to 719,258.85 million in FY2026, this increase was largely in line with the significant growth and scale-up in operations during the year. This increase included (i) an increase in the cost of goods sold from 78,835.08 million to 17,282.91 million, reflecting the strong uptick in demand across Al Systems, HPC, and Private Cloud infrastructure deployments (ii) an increase in employee benefits expenses from 7623.37 million to 7802.85 million, driven by talent acquisition across all company locations, and (iii) an increase in other expenses from 7441.33 million to 7901.45 million, primarily due to increased business activity, travel, professional consultancies, and operational scaling.

Cost of Materials Consumed

The Companys cost of materials consumed increased by 88.1% from 79,121.96 million in FY2025 to 717,154.80 million in FY2026. This increase corresponded with the substantial revenue growth during the year and reflects the scale-up in order execution. It also encompasses changes in inventories of raw materials, including stocking of critical components to maintain supply chain.

Change in Inventories of Finished Goods and Work-in-Progress

The Companys change in inventories of finished goods and work-in-progress increased from 7(286.88) million in FY2025 to 7128.11 million in FY2026.

Employee Benefits Expense

The Companys employee benefits expenses increased by 28.8% from 7623.37 million in FY2025 to 7802.85 million in FY2026, driven by talent acquisition across R&D, Al, and Cloud Service verticals, as well as Sales, Corporate, Manufacturing, and Operations teams. This includes (i) an increase in salaries and wages from 7541.12 million to 7737.92 million attributable to an increase in the number of permanent employees from 441 to 569, underlining Netwebs commitment to strengthening talent and supporting business growth; (ii) an overall increase in average compensation in line with competitive remuneration policies; and (iii) a decrease in share-based payment to employees from 751.75 million in FY2025 to 722.43 million in FY2026.

Finance Costs

The Companys finance costs increased by 216.7% from 740.90 million in FY2025 to 7129.53 million in FY2026, primarily due to (i) increase in interest on borrowings from 716.35 million

to 779.68 million, (ii) marginal increase in interest on lease liabilities from 76.81 million to 78.56 million, (iii) increase in interest on others from 74.57 million to 75.11 million, and (iv) increase in other borrowing costs from 713.17 million to 736.18 million.

Depreciation and Amortisation Expenses

The Companys depreciation and amortisation expenses increased by 25.3% from 7113.43 million in FY2025 to 7142.11 million in FY2026, reflecting ongoing investments in fixed assets and technology infrastructure aimed at long-term capability expansion. This was primarily due to an increase in the gross carrying amount of Property, Plant, and Equipment from 7556.04 million in FY2025 to 7695.06 million in FY2026, driven by (i) an increase in gross carrying value of the Plant and Equipment by 715.16 million, Buildings by 777.43 million, Furniture and Fixtures by 75.53 million, Office Equipment by 79.60 million, Computer by 714.39 million and Vehicles by 75.40 million, (ii) increase in gross carrying value of other I ntangible Assets by 714.58 million, and (iii) increase in carrying amount of right-to-use assets by 750.58 million. As a result, depreciation on tangible assets increased from 786.15 million to 7102.77 million, amortisation of intangible assets increased from 73.97 million to 76.16 million, and depreciation of right- of-use assets increased from 723.31 million to 733.18 million.

Other Expenses

The Companys other expenses increased by 104.3% from 7441.33 million in FY2025 to 7901.45 million in FY2026. This was primarily due to an increase in (i) travelling expenses from 752.20 million to 762.97 million from increased business activity, (ii) legal and professional expenses from 790.51 million to 7135.26 million, reflecting compliance and higher consulting and professional costs associated with expansion, (iii) business promotion expenses from 748.75 million to 777.33 million (iv) technical support expenses from 748.90 million to 7135.17 million, indicating outflows in technology support, (v) customer support expenses from 720.85 million to 740.78 million (vi) Corporate Social Responsibility expenses from 712.99 million to 721.12 million, showcasing the Companys commitment to social initiatives, (vii) office expenses from 727.95 million to 737.91 million and (viii) exchange difference fluctuation amounted to 7180.90 million

Profit/(Loss) Before Taxes

Profit before tax increased by 80.7%, from 71,530.00 million in FY2025 to 72,765.20 million in FY2026. This growth was primarily driven by a 90.0% increase in revenue from operations, which rose from 711,490.21 million to 721,835.63 million, while total expenses increased by 91.6% from 710,054.11 million to 719,258.85 million.

Tax Expenses

The Companys total tax expenses increased by 80.1% from 7392.49 million in FY2025 to 7707.04 million in FY2026 due to an increase in its current tax expense from 7400.55 million to 7696.03 million, in line with the increase in profit before tax.

Profit/(Loss) for the Year

The revenue mix comprised Rs.9,477.9 million from Al Systems, Rs.5,307.5 million from High-Performance Computing Systems, Rs.5,169.7 million from Private Cloud & HCI, Rs.327.7 million from High-Performance Storage Solutions, Rs.320.8 million from Data Centre Servers, and Rs.1,232.0 million from Software Services, Spares, and Others.

Significant Changes in Key Financial Ratios Interest Coverage Ratio

The Interest Coverage Ratio declined to 22.35 in FY2026 from 38.41 in FY2025, reflecting a 41.8% year-on-year decrease. The moderation was primarily attributable to a 216.7% increase in finance costs and higher borrowings during the year, which were undertaken to support the strong business demand. Despite the increase in the interest burden, the Company maintained adequate debt-servicing capability, supported by its strong operational performance.

Current Ratio

The Current Ratio moderated to 1.44 in FY2026 from 2.33 in FY2025, reflecting a 38.2% year-on-year decrease. While current assets increased by 165.8%, led by higher inventories of 263.7%, trade receivables of 85.3%, cash and cash equivalents of 114.9%, and bank balances other than cash and cash equivalents of 2,269.1%, the ratio moderated due to a 329.2% rise in current liabilities. The current ratio indicated a healthy level of current assets relative to current liabilities.

Net Debt to Equity Ratio

The Net Debtto Equity Ratio declined to (0.17) in FY2026from (0.31) in FY2025, reflecting a 43.9% year-on-year decrease. The change was primarily driven by a 23.3% reduction in net cash surplus, from Rs.1,621.3 million to Rs.1,243.5 million. During the same period, total equity increased by 37.7%, further strengthening the Companys balance sheet. The negative Net Debt to Equity Ratio reflects the Companys healthy, debt-light capital structure and provides greater financial flexibility.

Return on Equity (RoE)

The Companys RoE improved significantly to 32.9% in FY2026 from 23.9% in FY2025, reflecting a 897 basis points year-on- year increase. This improvement was primarily driven by Profit After Tax (PAT), which grew by 80.9%, from Rs.1,137.51 million in FY2025 to Rs.2,058.16 million in FY2026. The higher profitability, supported by strong operational performance, resulted in a healthy Return on Equity, which remained above industry norms.

Changes in Accounting Policies

The Company changed its inventory valuation method for raw materials, finished goods, and work-in-progress from the First-In First-Out (FIFO) method to the moving weighted- average cost method, effective from Q1 FY2026. Accordingly, the prior period financial figures have been restated for comparison. However, the impact of this accounting policy change is not material.

Key Performance Indicators

			( Rs. in million)
Particulars	FY2026	FY2025	Y-O-Y Change (%)
Sale of products	21,321.63	10,975.45	94.27%
Sale of services	514.00	455.36	12.88%
Other operating revenue	0.00	59.40	(100.00%)
Revenue from operations	21,835.63	11,490.21	90.04%
Cost of goods sold (COGS)	17,282.91	8,835.08	95.62%
Gross margin (%)1	20.85%	23.11%	(2.26) pp
Operating EBITDA2	2,848.42	1,590.43	79.10%
Operating EBITDA margin (%)2	13.04%	13.84%	(0.80) pp
Profit for the year	2,058.16	1,137.51	80.94%
Profit after tax margin (%)3	9.35%	9.82%	(0.47) pp
Return on equity (ROE) (%)4	32.87%	23.90%	8.97 pp
Return on capital employed (ROCE) (%)5	37.53%	32.41%	5.12 pp
Total borrowings6	2,822.23	79.49	3,450.42%
Net debt7	(1243.53)	(1,621.34)	N.M.
Net debt to equity ratio (times)8	(0.17)	(0.31)	N.M.
Net debt to EBITDA (times)9	(0.44)	(1.02)	N.M.
Asset turnover ratio (in times)10	37.88	22.79	66.21%

Notes:

1. Gross Margin: Percentage of total revenue from operations for the year, less cost of goods sold for the year, divided by total revenue from operations for the year. Cost of goods sold is taken as a sum of the cost of materials consumed and change in inventories of finished goods and work-in-progress.

2. Operating EBITDA is calculated as profit for the year plus tax expense, depreciation and amortisation, and finance cost for the year, while Operating EBITDA Margin is the percentage of EBITDA divided by total revenue from operations for the year.

3. Profit After Tax Margin is a percentage of profit for the year divided by total revenue from operations for the year.

4. Return on Equity is calculated as profit for the year divided by average equity.

5. Return on Capital Employed is calculated as earnings before interest and taxes expenses (EBIT) for the year divided by average capital employed. EBIT is calculated as EBITDA for the year less depreciation for the year, and capital employed is sum of equity, total borrowings, and deferred tax liabilities.

6. Total Borrowings are current and non-current borrowings plus current and non-current lease liabilities.

7. Net Debt is total borrowings reduced by cash and cash equivalent.

8. Net Debt to Equity is calculated as net debt divided by equity.

9. Net Debt to EBITDA is calculated as net debt divided by EBITDA for the year.

10. Asset Turnover Ratio: Total revenue from operations for the year divided by average total assets; where total assets represent the sum of Net Block of Property, Plant and Equipment, Capital Work in-Progress, Right-of-Use Assets, Net Block of Intangible Assets, and Intangible Assets under Development. Average total assets are computed as the average of total assets at the beginning and end of the financial year.

Research and Development (R&D)

Netweb Technologies considers R&D a key pillar of its growth strategy, enabled by dedicated R&D facilities in Faridabad, Gurugram, Bengaluru, and Hyderabad. As of June 30, 2026, the Companys R&D team comprised 110 professionals, representing 19.33% of its total workforce. Its in-house engineering capabilities support the development of proprietary hardware and software solutions across HPC, Al, private cloud, storage, and networking. The Company has developed products including Tyrone Cluster Manager, KUBYTS, VERTA, ParallelStor, Tyrone COLLECTIVO, Skylus, Skylus.ai, FMOcean, VELOX, and Tyrone CAMARERO Al Systems and GPU Systems.

Its R&D and engineering capabilities include cyber- secure firmware, private cloud and Al applications, system manufacturing, kernel-level design, high-density computing architectures, thermal and signal-integrity optimisation, hardware design, and HPC-AI codes, enabling faster deployment and adaptation to evolving technology requirements. Aligned with the Government of Indias Make in India initiative, Netweb Technologies is among the OEMs manufacturing IT hardware domestically at scale and is qualified under the Production Linked Incentive(PLI) Schemes for IT hardware and telecom and networking products.

Source: 1 Lattice Report

ESG Initiatives

Netweb Technologies remains committed to conducting its business responsibly while creating long-term value for all stakeholders. During the year, the Company continued to strengthen its environmental, social, and governance (ESG) framework through a structured approach led by its ESG Committee. The Committee evaluates the Companys existing practices, identifies areas for improvement, and guides the implementation of its ESG roadmap. To strengthen corporate governance, the Company has implemented policies covering employee grievance redressal, equal employment opportunities, gender equality, and anti-corruption practices. These policies help promote an inclusive, transparent, and ethical work environment. The Company also places significant emphasis on employee development and wellbeing. It is committed to providing at least 25 hours of training to every employee each year to support continuous learning and skill development. In addition, all employees are covered by medical and accident insurance schemes and the Company plans to introduce life insurance coverage in the future. On the environmental front, Netweb Technologies has set a target to source at least 5% of its total energy requirement from renewable sources by 2027, reflecting its commitment to improving environmental sustainability.

Risk and Mitigation

Risk	Impact	Mitigation
Cybersecurity Risk	Increasing digitalisation exposes the Company and its solutions to cyber threats, which could disrupt operations, impact customer confidence, and lead to regulatory consequences.	The Company has implemented robust cybersecurity practices aligned with global standards. Its manufacturing facility is certified under ISO/IEC 27001:2013, ensuring strong controls over information security and data protection.
Technology Risk	Rapid technological advancements could make existing products or technologies obsolete.	Continuous investments in R&D and close partnerships with leading technology companies such as Intel, AMD, and NVIDIA help the Company develop next-generation solutions and remain technologically competitive.
Regulatory and Compliance Risk	The Company operates in sectors such as defence, telecom, and BFSI, which are subject to stringent regulatory and cybersecurity requirements.	Dedicated teams continuously monitor regulatory developments, while compliance with recognised ISO standards helps ensure adherence to applicable quality, environmental, and information security requirements.
Credit Risk	Delays in customer payments could affect profitability and cash flows.	The Company follows a disciplined collection and receivables management process to ensure timely recovery of outstanding dues.
Foreign Exchange Risk	Fluctuations in exchange rates may affect profitability due to foreign currency transactions.	The Company primarily manages this exposure through natural hedging by balancing foreign currency inflows and outflows.
Customer Concentration Risk	Dependence on a limited number of large customers may impact revenues if any major customer reduces business.	The Company continues to maintain long-standing customer relationships while expanding its customer base across industries to reduce concentration risk.
Reputation Risk	Delays in project execution, quality issues, or cybersecurity incidents could affect the Companys reputation.	Strong execution capabilities, indigenous product development, robust quality processes, and successful delivery of large HPC and Al infrastructure projects help maintain customer confidence and strengthen the Companys market reputation.

Human Resources

People remain one of Netweb Technologies greatest strengths. As of March 31, 2026, the Company had 569 permanent employees and 96 other than permanent. The Company is committed to creating a workplace that encourages learning, innovation, collaboration, and professional growth. It invests in regular training and skill development programmes to help employees enhance their capabilities and adapt to evolving technologies. The Company also promotes an inclusive work culture that values diversity, encourages teamwork, and recognises employee contributions. To attract and retain talented professionals, Netweb Technologies offers Employee Stock Option plan(ESOPs), performance-based incentives, rewards and recognition programmes, and structured performance management systems. The Company also encourages employees to share ideas and suggestions that contribute to continuous organisational improvement.

Internal Controls

The Company has established a robust internal control framework appropriate to the nature and scale of its operations. These controls are designed to ensure efficient utilisation of resources, safeguard assets, maintain the accuracy of financial records, and support compliance with applicable laws, regulations, and internal policies. The internal control system covers all key business functions and includes clearly defined approval processes, regular monitoring, and periodic reviews. Internal audits and statutory audits are conducted to assess the effectiveness of these controls and recommend improvements wherever required. The Company continues to strengthen its internal control processes to improve operational efficiency and manage business risks effectively.

Quality Control

Quality remains a key focus for Netweb Technologies across its manufacturing operations. The Company has established quality management systems to ensure that its products and solutions consistently meet customer expectations and industry standards. Quality checks are conducted at every stage of the procurement and manufacturing process. The Company also follows a strict supplier evaluation process to ensure all purchased components comply with the Restriction of Hazardous Substances (RoHS) requirements. The Companys manufacturing facilities are certified under ISO 9001:2015 for Quality Management Systems, ISO 14001:2015 for Environmental Management Systems, and ISO/IEC 27001:2013 for Information Security Management Systems. In addition, its servers, workstations, and storage solutions have received BIS certification under IS 13252 Part 1:2010/IEC 60950-1:2005. Before products are delivered to customers, they undergo several quality and performance tests, including dielectric (HIPOT), insulation resistance, burn-in, electrostatic discharge, and Linpack performance tests. These testing processes help ensure that the products deliver reliable performance, meet quality standards, and provide a consistent customer experience.

Cautionary Statement

Statements made in this report describing the Companys objectives, projections, expectations, orfuture performance may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied due to various factors, including changes in government policies, economic conditions, taxation, market dynamics, competition, and other risks affecting the Companys business.The Company undertakes no obligation to publicly update or revise these forward-looking statements based on future events or developments.