Global Economic Overview
In 2024, the global economy demonstrated relative stability despite persistent challenges stemming from geopolitical tensions, trade uncertainties, and policy shifts. According to the IMFs World Economic Outlook, global GDP grew by 3.3%, with advanced economies experiencing a slowdown while emerging markets, particularly in Asia, sustained steady growth momentum.
Ongoing geopolitical conflicts, including the war in Ukraine and disruptions in the Red Sea, continued to place pressure on global trade and supply chains. Nonetheless, inflation showed signs of easing, with global inflation projected to decline to 5.7% in 2024 from 6.7% in 2023. Developed economies are on track to meet their inflation targets more swiftly, averaging 2.6%, whereas emerging markets are expected to see a more gradual moderation.
The US-China tariff war saw tariff import rates peak at 148% and 135%, disrupting the global trade and supply chains. Although negotiations led to partial de-escalation, bringing the tariffs down to 51% by the U.S. and 33% by China, tensions persist through non-tariff barriers like Chinas mineral export controls and US tech restrictions. Moreover, China has diversified its export base towards ASEAN and Latin America, reducing the influence of the US on global trade dynamics. However, despite the tariff rollback, elevated duties and lingering uncertainty continue to pose challenges to global trade stability and recovery. In response, major central banks implemented substantial rate cuts, with G10 economies reducing rates by a combined 825 basis points in 2024 - the most significant easing since 2009.
Outlook
Global economic growth is projected to remain steady, with forecasts of 2.8% in 2025 and 3.0% in 2026, driven by resilient performance in the United States and key emerging markets. The US GDP is expected to grow by 1.8% in 2025 and 1.7% in 2026, reflecting a cooling in consumer demand and evolving dynamics in the labour market. The Eurozone is anticipated to experience a gradual recovery, with growth improving from 0.8% in 2025 to 1.2% in 2026, supported by easing inflation and a rebound in consumer spending.
Global inflation is projected to witness a further decline, reaching 4.3% in 2025 and 3.6% in 2026, although the regional variations are expected to persist. As a result, the monetary policy is likely to diverge across economies, responding to specific domestic conditions.
(Source: IMF World Economic Outlook, World Economic Forum, Peterson Institute for International Economics)
Indian Economic Overview
India has become the worlds fourth-largest economy by nominal GDP and third-largest by purchasing power parity. The nation continued its stable growth trajectory in FY2025, with the real GDP rising by 6.5% according to the NSOs Second Advance Estimates, following 9.2% growth in the prior year.
This momentum reflects strong domestic demand, effective policy reforms, and a resilient services sector.
With targets of reaching a US$5 trillion economy by FY2028 and US$30 trillion by 2047, the government is driving growth through infrastructure investments, digital transformation, and schemes like Make in India and the PLI initiative. The capital investment outlay for FY2026 has been raised to 11.21 lakh crore (3.1% of GDP).
The Indian IT industry rose at an estimated 5.1% to US$282.6 billion in FY2025, a 4% year-over-year growth compared to FY2024. The IT industry added an anticipated 1,26,000 jobs during the year under review, taking the overall sector employment to 5.8 million. The BPM sector recorded an estimated US$54.6 billion in revenue for FY2025, a 4.7% year-over-year increase.
Indias technology talent base will be a key enabler of future growth for the sector. While the CEO outlook for FY2026 is cautiously optimistic bolstered by rising investments in technology and artificial intelligence, maintaining this momentum will require a clear strategic direction. Continued upskilling in both niche and core tech domains will be essential to support long-term industry competitiveness.
Indias total exports touched an all-time high of US$824.9 billion in FY2025, growing 6% year-on-year. This was majorly attributed to the countrys services exports that peaked at US$387.5 billion in FY2025 as against US$341.1 billion in FY2024, a 13.6% Y-O-Y growth.
Outlook
Indias economy is projected to grow at 6.2% in FY2026, driven by increasing private investment, ongoing infrastructure development, favourable demographic trends, and robust consumer demand. The country is on track to become the worlds third-largest economy by 2030.
Global trade disputes, like the US-China tariff war, disrupted the supply chains and trade flows, with indirect effects
India. However, the nation has taken the necessary steps to tackle these challenges. Indias tariff policy is strategically designed to protect the domestic industry, generate revenue, and support global competitiveness. Moreover, recent reforms target correcting inverted duty structures and reducing import costs for key sectors like electronics and EVs. The country has also implemented tariff reductions on critical components, aiming to boost manufacturing and exports. India balances commitments with the WTO through calibrated tariff use and actively pursues Free Trade
Agreements to lower trade barriers, aligning trade policy with its broader growth and industrial development goals. on The Union Budget for 2025 26 focuses on inclusive growth, introducing measures such as raising the tax exemption limit to 12 lakh to stimulate consumption, and significantly increasing capital expenditure on roads, railways, and manufacturing. The budget also reinforces Production-
Linked Incentive (PLI) schemes and advances logistics and financial inclusion through initiatives like the transformation of India Post. Inflation is anticipated to moderate by late 2025, potentially allowing for a more accommodative monetary policy stance.
(Source: PIB, MoSPI, IBEF1, IBEF2, Nasscom)
Global IT Industry Overview
The global IT market size in FY2025 rebounded strongly from the preceding decline, with the total industry revenue expected to have reached US$5,926 billion, an increase of nearly 5.8% year-on-year for the time spanning FY2019-FY2025. This growth was largely driven by a surge in investments in AI and cloud infrastructure.
Global IT Market by Segments (US$ in bn) – FY 2019-2029F (historical and estimated years)
Particulars |
Market Size |
CAGR |
|||
| FY19 | FY25 | FY29 | FY19-FY25 | FY25-FY29 | |
| Telecom Services | 1,535.7 | 1,744.4 | 1,989.2 | 2.1% | 3.3% |
| Emerging Tech | 193.3 | 220.4 | 298.1 | 2.2% | 7.8% |
| IT + Business Services | 1,162.8 | 1,733.2 | 2,353.7 | 6.9% | 8.0% |
| Software | 514.8 | 1,206.5 | 1,883.0 | 15.3% | 11.8% |
| Other Devices + | 770.0 | 965.7 | 1,255.3 | 3.8% | 6.8% |
| Infrastructure | |||||
| Workstations | 4.5 | 6.8 | 8.2 | 7.1% | 4.8% |
| HPC Systems | 37.8 | 49.0 | 58.2 | 4.4% | 4.4% |
Global IT Industry |
4,218.9 | 5,926.0 | 7,845.7 | 5.8% | 7.3% |
Notably, the spending on data centre systems jumped 39.4% in 2024 (to about US$329 billion) as enterprises and cloud providers strived to deploy AI-optimised hardware. Besides, software and services also grew, fuelled by cloud migration, digital transformation, and cybersecurity spending. However, rising inflation and supply-chain costs consumed much of the budget increases.
Segmental analysis
The global software market is expected to have reached
~US$1,207 billion in FY2025, fuelled by strong enterprise demand for SaaS, AI/ML integration, cybersecurity, and industry-specific solutions. Moreover, this growth is expected to continue at a CAGR of 11.8% through FY2029.
The global telecom services market showed modest growth, with the market expanding from US$ 1,536 billion in FY2029 to an anticipated US$ 1,744 billion by FY2025, growing at a CAGR of 2.1%. This growth is expected to further accelerate post-FY2025, reaching US$ 1,989 billion by FY2029. This growth is driven by increasing demand for 5G rollout, IoT connectivity, and enterprise-grade network solutions.
The emerging tech segment across the globe is expected to witness a sharp uptick, forecasted to have grown from
US$ 193 billion in FY2029 to US$ 220 billion in FY2025 and further to an anticipated US$ 298 billion in FY2029, growing at a CAGR of 7.8% post FY2025 to FY2029. The segment gains momentum from increased investments in AI, blockchain, AR/VR, and quantum computing.
The global IT and business services segment is one of the largest in the IT industry, and is expected to grow at a CAGR of 7.9%, growing from ~US$ 1,733 billion in FY2025 to US$ 2,354 billion in FY2029. Strong and steady growth reflects rising digital transformation initiatives and IT outsourcing trends across enterprises.
Regional analysis
North America remains the largest IT market, accounting for an estimated 40% of the global IT spending in 2025. The growth of the IT market in this region was led by investments in generative AI, cloud, and cybersecurity, with US tech spending expected to rise over 10% in 2025 due to pre-tariff acceleration. The North American region is followed by Europe (EMEA) with steady growth, projected to reach US$1.28 trillion in 2025, driven by digital mandates, regulatory compliance, and infrastructure upgrades like ERP and 5G.
Asia Pacific is the fastest-growing region, led by cloud and 5G investments in China, India, and Southeast Asia. ICT spending is expected to exceed US$1.4 trillion by 2025. Latin America saw 7-9% growth in 2024, with cloud and broadband adoption driving demand. The Middle East and
Africa, while smaller in size, are growing steadily at 4-7%, with
Gulf countries and South Africa investing in cybersecurity and smart cities.
Key IT Trends: Next-Gen Cloud, Compute, and Intelligence
From GPUs to Grid: The New Economics of AI Investment
Generative AI has become a key driver of record hardware investments, particularly in GPUs, and has fueled double-digit growth in AI-related software. Analysts note that data center spending is ‘exploding as companies race to build the infrastructure required for large-scale GenAI systems.
1. From Experimentation to ROI: Generative AI as a Catalyst for Infrastructure Spending a. Global capital expenditures on GenAI infrastructure are expected to reach US$376 billion by 2026, marking a decisive shift from experimentation to enterprise-wide deployment. While investments currently outpace revenues, GenAI is projected to generate over US$1.08 trillion in monetisation by 2028, with a positive ROI trajectory emerging from 2025. Organisations are accelerating the deployment of AI agents, modernising data and compute infrastructure, and building scalable, secure environments to support long-term value creation through AI.
GenAI Capital Cycle: Peak Investment Years Before Payback
1,084 b. GenAI Monetisation Deepens Across Software and
Consumer Ecosystems
Spending on Generative AI is accelerating at an unprecedented pace, signalling a transition from experimentation to scalable, revenue-generating use cases across both enterprise and consumer domains. i. GenAI software spending is projected to grow from US$16 billion in 2024 to US$401 billion by 2028, accounting for approximately
22% of total global software spending by that year. This reflects large-scale enterprise adoption of GenAI tools, including copilots, orchestration platforms, and embedded AI agents, across business workflows, cloud platforms, and vertical applications.
ii. On the consumer side, GenAI-driven spending is expected to rise from US$29 billion in 2024 to US$683 billion in 2028, fuelled by its integration into e-commerce, advertising, mobility, and personal tech.
1. Breakdown of projected GenAI consumer spend by 2028 includes: a. US$469 billion from GenAI-enabled e-commerce, up from under US$1 billion in 2024
b. US$197 billion from GenAI-driven advertising, rising from US$28 billion
c. US$6 billion in autonomous driving-related GenAI spend, up from
<US$1 billion
d. US$10 billion from GenAI-integrated wearables, also rising from
<US$1 billion
Al Capax Forecast Suggest ~14x Increase in Compute Capacity c. Together, these figures underscore the expanding economic footprint of GenAI across digital, physical, and consumer ecosystems. Enterprises are no longer just investing in infrastructure, they are beginning to realise multi-channel monetisation, marking a clear shift from capital-intensive build-outs to scalable value creation. Over the coming years, an estimated ~US$1 trillion is expected to be invested by technology firms, enterprises, and utilities in data centers, AI accelerators, infrastructure, and power grid modernisation, laying the groundwork for GenAI to become a core enabler of productivity and growth.
d. However, this scale-up comes with trade-offs, AI data centers can consume up to 10x more energy than traditional ones, especially during the training phase, raising concerns around sustainability and energy efficiency.
ChatGPT Queries are 10x as Power Intensive as Google Searches
Power consumption per query/search, Watt-hour (Wh) e. By 2026, 75% of the worlds largest companies are expected to adopt value-based AI investment models that evaluate cost, productivity, decision-making, and innovation, or risk falling behind new ROI benchmarks.
2. The Rise of AI Oligopolies and Hyperscaler Dominance: By 2028, hyperscalers are expected to operate US$1 trillion worth of AI-optimised servers.
Notably, these will not be deployed through traditional IaaS models, but as part of a strategic pivot to dominate the emerging oligopolistic AI model market. As these players consolidate their influence, they are reshaping the infrastructure and economics of the AI landscape.
3. Strategic Imperative: These developments reflect an urgent, strategic pivot: AI is no longer a future bet, it is a core capability. Long-term investments in AI infrastructure, models, and operational integration are essential for organisations to stay competitive, drive innovation, and unlock new sources of value.
Source: Company Research
Compute Capital: Why Enterprises Are Doubling Down on HPC
High Performance Computing (HPC) is becoming a strategic enabler of advanced workloads from AI model training and simulation to genomics, weather forecasting, and chip design. As data volumes grow and computational complexity intensifies, enterprises and research institutions alike are investing in purpose-built HPC systems to accelerate time-to-insight and support mission-critical innovation.
The convergence of HPC and AI is reshaping infrastructure priorities. Modern HPC environments increasingly rely on accelerators like GPUs and custom silicon, high-speed interconnects, and low-latency storage architectures. Cloud-based HPC is also gaining traction, offering on-demand scalability and lowering barriers to entry for complex compute-intensive workloads. As use cases expand beyond traditional domains, HPC is no longer confined to labs; it is becoming a mainstream enterprise capability, powering competitive advantage across industries.
Cloud Adoption: From Migration to Modernisation
Cloud adoption is evolving from simple workload migration to strategic modernisation. Enterprises are embracing public, private, and hybrid clouds to boost agility, resilience, and AI integration. Multi-cloud strategies are gaining ground to avoid lock-in and improve performance, while sovereign and industry-specific clouds are rising in regulated sectors. Meanwhile, cloud-native technologies like containers,
Kubernetes, and serverless computing are accelerating innovation and enabling scalable, flexible architectures.
Other Key Highlights
Cybersecurity Focus:
A wave of high-profile breaches and rising attack rates (average ~1,636 attacks per organisation per week, a 30% Y-O-Y increase) drove steady growth in security solutions.
Hybrid Work and IoT:
Continued demand for remote-work tools and IoT connectivity increased spending on devices, networking, and collaboration software.
Inflation and costs:
Nominal growth was inflated by cost increases. Firms reported that much of the higher IT budget went to higher recurring costs, dampening net new investment returns.
Outlook
Most forecasts call for continued strong IT spending growth in 2025. It is expected that the IT industry will further grow to roughly US$7,846 billion by FY2029, at a growth rate of 7.3%. This is expected to outpace the global GDP. Besides, the sector is optimistic on the back of continued digital transformation, post-pandemic recovery, and new technology.
(Source: Company Research)
Indian IT Industry Overview
Indias information and technology sector continued steady growth during the year under review, reaching an estimated
US$264 billion in revenue, growing at a year-on-year rate of 6.9% from FY2019 to FY2025. The IT exports accounted for nearly 80% of this revenue, while the domestic IT market constituted ~20%. Furthermore, the sector added nearly
1,26,000 net new jobs (a total of ~5.8 million employees, +3.5% Y-O-Y). The US and banking/financial services (BFSI) drove much of the growth, with APAC, telecom, retail, and healthcare also emerging as key verticals for the industry. Despite global uncertainty, robust digital spending (especially in AI and cloud) resulted in demand growth for the sector.
Indias IT landscape is anchored by large service firms and a dynamic startup scene. Leading IT services providers continue to dominate global outsourcing and consulting. These giants are now increasingly integrating digital, cloud, and AI services into their offerings. At the same time, India is home to ~1,57,000 DPIIT-recognised tech startups, making it the worlds third-largest startup ecosystem. Over 100 of these have reached unicorn status. Startups in SaaS, fintech, edtech, health tech, and deep tech are injecting innovation into the industry. In short, the sector blends established multinationals and burgeoning homegrown companies, supported by policy initiatives, to meet diverse enterprise needs.
Indian IT Market by Segments (US$ in mn) – FY 2019-2029F (historical and estimated years)
Particulars |
Market size | CAGR |
|||
| FY19 | FY25 | FY29 | FY19-FY25 | FY25-FY29 | |
| Telecom Services | 7,159.8 | 9,920.0 | 12,906.0 | 5.6% | 6.8% |
| Emerging Tech | 58,300.1 | 88,633.0 | 1,26,720.0 | 7.2% | 9.3% |
| IT + Business | 48,338.0 | 73,188.0 | 1,04,357.0 | 7.2% | 9.3% |
| Services | |||||
| Software | 29,959.5 | 43,049.0 | 59,260.0 | 6.2% | 8.3% |
| Other Devices + | 32,704.5 | 48,022.0 | 67,087.0 | 6.6% | 8.7% |
| Infrastructure | |||||
| Workstations | 160.6 | 544.0 | 1,456.0 | 22.5% | 27.9% |
| HPC Systems | 377.5 | 644.0 | 919.0 | 9.3% | 9.3% |
Global IT Industry |
177,000.0 | 264,000.0 | 372,706.0 | 6.9% | 9.0% |
Major IT applications
Indias IT capabilities are applied widely: financial services, healthcare, manufacturing, retail, and government are among the top users of technology. The table below summarises these major IT applications by sector:
Industry Sector |
Key IT Applications |
BFSI (banking/ financial services/ insurance) |
Digital banking and core-banking software, mobile/UPI payment platforms, fintech apps, online insurance portals, AI/ML for credit scoring and fraud detection, big-data analytics, and cybersecurity systems. |
Healthcare |
Electronic medical records (EMR), telemedicine/telehealth platforms, health information exchanges, remote monitoring (IoT), AI diagnostics (such as imaging and pathology), health analytics, and hospital management systems. |
Manufacturing |
Industry 4.0 solutions: IoT sensors and automation (smart factories), robotics/3D printing, supply chain and ERP software, CAD/CAM and PLM tools, digital twin/simulation, AI for quality control and predictive maintenance. |
Retail and E-commerce |
E-commerce storefronts and m-commerce apps, POS/checkout systems, CRM and customer-analytics platforms, inventory and warehouse management software, loyalty/coupon systems, AI-driven recommendation engines, and chatbots. |
Government and Public Sector |
E-governance and citizen-service portals, Aadhaar/eKYC identity services, digital payment (UMANG, Bharat BillPay), digital welfare distribution, tax and compliance systems (GST portals), data analytics for policy/ planning, and GIS/smart-city systems. |
Key Growth Segments
Emerging tech: Accounting for the largest share in the Indian IT sector revenue mix, the sector was driven by AI, IoT, blockchain, and edge computing adoption across the sectors, resulting in a 7.2% growth over the time spanning from FY2019 to FY2025.
IT/business services (digital and consulting): This segment remains one of the largest, with revenues of approximately
US$73.19 billion in FY2025, growing at a year-on-year growth of 7.2% from FY2019 to FY2025. Companies are increasingly focusing on cloud-native development, AI-driven service delivery, and advanced cybersecurity offerings.
Telecom services: The telecom services segment is expected to have generated US$9.92 billion in revenue in FY2025, growing at ~5.6% over the last six years. This growth was driven by 5G rollout, rural connectivity expansion, and increasing data consumption, which are expected to boost the segment further.
Software: The Indian software segment is forecasted to have reached US$43 billion in revenue in FY2025, growing at a CAGR of 6.2% over the last six years. This growth was fuelled by cloud-based solutions, SaaS adoption, and enterprise software demand.
Key Growth Drivers
Digital Transformation: Rapid enterprise digitisation is a major growth driver for the Indian IT industry. The Indian digital transformation market is estimated to have reached
US$710 billion by 2024, growing at an impressive CAGR of approximately 74% between 2018 and 2024. Businesses across sectors such as BFSI, healthcare, manufacturing, and government are leveraging cloud computing, mobility, IoT, big data, and advanced analytics to enhance operations. The innovative use of AI and data analytics is widely regarded as the most critical factor enabling transformative shifts in business models, products, services, and decision-making.
AI Adoption: The push for AI (especially generative AI) is transforming IT demand. Indias AI ecosystem has strong policy backing and talent, with the AI market expected to grow 25 35% annually. Government initiatives like the IndiaAI Mission (10,371 cr) and prior AI strategies underscore this focus. Enterprises are investing in AI/ML capabilities for everything from customer service to industry-specific use cases.
Global Outsourcing Demand: India remains a leading destination for global tech outsourcing. Indian IT exports account for roughly 18% of worldwide IT outsourcing spend. Strong demand from the US (especially banking/ retail) and renewed client spending have buoyed growth, even as European demand softens. The countrys talent cost advantage, scale of offshore centers (GCCs), and ability to co-create innovations with clients continue to attract outsourced projects.
Policy and Ecosystem Support: Government policies play a crucial role in sustaining the IT sectors momentum. India allows 100% FDI in IT, supports 67 Software Technology Parks
(STPI), and has introduced the National Policy on Software
Products (2019) to foster innovation. Talent development programs such as NIELIT, FutureSkills, TIDE, and SAMRIDH are nurturing a skilled workforce, while startup schemes like Startup India and tax incentives have helped establish a dynamic tech startup ecosystem. The digital public infrastructure (India Stack) and various funding initiatives further accelerate industry development.
Domestic Digitisation: Surging domestic demand is another key growth driver for the IT sector. Government-led initiatives under the Digital India campaign—such as Aadhaar,
UPI, eSign, and the Government e-Marketplace have transformed service delivery across critical sectors. Most essential citizen services now operate on digital platforms, including banking, payments, healthcare, education, and welfare programmes. Moreover, Indias domestic tech market, valued at over US$10 billion, is expanding rapidly as small and mid-sized enterprises adopt cloud and SaaS tools. This large-scale digitisation is creating sustained demand for IT solutions within the country.
(Sources: NASSCOM, indiaai.gov.in, www.india.gov.in, pib.gov.in, Company Research)
Indian HPC Market Overview
The Indian high-performance computing (HPC) market size was valued at a forecasted US$643.6 billion in FY2025 and is anticipated to reach US$918.6 billion by FY2029, growing at a CAGR of 9.3% during the period. The key drivers underpinning this markets momentum include the accelerated adoption of AI/ML and big data analytics across diverse sectors, alongside the rapid expansion of cloud-based HPC solutions and HPC-as-a-Service (HPCaaS), which offer crucial scalability and cost-efficiency benefits. Furthermore, pivotal government initiatives, such as the National Supercomputing Mission (NSM) and the IndiaAI Mission, are actively deploying advanced supercomputing infrastructure and cultivating a skilled workforce, thereby playing a transformative role in shaping the market.
Indian HPC Market by Segments (US$ in mn) – FY2019-FY2029F
Particulars |
Market size |
CAGR |
|||
| FY19 | FY25 | FY29 | FY19-FY25 | FY25-FY29 | |
| Others | 56.6 | 90.4 | 110.2 | 8.1% | 5.1% |
| Oil & Gas | 18.9 | 35.9 | 55.1 | 11.3% | 11.3% |
| Media | 18.9 | 28.1 | 36.7 | 6.8% | 6.9% |
| Telecommunications | 56.6 | 88.6 | 119.4 | 7.8% | 7.7% |
| IT & ITES | 75.5 | 164.2 | 275.6 | 13.8% | 13.8% |
| BFSI | 37.7 | 71.8 | 110.2 | 11.3% | 11.3% |
| Government & | 113.2 | 164.6 | 211.33 | 6.4% | 6.4% |
| Defence | |||||
Indian HPC Market |
377 | 643.6 | 918.53 | 9.3% | 9.3% |
Did You Know?
A significant milestone in this indigenous journey was establishment of the Centre for Development of Advanced Computing (C-DAC), which successfully unveiled the PARAM 8000 supercomputer in 1991, marking a crucial step towards Indias self-reliance in this domain.
National Supercomputing Mission: Driving the Indian HPC Market Forward
The National Supercomputing Mission (NSM) is a flagship initiative launched by the Government of India in 2015 to build indigenous high-performance computing (HPC) capabilities and position India as a global leader in supercomputing. The mission seeks to bolster scientific research, technological innovation, and capacity building across academia, industry, and government institutions.
As of March 2025, NSM has successfully deployed 34 supercomputers with a cumulative compute capacity of 35
Petaflops across premier academic institutions, research organisations, and R&D laboratories. These include the Indian Institute of Science (IISc), various Indian Institutes of
Technology (IITs), the Centre for Development of Advanced Computing (C-DAC), and several institutions from Tier-II and Tier-III cities. The deployed systems have achieved an impressive average utilisation rate exceeding 85%, with some installations operating at over 95% capacity, reflecting both the demand and efficiency of these HPC resources.
These supercomputers have significantly contributed to Indias R&D ecosystem, benefiting over 10,000 researchers, including more than 1,700 PhD scholars from over 200 academic and R&D institutions. They have enabled high-impact research in critical areas such as drug discovery, disaster resilience, energy security, climate and weather modelling, astrophysics, computational chemistry, fluid dynamics, and materials science. By democratising access to cutting-edge computational infrastructure, NSM has empowered researchers from underserved regions to participate in advanced scientific exploration.
To date, users have completed over 1 crore compute jobs on NSM systems and published more than 1,500 research papers in reputed national and international journals.
Additionally, the mission has trained over 22,000 individuals in HPC and Artificial Intelligence (AI) skills, contributing to workforce development and capacity building. Notably, startups and MSMEs are increasingly leveraging these supercomputing assets to accelerate innovation and execute compute-intensive projects, further amplifying NSMs impact on Indias digital and scientific economy.
In 2024, the Prime Minister dedicated three PARAM Rudra supercomputers to the nations young researchers and scientists. Installed in Pune, Delhi, and Kolkata, these systems support cutting-edge research in physics, earth sciences, and cosmology. Built entirely with indigenous components including the "Rudra" HPC servers and a homegrown system software stack these are the first Indian servers on par with global HPC standards.
To further bolster AI research, the government has launched
Project AIRAWAT, which aims to create a unified computing platform accessible to technology innovation hubs, research labs, academia, startups, and industry. Its proof of concept features a 200 AI petaflop mixed-precision system, scalable up to 790 petaflops, making it one of the worlds most powerful AI supercomputing platforms.
Looking ahead, an additional 45 petaflops of HPC infrastructure is planned for FY2025, all based on indigenously developed servers and technologies, continuing Indias push for self-reliant, next-generation computing.
(Source: Press Information Bureau, Company Research)
Indias AI Inflection Point: Infrastructure,
Intelligence & Investment
India is entering a decisive phase in its AI evolution, where policy ambition, digital public infrastructure, and enterprise readiness are converging to unlock transformative value. Once limited to pilots and prototypes, artificial intelligence is now becoming a national capability, with wide-scale implications for productivity, innovation, and economic competitiveness.
AI Spending (US$bn)
The Strategic Vision: Democratising AI at Scale
Backed by the 10,300 crore IndiaAI Mission, the government is catalyzing one of the worlds largest AI ecosystems. This mission supports:
• An open GPU compute cloud, with over 18,000 GPUs being deployed including 10,000 GPUs in phase one.
• Subsidised compute access at 100/hour (vs global averages of US$2.5 3/hour), enabling startups, researchers, and students to access high-performance
AI infrastructure.
• A growing base of 10+ onboarded GPU vendors and early efforts toward indigenous GPU design, signaling long-term autonomy.
Indias AI strategy is deeply embedded in its broader vision of
Viksit Bharat 2047, blending sovereign digital infrastructure, localised AI innovation, and self-reliant compute and semiconductor capacity. The emergence of semiconductor fabs, public AI datasets, and centres of excellence positions India as a nation intent on controlling its technological destiny.
Infrastructure to Intelligence: From DPI to Model Innovation
Indias Digital Public Infrastructure (DPI) comprising Aadhaar,
UPI, DigiLocker, CoWIN, and more, has already transformed public service delivery. Now, AI is being layered onto
DPI to enable smart governance, financial inclusion, and personalised citizen services.
Key Developments include:
• The IndiaAI Dataset Platform, the countrys largest open, anonymised data repository—providing fuel for AI innovation in agriculture, healthcare, logistics, and climate tech.
• Bhashini, Indias national language AI platform, democratising digital access across 22+ Indian languages.
• Integration of AI into real-time platforms like ONDC and UPI, with international traction including Japan granting a patent for UPI.
This DPI+AI model positions India as a public digital utility exporter, with multiple countries showing interest in replicating its governance stack.
GenAI in the Enterprise: From Experiments to Transformation
Enterprises are rapidly moving from experimentation to
GenAI-driven transformation. Enabled by falling compute costs (e.g., GPT model access down ~80% in 2 years), enterprises are embedding LLMs and SLMs across the stack—transforming functions, interfaces, and value chains.
A new AI-native tech stack is emerging:
• SLMs for domain-specific tasks (cost-effective, edge-compatible)
• Embedding of AI into platforms by SAP, Salesforce, Oracle
• Evolution of RPA into intelligent automation with GenAI
• Widespread integration of AI agents for low-code/no-code process flows
This shift is not marginal, GenAI is expected to be delivering:
• 80% productivity gains in call centers
• 61% in software development
• 44 45%% in content, customer service, and marketing
• While even regulated sectors (banking, pharma, healthcare) are entering with measured, high-value use cases
A key enabler here is data readiness and Indias digital firms are maturing quickly.
(Source: Company Research)
Data 4.0: Building the AI-Ready Foundation
Institutional AI success hinges on data: its quality, architecture, accessibility, and governance.
Only 3% of Indian firms are fully data-ready, but significant strides are being made:
• Adoption of modern data stacks (cloud-native pipelines, scalable data lakes, unified storage)
• Development of trusted data catalogs and unified consumption layers to harmonise access across hybrid architectures
• Movement away from siloed data repositories toward frictionless, AI-first architecture
Data 4.0 framework is now guiding many large enterprises to embed agility, trust, and intelligence in their data operations.
Companies nurturing proprietary, contextualised datasets are already seeing superior model performance and faster GenAI ROI.
AI Talent & Workforce: Indias Global Edge
India is positioned as the worlds AI talent engine, with:
• 263% growth in AI talent since 2016
• 16% of global AI talent pool
• #1 globally in AI skills among women
• #2 in GenAI open-source contributions on GitHub
The governments IndiaAI Future Skills program and National
Centres of Excellence are integrating AI into curricula (UG/
PG/PhD), while Tier 2/3 cities are being equipped with data and AI labs.
India is adding one Global Capability Centre (GCC) every week, with most now AI-enabled. The projected need for 1 million AI professionals by 2026 underscores the urgency and opportunity for talent-led innovation.
Compute Capital: AI-Driven High-Performance Computing
As GenAI models grow in size and complexity, High-Performance Computing (HPC) has become a foundational enabler of Indias AI ambitions, powering training, inference, simulation, and edge-scale deployment.
AI-Specific Momentum
• Indias GPU deployment under the IndiaAI Mission 18,693 GPUs, already scaling with 10,000 live, directly supports LLM training and fine-tuning for Indian languages.
• HPC-as-a-Service (HPCaaS) is accelerating enterprise
GenAI adoption, offering scalable compute without capex burdens, especially valuable for startups and mid-market enterprises.
• Indias AI/HPC cloud region launched by AceCloud in Noida is optimised for deep learning workloads, enabling faster model iteration and deployment cycles.
• BFSI, healthcare, and manufacturing are leveraging HPC for AI use cases:
BFSI: Real-time fraud detection and risk modeling
Healthcare: Accelerated diagnostics and drug discovery with GenAI pipelines
Manufacturing: AI-driven simulations and smart factory automation
Government Backing and Sovereignty Play
• The National Supercomputing Mission (NSM) supports indigenous computing infrastructure for AI model development.
• Indias push for indigenous chip design and open GPU marketplaces lowers entry barriers for AI innovation.
• Public-private HPC investments are helping anchor
Indias sovereign AI capabilities, reducing dependence on external compute ecosystems.
In short, HPC is the backbone of Indias GenAI scale-up, enabling faster experimentation, lower latency, and domain-specific AI innovation at national scale.
Growth Drivers: Structural Catalysts Behind Indias AI Surge
Indias AI momentum is supported by a combination of policy, demand-side, talent, and infrastructure catalysts, which together are unlocking a new wave of investment opportunities.
Rising Enterprise AI Spending
• Indias AI market is expected to grow from US$3.74 billion in 2025 to US$9.20 billion by 2028, at a CAGR of 35%.
• More than 80% of enterprises now consider AI a core strategic priority.
• A third of firms plan to spend over US$25 million annually on AI development and deployment.
GenAI Startups and Funding Momentum
• GenAI funding surged 6x year-on-year to US$51 million in Q2 FY2025, driven by B2B SaaS, agentic systems, and vertical AI startups.
• India now hosts over 520 tech incubators, with 42% established in the last 5 years.
AI/ML Driving HPC Demand
• AI/ML, big data, and simulation workloads are accelerating HPC adoption across sectors.
• Digital tech will comprise 40% of manufacturing spend by 2025 (up from 20% in 2021).
• HPC is now a baseline requirement for R&D, product engineering, financial modelling, and healthcare innovation.
Cloud-Based HPC Expanding Access
• The rise of Cloud HPC and HPC-as-a-Service is eliminating barriers for SMBs and research institutions.
• Pay-as-you-go models make HPC accessible for everything from AI model testing to city-scale infrastructure simulations.
Government-Led AI and Compute Ecosystem
• National missions such as IndiaAI, NSM, and the Semiconduc tor Mission are building foundational infrastructure.
• The government is fostering strategic autonomy through public GPU marketplaces, indigenous chip design, and open data initiatives.
Sector-Wide AI Adoption
• AI is now embedded in logistics, agriculture, BFSI, healthcare, pharma, retail, and education.
• For SMBs, 78% report revenue increases attributed to AI tools, indicating mass-market adoption is underway.
(Sources: Press Information Bureau, Ministry of Electronics and Information Technology, Company Research)
Conclusion: An Investable AI Flywheel
India is no longer just a beneficiary of global AI trends; it is becoming a multiplier. A unique mix of scale, frugality, public infrastructure, open-source participation, and startup velocity is creating an AI economy with long-term compounding potential.
For institutional investors, the roadmap is clear:
• Indias AI and HPC infrastructure is de-risked and state-backed
• A growing base of trained talent and open datasets will continue to reduce development cycles and costs
• The rise of sector-specific AI platforms and public-private innovation clusters ensures that value capture is not limited to a few firms
Indias approach is not to replicate Silicon Valley—it is to redefine global AI leadership on sovereign, inclusive, and scalable terms.
(Sources: Press Information Bureau, Ministry of Electronics and Information Technology, Company Research)
Indian Private Cloud and HCI Market Overview
The Indian private cloud and HCI market size is anticipated to have reached US$3,875.7 million in FY2025 as against US$1,454 million in FY2019, growing at a CAGR of 18% over the forecasted period.
Indian Private Cloud and HCI Market by Application (US$ in mn)
Particulars |
Market Size |
CAGR |
|||
| FY19 | FY25 | FY29 | FY19-FY25 | FY25-FY29 | |
| Others | 486.1 | 1,243.7 | 2,407.9 | 16.9% | 18.0% |
| Oil & Gas | 100.9 | 268.7 | 560.5 | 17.7% | 20.2% |
| Media | 129.1 | 334.8 | 701.3 | 17.2% | 20.3% |
| Telecommunications | 119.4 | 316.3 | 662.6 | 17.6% | 20.3% |
| IT & ITES | 347.3 | 864 | 1,665.1 | 16.4% | 17.8% |
| BFSI | 74.9 | 287.5 | 806.1 | 25.1% | 29.4% |
Government & Defence |
196.5 | 560.7 | 1,203.8 | 19.1% | 21.0% |
Indian Private cloud and HCI Market |
1,454 | 3,875.7 | 8,007.3 | 17.7% | 19.9% |
The growth of both private cloud and hyperconverged infrastructure (HCI) markets in India is being driven by the rising demand for scalable, secure, and agile IT environments amid accelerating digital transformation across industries. Enterprises are increasingly shifting towards private cloud for greater data control, regulatory compliance, and improved security, especially with the data localisation mandates gaining momentum.
Simultaneously, the need for simplified, cost-effective infrastructure is boosting the adoption of HCI, which integrates computing, storage, and networking into a single platform. Together, both technologies are being propelled by hybrid cloud strategies, the rise of edge computing, and the need to support AI, analytics, and mission-critical workloads, all underpinned by growing investments in domestic data centres and IT modernisation. AI as an Emerging Driver of
Private Cloud and HCI Adoption
As AI adoption accelerates across Indian enterprises, private cloud and HCI are becoming foundational infrastructure layers for AI workloads. Organisations are deploying private
GPU clusters and hyperconverged systems to handle the training, fine-tuning, and inferencing of LLMs and industry specific AI applications.
Private cloud environments offer greater control, lower latency, and improved data governance, critical for sectors handling sensitive information, such as banking, telecom, and healthcare. HCIs unified architecture enables the co-location of compute and storage, accelerating data throughput and simplifying edge AI deployment.
To meet the performance needs of modern AI workloads, these platforms are evolving to include:
• AI accelerators (GPUs, TPUs, FPGAs) embedded in private cloud environments
• HCI stacks optimised for container orchestration (e.g.,
Kubernetes) and AI/ML frameworks like TensorFlow and PyTorch
• Native support for data lakehouses and real-time data ingestion pipelines, which are essential for low-latency inference and continuous learning systems
As a result, AI-centric enhancements are transforming private cloud and HCI into key enablers of Indias enterprise
AI transformation, providing the performance, security, and flexibility needed to operationalise AI at scale.
Together, these factors are contributing towards an overall market size of US$8,007.3 million by FY2029, increasing at a CAGR of 20% over the forecasted time period (FY2025 to FY2029).
Demand Driving Trends
Cost Efficiency and Scalability
Private cloud adoption in India is being driven by the need for predictable operational costs and scalable infrastructure.
Organisations are shifting from capital-intensive IT setups to operational expenditure models, leveraging private clouds flexibility.
Data Localisation and Regulatory Compliance
Compliance with data protection and localisation laws is a major catalyst for private cloud adoption in India. Regulated sectors such as banking, insurance, healthcare, and government institutions are increasingly deploying private clouds to ensure data residency within India and meet sector-specific norms.
Digital Transformation across Key Sector
Digital transformation initiatives under programs like Digital India are reshaping IT infrastructure across sectors. Industries such as BFSI, healthcare, telecom, retail, and government are rapidly modernising their operations through cloud-based solutions. Private cloud offers a secure, high-performance foundation for organisations handling sensitive workloads, enabling them to digitise while retaining control over data, security, and application integration.
Security, Reliability and Performance Demands
A number of enterprises are turning to private cloud solutions to meet rising expectations for data security, low latency, and operational reliability. These requirements are especially critical for workloads in 5G telecom networks, financial services, and distributed enterprise applications. Private clouds offer improved isolation, network control, and customisation capabilities, making them preferable for mission-critical deployments where the public cloud may fall short.
Indian Data Centre Server Market Overview
Indias Data Centre Evolution: Scaling for AI, Cloud, and Strategic Digital Demand
Indias data centre ecosystem is undergoing a structural transformation, powered by the exponential growth of AI workloads, expanding cloud adoption, and strong policy tailwinds such as data localisation mandates and the IndiaAI Mission. As enterprises and hyperscalers invest in compute-intensive applications, India is emerging as a next-generation data hub for the region, bridging the Middle East and Southeast Asia.
Demand Driving Trends
AI-Optimised Infrastructure Driving Server Demand
The proliferation of AI and GenAI workloads is reshaping data centre design, triggering demand for high-performance, GPU-powered servers, efficient cooling systems, and scalable compute infrastructure. Investments in AI-optimised facilities, such as Reliances Nvidia-backed centre in Gujarat and upcoming hyperscaler campuses in Telangana and Maharashtra, highlight Indias rising relevance in global AI infrastructure.
AI-specific demands are also redefining rack density and server architecture. With models like DeepSeek operating efficiently at lower rack power (~12 20KW), Indias existing lower-density data centres (6 12KW/rack) can be upgraded to handle GenAI inference loads, making the upcoming DC capacity AI-ready without disproportionately increasing costs.
Green Data Infrastructure Gains Momentum
Sustainability is a parallel driver, as energy-intensive AI applications push demand for green data centres powered by renewables, liquid cooling, and AI-based energy management. Projects like Maharashtras three 500MW green DC parks signal a shift toward carbon-conscious infrastructure, aligned with Indias net-zero vision.
Rising Data Centre Capacities
Indias data centre capacity stood at ~1.4 GW in FY2024, just 5.5% of global DC capacity, despite India generating 20% of global data. To catch up, capacity is projected to reach 17 GW by 2030, growing at a 53.4% CAGR from 2.0 GW in FY2025, highlighting rapid development in the sector.
This expansive growth is supported by a nationwide buildout in hubs like Mumbai, Bengaluru, Chennai, Delhi-NCR, and increasingly in edge locations to support latency-sensitive
AI workloads.
This expansion is driven by soaring demand from cloud service providers (CSPs) and the growing artificial intelligence (AI) sector, both requiring vast infrastructure and computational power. India is solidifying its role as a global digital infrastructure leader, with CSPs accounting for 54% of user demand in late 2024, alongside significant contributions from BFSI and technology sectors. This expansion is nationwide, focused on hubs such as Mumbai,
Bengaluru, Delhi and Chennai. The global AI and machine learning surge fuelled a 27% year-on-year increase in data centre absorption in 2024.
Indias Emerging Advantage as a Regional Data Hub
India is well-positioned to become a dominant force in the global data centre market, driven by its growing AI readiness and policy ambition. The IndiaAI Mission, with its focus on enabling widespread AI adoption, aligns closely with the countrys goal of building a US$ 1 trillion digital economy.
Indias edge lies in a combination of favourable unit economics, including lower capex per MW (~465 million), reduced operating costs, and access to skilled digital talent, along with rapidly improving sub-sea cable connectivity.
These structural advantages, coupled with rising investment in AI-optimised infrastructure, position India not only to meet growing domestic digital demand but also to serve as a regional hub for AI and cloud workloads across Asia and beyond.
While geopolitical constraints such as potential US technology transfer policies may pose short-term challenges, Indias trajectory remains strong, backed by policy, capital, and growing enterprise readiness.
(Source: IMARC Group, Jeffries)
Indian Enterprise Storage Systems Market Overview
Indias enterprise storage systems market was valued at
US$ 778.1 million in FY2025 and is expected to reach US$ 947.3 million by FY2029, growing at a CAGR of 5% from FY2025 to FY2029. This robust growth is driven by accelerated digital adoption, data localisation mandates, and rising demand for cloud computing across sectors. The expansion of e-commerce, fintech, and 5G networks, coupled with increased investments in data centres and AI-powered analytics, is further fuelling the need for secure, scalable storage solutions to support
Indias fast-evolving digital economy.
Indian Enterprise Storage Systems Market Overview (US$ in mn)
Particulars |
Market size |
CAGR |
|||
| FY19 | FY25 | FY29 | FY19-FY25 | FY25-FY29 | |
| Others | 20.1 | 31.8 | 42.6 | 7.9% | 7.6% |
| Oil & Gas | 46.9 | 54.5 | 66.3 | 2.5% | 5.0% |
| Media | 33.5 | 36.5 | 42.6 | 1.4% | 3.9% |
| Telecommunications | 100.5 | 130.2 | 170.5 | 4.4% | 7.0% |
| IT & ITES | 134.0 | 146.1 | 170.5 | 1.5% | 3.9% |
| BFSI | 214.5 | 229.8 | 265.3 | 1.2% | 3.7% |
| Government & Defence | 120.6 | 149.2 | 189.5 | 3.6% | 6.2% |
India Enterprise Storage |
670.1 | 778.1 | 947.3 | 2.5% | 5.0% |
Systems Market |
|||||
Demand Driving Trends
Digital Transformation and Data Explosion
The rapid digital transformation across Indias sectors like retail, banking, healthcare, and entertainment has triggered an unprecedented data explosion. Moreover, growth in e-commerce, social media, online payments, and streaming platforms has dramatically increased data traffic, resulting in a necessity for data storage.
Rising Adoption of Cloud Computing and Hybrid Storage Solutions
A major driver of Indias data storage market is the rising adoption of cloud and hybrid storage by businesses of all sizes. As digital transformation accelerates, enterprises seek scalable, cost-efficient storage without heavy infrastructure investment.
Regulatory Compliance and Data Localisation
Government initiatives, such as the Reserve Bank of Indias (RBI) launch of the Indian Financial Services (IFS) Cloud, aim to enhance data security and ensure compliance with data localisation regulations, thereby driving the demand for enterprise-grade storage solutions.
Infrastructure Modernisation
Organisations are upgrading legacy storage infrastructures to modern systems, including all-flash arrays and software-defined storage, to improve performance, reduce latency, and achieve cost efficiencies.
Expansion of Data Centres
Significant investments by global tech giants in building data centres across India are bolstering the storage infrastructure, facilitating faster data access, and supporting the growing cloud ecosystem.
Data Readiness and AI-Driven Storage Demand
As enterprises accelerate AI adoption, data readiness is becoming a key priority. In line with Data 4.0 principles, organisations are modernising storage to support real-time ingestion, AI workloads, and governance-compliant data pipelines.
The rise of GenAI and advanced analytics is driving demand for High Performance Storage (HPS), particularly all-flash and NVMe systems that offer low latency, high throughput, and seamless integration with AI frameworks and hybrid cloud environments.
With initiatives like the India AI Mission, enterprise storage is evolving from a back-end utility to a strategic enabler of AI scalability and digital competitiveness.
(Source: IMARC Group)
Indian Cloud Managed Services Market Overview
The Indian cloud managed services market size was expected to have stood at US$1,698.6 million in FY2025 and is expected to reach US$3,900.7 million by FY2029, growing at a CAGR of 23.1% over the forecasted period. The growing demand for cloud managed services is being driven by several key factors, including widespread cloud adoption and rising IT infrastructure, each playing a vital role in the markets strong expansion.
India Cloud Managed Services Market by Applications (US$ in mn) – FY 2019-2029F
Particulars |
Market size |
CAGR |
|||
| FY19 | FY25 | FY29 | FY19-FY25 | FY25-FY29 | |
| Others | 166.0 | 570.9 | 1,287.2 | 22.9% | 22.5% |
| Oil & Gas | 34.2 | 118.9 | 273.0 | 23.1% | 23.1% |
| Media | 43.9 | 147.7 | 331.6 | 22.4% | 22.4% |
| Telecommunications | 39.1 | 130.7 | 292.6 | 22.3% | 22.3% |
| IT & ITES | 117.2 | 386.9 | 858.1 | 22.0% | 22.0% |
| BFSI | 24.4 | 112.6 | 312.1 | 29.0% | 29.0% |
| Government & Defence | 63.5 | 230.9 | 546.1 | 24.0% | 24.0% |
India Enterprise Storage |
488.3 | 1,698.6 | 3,900.7 | 23.1% | 23.1% |
Systems Market |
|||||
Demand Driving Trends
Widespread Cloud Adoption across Industries
Organisations across the sectors are increasingly embracing cloud computing for its scalability, flexibility, and cost-efficiency. This surge in cloud usage creates a strong for expert cloud environment management.
Rising IT Inf rastructure Complexity
As enterprise IT ecosystems grow more complex, managing them internally becomes resource-intensive. Therefore, specialised support from cloud managed service providers (MSPs) is essential to ensure stability and performance.
Need for Technical Expertise
Businesses face challenges in navigating advanced cloud technologies and integrations. MSPs solve this issue by providing critical technical expertise that helps organisations optimise cloud operations and reduce downtime.
Accelerating Digital Transformation
The fast-paced digital shift is compelling organisations to adopt strategic IT partnerships. Cloud managed services offer the agility and innovation needed to stay competitive and future-ready.
Heightened Cybersecurity Concerns
With increasing cyber threats, businesses are prioritising robust security frameworks. This problem is resolved by entrusting cloud environments to MSPs that help enhance security posture and mitigate risks through proactive monitoring.
(Source: IMARC Group)
Indian Enterprise Networking Overview
The Indian enterprise networking market size stood at
US$1,593.3 million in FY2025 and is anticipated to reach 1,984.1 million by FY2029, growing at a CAGR of 5.6%.
India Enterprise Networking Market (US$ in mn) by product type – FY 2019- 2029F (historical and estimated years)
Particulars |
Market size |
CAGR |
|||
| FY19 | FY25 | FY29 | FY19-FY25 | FY25-FY29 | |
| WLAN | 192.1 | 346.8 | 436.5 | 10.3% | 5.9% |
| Routers | 223.7 | 415.9 | 535.7 | 10.9% | 6.5% |
| Ethernet Switches | 485.7 | 830.7 | 1,011.9 | 9.4% | 5.1% |
India Enterprise |
901.5 | 1,593.3 | 1,984.1 | 10.0% | 5.6% |
Networking Market |
|||||
Demand Driving Trends
Government Initiatives and Cloud Adoption
Government programmes like the National Broadband Mission aim to provide universal broadband access, thereby expanding the digital infrastructure. Such initiatives are fostering the growth of enterprise networking by improving connectivity and encouraging digital inclusion across the country.
Rise in Remote Work and Hybrid Work Models
The increasing prevalence of remote and hybrid work arrangements has led to a surge in demand for secure and reliable networking solutions. Enterprises are investing in advanced networking technologies to ensure seamless connectivity and collaboration among distributed teams.
Advancements in Networking Technologies
The evolution of networking technologies, including the adoption of Wi-Fi 6, SD-WAN and AI-driven network management, is enhancing network performance and reliability. These advancements are enabling enterprises to manage complex networks more efficiently, driving the adoption of modern networking solutions.
Growth of Data Centres and Cloud Services
The expansion of data centres and the increasing reliance on cloud services are fuelling the need for high-performance networking infrastructure. As data traffic grows, enterprises require scalable and robust networks to support data-intensive applications and services.
Increased Focus on Cybersecurity
With the rise in cyber threats, enterprises are prioritising the security of their networks. The demand for secure networking solutions is driving the adoption of advanced security protocols and infrastructure to protect sensitive data and ensure compliance with regulatory standards.
(Sources: Markets and Markets, Polaris Market Research)
Company Overview
Netweb Technologies India Ltd. is a leading provider of high-end computing solutions (HCS) in India, offering fully integrated design and manufacturing capabilities. The
Companys HCS portfolio includes:
• High-performance computing (supercomputing/ HPC) systems
• Private cloud and hyperconverged infrastructure (HCI)
• AI systems and enterprise workstations
• High-performance storage (HPS/enterprise storage system) solutions
• Data centre servers
• Software and services for HCS offerings
In terms of the number of HPC installations, the Company ranks among the leading OEMs in India. Since its inception, Netweb Technologies has deployed: (i) 500+ supercomputing systems
(ii) 50+ private cloud and HCI installations
(iii) 5,000+ accelerator/GPU-based AI systems and enterprise workstations
(iv) HPS solutions with throughput storage of up to 450
GB/s.
The Company serves a distinguished clientele across a wide range of end-user industries, including information technology (IT), IT-enabled services (ITeS), entertainment and media, banking, financial services and insurance (BFSI), and national data centres. It also provides solutions to various government bodies, including those in the defence sector, as well as educational and research institutions. Notable clients in these application domains include Indian
Institute of Technology (IIT) Jammu, IIT Kanpur, NMDC Data Centre Private Limited, Airamatrix Private Limited,
Graviton Research Capital LLP, Institute of Nano Science and Technology (INST), HL Mando Softtech India Private
Limited, Dr. Shyam Prasad Mukherjee International Institute of Information Technology (IIIT) Naya Raipur, Jawaharlal Nehru University (JNU), Hemvati Nandan Bahuguna Garhwal University, Akamai India Networks Private Limited, A.P.T. Portfolio Private Limited, Yotta Data Services Private Limited, the Centre for Computational Biology and Bioinformatics, and the Central University of Himachal Pradesh (CUHP).
The Company also serves as a premier Indian government space research organisation, along with an R&D organisation under the Ministry of Electronics and Information Technology, Government of India, which focuses on advancing R&D in information technology, electronics, and allied fields.
Netweb Technologies designs, manufactures, and deploys high-end computing solutions (HCS) that integrate proprietary middleware, end-user utilities, and pre-compiled application stacks. It develops indigenous computing and storage technologies and delivers supercomputing infrastructure tailored to the growing computational needs of businesses, academic institutions, and research organisations, particularly under the ambit of Indias National Supercomputing Mission. Notably, three of its supercomputers have been featured a total of 15 times in the global Top 500 list of the worlds most powerful supercomputers.
Through the years, the Company has designed, developed and deployed several advanced supercomputing systems in India:
Supercomputer |
Year of Deployment | Teraflops (Rpeak) User | Speed in | Speed in Teraflops (Rmax) | Particulars |
AIRAWAT |
2023 | Centre for Development of Advanced Computing, India (CDAC) | 13,169.86 | 8,500 | Ranked #75th in the world and puts India on top of AI supercomputing nations worldwide. |
| Included in the 61st edition of the Top 500 Global Supercomputing List, released in June 2023. It is also Indias largest and fastest AI supercomputing system | |||||
Agastya |
2020 | Indian Space Research Organisation (ISRO), Government of India | 256.00 | 161.00 | At the time of commissioning, it was Indias 27th fastest supercomputer. |
PARAM Ambar |
2019 | National Institute of Science Education and Research (NISER), Bhubaneshwar | 1,384.85 | 919.61 | At the time of commissioning, it was Indias 4th fastest supercomputer. |
Supercomputer |
Year of Deployment | User |
Speed in Teraflops (Rpeak) | Speed in Teraflops (Rmax) | Particulars |
Hartree |
2018 | National Institute of Science Education and Research (NISER), Bhubaneshwar | 51.90 | 38.87 | At the time of commissioning, it was Indias 29th fastest supercomputer. |
Kalinga Upgrade |
2016 & 2020 | NISER, Bhubaneshwar | 249.37 | 161.42 | At the time of commissioning, it was Indias 26th fastest supercomputer. |
Kohinoor 3 |
2016 | TIFR-TCIS, Hyderabad | 70.85 | 43.59 | At the time of commissioning, it was Indias 20th fastest supercomputer. |
PARAM YUVA-II |
2013 | Centre for Development of Advanced Computing, India (CDAC) | 529.38 | 386.71 | At the time of its commissioning, it was the 69th most powerful supercomputer in the world. |
Kabru |
2004 | The Institute of Mathematical Sciences, Chennai | 1.38 | 1.00 | The Companys first supercomputing system was then one of the top 500 most powerful supercomputing systems in the world. |
Rpeak maximum theoretical performance Rmax maximum performance achieved
1 teraflop = One trillion (1012) floating-point operations per second
(Source: Frost and Sullivan) #At the time of commissioning
In 2023, the Company expanded its product portfolio by entering into the development of network switches and 5G ORAN (Open Radio Access Network) appliances. These technologies are vital to the data centre ecosystem, supporting enterprise IT, and to the telecommunications sector in enabling 5G services. This strategic move aims to (i) address the significant gap in the Indian network switch market, which currently has a limited presence of domestic OEMs, and (ii) reduce Indias reliance on foreign manufacturers.
The growing adoption of high-throughput, low-latency network switches in data centres and 5G networks is accelerating rapidly, driving the need for enhanced security, reliability, and operational efficiency with minimal latency
(Source: F&S Report)
The Company has recently deployed 5G Cloud solutions at both the core and edge levels for an international telecommunications service provider.
The Companys operations are centered at a state-of-the-art manufacturing facility in Faridabad, Haryana, equipped to design, develop, manufacture, and test its hardware products, while also supporting its software and services portfolio. In addition to its registered office in Faridabad, the Company maintains a nationwide presence through 16 offices across India.
The manufacturing facility is certified under ISO
9001:2015 (Quality Management System), ISO 14001:2015 (Environmental Management System), and ISO/IEC 27001:2013 (Information Security Management System) by International Benchmarking & Certifications.
Netweb Technologies extensive product and solution offerings are driven by its dedicated research and development (R&D) teams based in Faridabad and Gurgaon,
Haryana, and Hyderabad, Telangana. As of May 31, 2025, the
R&D team comprised professionals.
The Company aligns with the Government of Indias Make-in-India initiative and is among the select original . equipment manufacturers (OEMs) eligible for incentives under the Production-Linked Incentive (PLI) Scheme 2.0 for
IT Hardware, which includes server manufacturing. It is also eligible under the PLI Scheme for Promoting Telecom and Networking Products Manufacturing in India.
Netweb Technologies collaborates with several global technology leaders, including NVIDIA Corporation, Intel
Americas, Inc., Advanced Micro Devices, Inc. (AMD), Samsung India Electronics Private Limited, and Seagate India Private
Limited. These partnerships support the co-development of innovative products and services tailored to specific customer needs. Moreover, the Company independently designs and develops customised solutions to meet unique client requirements.
Product Portfolio: Our HCS Offerings
Segment-wise revenue
Product Category |
2023-24 (million) | Revenue share (%) | 2024-25 (million) | Revenue share (%) |
| AI Systems and Enterprise Workstations | 799.00 | 11.0% | 1693.84 | 14.82% |
| Data Centre Server | 337.05 | 4.7% | 372.84 | 3.26% |
| HCS Focused Software and Service | 175.72 | 2.4% | 455.36 | 3.98% |
| High-performance Storage (HPS) Solutions | 339.10 | 4.7% | 274.71 | 2.40% |
| HPC (supercomputing system) | 2,623.59 | 36.2% | 4054.90 | 35.47% |
| Others (Spare Sale) | 289.63 | 4.0% | 429.29 | 3.76% |
| Private Cloud and HCI | 2,643.83 | 36.5% | 4026.53 | 35.23% |
| Networking Switches | 32.76 | 0.5% | 123.48 | 1.08% |
Grand Total |
7,240.68 | 100.0% | 11430.94 | 100.00% |
Netweb Technologies offers a comprehensive suite of high-end computing solutions (HCS) under its flagship ‘Tyrone brand, which has evolved and expanded significantly over the years. The current solutions portfolio includes:
Supercomputing Systems: Custom-built hardware with scalable configurations supporting up to 1,000 nodes, powered by the proprietary ‘Tyrone cluster management suite.
Private Cloud and HCI: Tyrone Skylus integrates compute, storage, and networking, positioning itself as a strong competitor to leading international HCI vendors.
AI Systems and Enterprise Workstations: Engineered for supercomputing, machine learning, and deep learning workloads, these systems feature the proprietary Tyrone
KUBYTS platform.
HPS Solutions: High throughput, scalable, and highly available storage systems such as Tyrone Verta, Collectivo and ParallelStor.
Data Centre Servers: A diverse range of over 200 server models under the ‘Tyrone Camarero line, spanning entry-level to high-end configurations with storage capacities up to 1 petabyte.
Software and Services for HCS Offerings: The Company delivers a robust private cloud software stack built on Kubernetes, along with AI/ML and big data services powered by the Tyrone Camarero and Collectivo platforms.
Furthermore, Netweb Technologies big data-centric solutions leverage Tyrone Camarero dense systems, the Tyrone Cluster Management Suite, and the Tyrone Collectivo series of specialised storage platforms, which are designed to support data-intensive, distributed applications within a unified architecture.
All ‘Tyrone-branded products and solutions are backed by Netwebs engineered systems and service capabilities.
Growth Strategies
1. Robust Business Pipeline: The company continues to maintain a strong business pipeline and order book.
Continuous enhancements in its capabilities, along with the expansion of its operations and product portfolio, position the Company well for sustained growth while preserving its technological leadership in the industry.
2. AI Opportunity: As organisations increasingly adopt generative, predictive and interpretive AI, supported by significant contributions from the global AI developer community across a wide range of innovative use cases, India is emerging as the AI factory of the world. This creates substantial opportunities for the company to broaden and diversify its product offerings.
3. New Manufacturing Facility: Netwebs new state-of-the-art manufacturing facility in Faridabad, operational since May 10, 2024, significantly strengthens its production capabilities for high-end servers, storage systems, and network switches. The facility supports
PCB design, manufacturing, and Surface-Mount
Technology (SMT) for advanced servers, utilising the latest NVIDIA, Intel, and AMD chips in line with the "Make in India" initiative. This expansion enhances Netwebs presence in high-performance computing, private cloud and HCI, AI Systems and data centre markets, underlining its commitment to innovation, growth, and self-reliance in Indias technology sector.
4. Partnership with NVIDIA: The Company has formed a strategic partnership with NVIDIA as a select manufacturing OEM for the NVIDIA Grace CPU
Superchip and GH200 Grace Hopper Superchip MGX server designs. This collaboration aims to unlock the full potential of AI and high-performance computing in India. Under this partnership, Netweb Technologies will develop and manufacture more than ten variations of servers within its Tyrone AI systems range, catering to a broad spectrum of AI and supercomputing applications.
5. Domestic Demand and Make in India Strategy: The
Company received a claim of 59.4 million under the Production Linked Incentive (PLI) Scheme 2.0 for IT hardware, highlighting strong government support.
All products are designed and manufactured in-house, demonstrating a solid alignment with the ‘Make in India initiative, which remains a cornerstone of the Companys domestic growth strategy.
6. Focus on Core Verticals: The Company maintains a strong focus on three core pillars: high-performance computing (HPC), private cloud (hyper-converged infrastructure or HCI), and AI systems. HPC and private cloud combined contribute 70% of the total revenue and are expected to maintain a steady contribution of around 80% each over the next few years, underscoring their critical role in the companys growth strategy.
7. Rising Demand for High-end Computing: The booming inbound data centre market across India has created substantial demand for high-performance computing resources.
8. Export Growth: Exports contributed 5.5% of the revenue in FY2025. While the Company plans to gradually expand its export footprint, it remains cautious to ensure that adequate support infrastructure is in place to sustain this growth. Despite this, the domestic demand continues to be the primary driver of overall growth.
9. Increasing Demand for on Premise AI Sovereign Cloud: There is a growing need for on-premise AI sovereign cloud solutions to support modern data and
AI workloads securely and efficiently.
10. Scalable Systems and Operational Efficiency:
Operational efficiency has been enhanced through the implementation of SAP S/4 HANA, which improves real-time control and governance across the organisation.
Financially, the company enjoys a zero net-debt status and a robust free cash position, providing a solid foundation for future expansion plans.
Key Business Developments (to be provided by the client for FY2025)
Awards and Accolades
Over the years, Netweb Technologies has been consistently recognised with a series of prestigious awards and accolades, reflecting its unwavering commitment to excellence, innovation and industry leadership. These achievements acknowledge the Companys continuous drive for technological advancement and its dedication to delivering high-quality, cutting-edge solutions to clients. Netweb takes pride in these recognitions, which affirm its position as a distinguished leader in the technology sector.
2017: Partner Performance Award - Data Center Group at the Intel Solutions Summit 2017 MACAU
2017: Intel Technology Provider Platinum 2017
Retailer Specialist
2018: Intel Technology Provider Platinum 2018 Best HPC Data reaffirmed the Center Specialist
2019: Partner of the Year Data Center Group at the Intel Partner Connect Asia 2019
2020: Seagate Certificate for Appreciation In Recognition for a Record of Outstanding Accomplishments 2020: In recognition of outstanding contribution towards growing
AMD EPYC Business H1 for FY20
2021: Top Software Tools Bundled with IA Partner of the Year 2021 at the Intel Software India Partner Summit, 2021 2021: Partner of the Year 2021, System Integrator by Seagate
2021: Outstanding Contribution in Promotion of electronics and manufacturing of servers Ministry of Electronics and Information Technology, Government of India, Celebration of Azadi ka Amrit Mahotsav
2022: MAIT Indias Apex Industry body empowering IT,
Telecom and Electronics and Hardware for outstanding leadership and guidance to the Electronics Industry of India
2022: Best "Software Tools Bundled with IA" Partner for 2022 by Intel Developer Tools Summit 2022
2023: Awarded by Government e-Marketplace as a winner in "Top Sellers (MSE)" Category
2024: NVDIA Enterprise Partner of the Year
2024; Intel 2024 Partner Award for Outstanding Growth
(Data Canter & AI Group)
Credit Rating
InFY2025,CRISIL(aS&PGlobalCompany) Companys long-term rating as A-/ Stable and short-term rating as A2+.
Dividend Payout
With the Companys listing in July 2023, the Board of
Directors formalised a dividend policy which is in line with good corporate governance practices. Some of the salient features of the policy are:
• Follow a consistent dividend policy that balances the objective of appropriately rewarding shareholders through dividends and to support future growth.
• Consider financial parameters like earnings outlook, future capex requirements, liquidity and cash flow positions, inorganic growth opportunities etc.
• Consider external factors like economic environment, business cycle, changes in government policies, industry specific rulings and regulatory provisions, statutory restrictions tec.
• For FY2025, in line with the guidelines of dividend policy, the Board of Directors recommended a total dividend of
2.5 per share.
• For detailed perspective on dividend policy, please refer to the Companys website at www.netwebindia.com.
FINANCIAL HIGHLIGHTS
Profit & Loss
Particulars |
For the year ended March 31, 2025 | For the year ended March 31, 2024 |
I Income |
||
| Revenue from operations | 11,490.21 | 7,240.75 |
| Other income | 93.90 | 118.87 |
Total income (I) |
11,584.11 | 7,359.62 |
II Expenses |
||
| Cost of materials consumed | 9,117.84 | 5,638.12 |
| Change in inventories of finished goods and work-in-progress | (292.44) | (192.67) |
| Employee benefits expense | 621.27 | 500.44 |
| Finance costs | 40.90 | 62.08 |
| Depreciation and amortisation expenses | 113.43 | 62.52 |
| Other expenses | 443.43 | 269.57 |
Total expenses (II) |
10,044.43 | 6,340.06 |
III Profit before exceptional items and tax (I - II) |
1,539.68 | 1,019.56 |
IV Exceptional items (net) |
Particulars |
For the year ended March 31, 2025 | For the year ended March 31, 2024 |
V Profit before tax (III + IV) |
1,539.68 | 1,019.56 |
VI Tax expense |
||
| (a) Current tax | 400.55 | 256.65 |
| (b) Adjustment of tax relating to earlier period | 1.50 | 0.50 |
| (c) Deferred tax charge / (Credit) | (7.12) | 3.38 |
Total tax expense |
394.93 | 260.53 |
VII Profit for the year (V - VI) |
1,144.75 | 759.03 |
VIII Other comprehensive income |
||
| Items that will not be reclassified to Profit or Loss: | ||
| - Re-measurement gains / (losses) on defined benefit | 0.19 | (23.41) |
| - Income Tax relating to Items that will not be reclassified to Profit or Loss | (0.05) | 5.89 |
Total other comprehensive income for the year (net of tax) |
0.14 | (17.52) |
IX Total comprehensive income for the year (VII + VIII) |
1,144.89 | 741.51 |
X Earnings per equity share (EPS) |
||
| Basic (in ) | 20.25 | 13.91 |
| Diluted (in ) | 20.24 | 13.88 |
| Face value per share (in ) | 2.00 | 2.00 |
Total Income
The Companys total income increased by 57.4% from 7,359.62 mn in FY2024 to 11,584.11 mn in FY2025, primarily driven by a 58.7% year-on-year increase in revenue from operations, which rose from 7,240.75 mn to 11,490.21 mn. This includes income of 59.4 mn recognised under the PLI Scheme 2.0. Meanwhile, other income declined by
21.0%, from 118.87 mn in FY2024 to 93.90 mn in FY2025, primarily due to lower interest income and reduced gains from currency exchange rate fluctuations.
Revenue from Operations
The Company achieved a significant milestone in FY2025, with revenue from operations increasing by 58.7% year-on-year to 11,490.21 mn, up from 7,240.75 mn in FY2024. This strong growth was driven by significant demand across business segments High Performance Computing (HPC), Private Cloud & Hyper-Converged Infrastructure (HCI), and AI systems and Workstations — along with continued traction in data centre servers and Software and Services for High-end Computing Solutions (HCS). Revenue from Sale of Products grew by 55.4% to 10,975.45 mn in FY2025, up from 7,064.96 mn in FY2024, led by a 54.6% increase in HPC (from 2,623.59 mn to 4,054.90 mn), a 52.3% increase in Private Cloud & HCI (from 2,643.87 mn to 4,026.53 mn), and a 112.0% increase in AI systems and Workstations (from 799.00 mn to 1,693.84 mn). Revenue from data centre servers grew by 10.6%, from 337.00 mn to 372.49 mn, while High-Performance Storage Solutions declined by 18.9%, from 339.00 mn to 274.83 mn. Software and Services for High-end Computing Solutions (HCS) recorded a 159.1% increase, from 175.72 mn to 455.36 mn, reflecting increased adoption of integrated, value-added offerings across enterprise and institutional clients.
Other Income
Other income in FY2025 stood at 93.90 mn, modestly lower from 118.87 mn in FY2024, primarily on account of decline in interest income from bank deposits from 80.56 mn in FY24 to 72.71 mn in FY25 and reduction in gains from currency exchange rate fluctuations from Rs 29.33 mn in FY24 to Rs 8.25 mn in FY25
Expenses
The Companys total expenses increased by 58.4 % from 6,340.06 mn in FY2024 to 10,044.43 mn in FY2025, 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 5,445.45 mn to 8,825.40 mn, reflecting the strong uptick in demand across HPC, AI, and Private Cloud Infrastructure deployments (ii) an increase in employee benefits expense from 500.44 mn to 621.27 mn, driven by talent acquisition across all company locations and (iii) an increase in other expenses from 269.57 mn to 443.43 mn, primarily due to increased business activity, travel, professional consultancies, and operational scaling.
Cost of Materials Consumed
The Companys cost of materials consumed increased by 61.72% from 5,638.12 mn in FY2024 to 9,117.84 mn in FY2025. 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 192.67 mn in FY2024 to 292.44 mn in FY2025. This increase was primarily reflected the elevated volume of customer order executions and ongoing billing cycles.
Employee Benefits Expense
The Companys employee benefits expense increased by 24.1 % from 500.44 mn in FY2024 to 621.27 mn in FY2025, driven by talent acquisition across R&D, AI, and Cloud Service Verticals, as well as Sales, Corporate, Manufacturing and
Operations teams This includes (i) an increase in salaries and wages from 357.79 mn to 541.12 mn attributable to an increase in the number of permanent employees from
362 to 441, underlining our 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 128.53 mn in FY2024 to 51.75 mn in FY2025.
Finance Costs
The Companys finance costs decreased by 34.1 % from 62.08 mn in FY2024 to 40.90 mn in FY2025, primarily due to (i) decrease in interest on borrowings from 40.12 mn to
16.35 mn, (ii) marginal increase in interest on lease liabilities from 5.93 mn to 6.81 mn, reflecting expanded operational infrastructure, (iii) decrease in interest on others from 9.69 mn to 4.57 mn, and (iv) increase in other borrowing costs from 6.34 mn to 13.17 mn.
Depreciation and Amortisation Expenses
The Companys depreciation and amortisation expenses increased by 81.4 % from 62.52 mn in FY2024 to 113.43 mn in FY2025, reflecting ongoing investments in 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 417.83 mn in FY2024 to 556.04 mn in FY2025, driven by (i) an increase in gross carrying value of the Plant and Equipment by Rs. 63.68 mn, Buildings by 21.66 mn, Furniture and Fixtures by 15.06 mn, Office Equipment 7.49 mn, Computers by 17.40 mn and Vehicles by 10.41 mn, (ii) increase in gross carrying value of other Intangible Assets by 0.85 mn, and (iii) increase in carrying amount of right-to-use assets by 7.75 mn. As a result, depreciation on tangible assets increased from 41.39 mn to 86.15 mn, amortisation of intangible assets increased from 3.57 mn to 3.97 mn, and depreciation of right-of-use assets increased from 17.56 mn to 23.31 mn.
Other Expenses
The Companys other expenses increased by 64.5 % from 269.57 mn in FY2024 to 443.43 mn in FY2025. This was primarily due to an increase in (i) Travelling expenses from
41.13 to 54.30 mn from increased business activity (ii) Legal & professional expenses from 35.79 mn to 90.51 mn, reflecting compliance, higher consulting and legal costs associated with expansion (iii) Business Promotion expense from 39.60 mn to 56.41 mn (iv)Technical Support expenses from 32.55 mn to 48.90 mn, indicating outflows in technology support (v) Customer support expenses from 3.48 mn to 20.85 mn (vi) Corporate Social Responsibility expenses from 7.03 mn to 12.99 mn, showcasing the companys commitment to social initiatives. and (vii) Office expenses from 17.33 mn to 27.95 mn and (viii)Postage and
Courier expenses from 24.13 mn to 33.59 mn
Profit/(loss) Before Taxes
Profit before tax increased by 51.0%, from 1,019.56 mn in FY2024 to 1,539.68 mn in FY2025. This growth was primarily driven by a 58.7% increase in revenue from operations, which rose from 7,240.75 mn to 11,490.21 mn, while total expenses increased by 58.4% from 6,340.06 mn to 10,044.43 mn.
Tax Expenses
The Companys total tax expenses increased by 51.6% from 260.53 mn in FY2024 to 394.93 mn in FY2025 due to an increase in our current tax expense from 256.65 mn to 400.55 mn, in line with the increase in profit before tax.
Profit/(loss) for the Year
The Companys profit for the year increased by 50.8%, from 759.03 mn in FY2024 to 1,144.75 mn in FY2025, primarily driven by a 58.7% increase in revenue from operations, which rose from 7,240.75 mn to 11,490.21 mn. This growth outpaced the 58.4% increase in total expenses (from 6,340.06 mn to 10,044.43 mn), while other income declined by 21.0% (from 118.87 mn to 93.90 mn), and total tax expense increased by 51.6% (from 260.53 mn to 394.93 mn), in line with higher profitability. assets
Significant Changes in Key Financial Ratios
Interest Coverage Ratio
The Interest Coverage Ratio improved significantly to 38.64 in FY2025 from 17.42 in FY2024, reflecting a 121.8% year-on-year increase. This improvement was primarily driven by a 46.13% increase in EBIT, supported by strong operational performance, and a 34.1% decline in finance costs due to reduced borrowings and improved cash flow management. The Companys strengthened liquidity and lower interest burden during the year further enhanced its debt-servicing capability.
Current Ratio
The Current Ratio declined to 2.33 in FY2025 from 3.13 in FY2024, reflecting a 25.4% year-on-year decrease. While current assets increased by 47.38%, led by higher inventories
[+94.35%], trade receivables [+96.67%], and cash and cash equivalents [+89.67%], the ratio moderated due to a 97.6% rise in current liabilities, driven primarily by a 135.3% increase in trade payables.
The sharp rise in payables and overall current liabilities was aligned with the scale-up in business operations and procurement volumes. Additionally, the reduction in bank balances by 92.8% reflects the deployment of IPO proceeds, which had kept current assets elevated in the previous year. Despite the decline, the Company continues to maintain a strong liquidity position and efficient working capital management.
Net Debt to Equity Ratio
The Net Debt to Equity ratio improved to -0.31 in FY2025 from -0.24 in FY2024, reflecting a 27.1% year-on-year improvement. This change was driven by a 102.4% increase in Net Cash Surplus, from 801.0 million to 1,621.3 million, supported by strong internal accruals and prudent capital allocation. During the same period, total equity grew by
25.4%, further strengthening the Companys balance sheet. The negative net debt/equity ratio reflects a healthy, debt-light capital structure and improved financial flexibility.
Return on Net Worth (RoE)
The Companys Return on Net Worth declined to 24.0% in FY2025 from 29.40% in FY2024, reflecting a decline of 537 basis points. While Profit After Tax (PAT) grew by 50.8%, from 759.03 million in FY2024 to 1,144.75 million in FY2025, the decline in ROE was primarily due to a sharp 84.6% increase in average equity, from 2,582.09 million to 4,765.42 million.
The increase in equity reflects retained earnings and balance sheet strengthening during the year. Despite the moderation, ROE remains healthy and above industry norms, supported by strong operational performance.
Key Performance Indicators
Particulars |
FY2025 | FY2024 |
| Sale of products (in mn) | 10,975.45 | 7,064.96 |
| Sale of services (in mn) | 455.36 | 175.72 |
| Other operating revenue (in mn) | 59.40 | 0.07 |
| Revenue from operations (in mn) | 11,490.21 | 7,240.75 |
| Cost of goods sold (COGS) | 8,825.4 | 5,445.45 |
| (in mn)1 | ||
| Gross margin (in %)1 | 23.19 | 24.8 |
| EBITDA (in Rs. mn)2 | 1,694.01 | 1,144.16 |
| EBITDA margin (in %)2 | 14.7 | 15.8 |
| Profit for the year (in mn) | 1,144.75 | 759.03 |
| Profit margin (in %) 3 | 9.9 | 10.48 |
| Return on equity (ROE) (in %)4 | 24.0 | 29.4 |
| Return on capital employed | 32.57 | 38.52 |
| (ROCE) (in %)5 | ||
| Total borrowings (mn)6 | 79.49 | 95.73 |
| Net debt (in mn)7 | (1,621.34) | (801.02) |
| Net debt-equity ratio (in times)8 | (0.31) | (0.19) |
| Net debt-EBITDA (in times)9 | (1.01) | (0.7) |
| Asset turnover ratio (in times)10 | 22.67 | 16.18 |
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. EBITDA is calculated as profit for the year plus tax expense, depreciation and amortisation and finance cost for the year, while EBITDA margin is the percentage of EBITDA divided by total revenue from operations for the year.
3. Profit 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 equivalents.
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
The Company has a dedicated team relentlessly focused on innovation across both software and hardware domains. The
R&D teams deep expertise in high-end computing solutions, their capability to address complex technological challenges, and their continuous drive for innovation, combined with extensive experience in developing cutting-edge products within India, enable the company to remain at the forefront of technological advancement. This foresight allows them to anticipate and shape the evolving needs of customers and the market.
With a dedicated R&D facility, the company has successfully expanded its portfolio to include eight product lines: Tyrone
Cluster Manager, KUBYTS, VERTA, ParallelStor, Collectivo, SKYLUS, Tyrone Camarero AI Systems, and GPU Systems. Driven by our in-house R&D expertise, FY2025 marked the launch of Skylus.ai, a composable GPU appliance designed to empower enterprises with AI labs and enable innovation-as-a-service within their organisations. Purpose-built for dynamic GPU resource management across multi-vendor environments, Skylus.ai demonstrates our foresight in addressing the demands of evolving AI workloads and enterprise use cases. Over the year, our R&D efforts led to the addition of over 100 plus new servers, AI systems, and workstation models, significantly expanding our portfolio to deliver customised, performance-optimised deployments across diverse industry needs. The Companys R&D team works from dedicated facilities in Faridabad, Gurgaon, and Hyderabad. As of March 2025, the team comprised 81 members, representing approximately 18.4% of the total workforce, with plans for additional hires.
The R&D team operates from specialised facilities located in Faridabad, Gurgaon, and Hyderabad.
ESG Initiatives
As a responsible corporate citizen, the Company has made significant strides in aligning with environmental, social, and governance (ESG) objectives. A pivotal step in this journey was the formation of an ESG Committee tasked with assessing the Companys current strengths, capabilities, and identifying any gaps in systems, processes, and data.
Leveraging these insights, the Committee formulates and diligently implements a strategic ESG roadmap. During the year under review, the company has undertaken several key initiatives, including the following:
• To ensure effective governance, the Company has established comprehensive policies addressing employee grievances, gender equality, equal employment opportunities, and anti-corruption measures.
• The Company is committed to providing a minimum of 25 hours of training to each employee annually.
• All employees are covered under the Companys mediclaim insurance and accidental insurance schemes. Moving forward, the Company plans to extend life insurance coverage to its workforce.
• The Company aims to source at least 5% of its total energy requirements from renewable sources by the year 2027.
Risk and Mitigation
Risk |
Impact | Mitigation |
Cybersecurity Risk |
With increasing digitalisation, Netwebs solutions are exposed to cyber threats and vulnerabilities. A major breach, whether within its internal systems or via its deployed solutions, could damage customer trust, incur regulatory penalties, and disrupt operations. | The Company implemented robust cybersecurity frameworks aligned with global standards. Its manufacturing facility is certified under ISO/IEC 27001:2013 (Information Security Management System), ensuring strong internal controls over data protection, system access, and threat response. |
Technology Risk |
Rapid technological advancements pose the risk of products or services becoming obsolete. | The Company invests in research and development, enabling it to stay ahead of emerging trends. Moreover, strategic collaborations with leading technology partners such as Intel, AMD, and NVIDIA allow the Company to continuously update and enhance its product and service offerings. |
Regulatory and Compliance Risk |
Netweb operates in sensitive industries such as defence, telecom, and BFSI, which are subject to strict data residency, cybersecurity, and import/ export laws. Non-compliance with government guidelines can lead to disqualification from tenders, fines, or reputational loss. |
The Company complies with ISO standards for quality, environment and information security, ensuring that its operations, systems, and product development processes meet stringent statutory and regulatory requirements. Dedicated teams monitor policy developments and ensure timely action to maintain full compliance across jurisdictions. |
Credit Risk |
Delays in customer payments and receivables can negatively affect the Companys profits and cash flow. | The Company has implemented a robust collection and follow-up system to ensure timely recovery of payments, thereby reducing the likelihood of unrealised receivables. |
Forex Risk |
The Company does not engage in hedging transactions to manage foreign currency exposure, implying that fluctuations in exchange rates could negatively impact its business, operating results, and financial condition. | The Company mitigates this risk through natural hedging by aligning its currency inflows and outflows |
Client Concentration Risk |
The Company faces the risk of significant revenue concentration, with the top 10 customers accounting for the majority of its earnings. Any loss of these key clients could adversely impact its revenue. | Netweb Technologies has a strong track record of successfully retaining its major customers over the years and continues to expand its customer base to mitigate this risk. |
Reputation Risk |
Given the Companys prominence in the Indian HPC and private cloud space, any failure in performance, delayed delivery, security breach, or quality lapse can adversely impact its reputation. | Netweb mitigates this risk through a track record of delivering complex supercomputing and AI infrastructure projects, some of which have been ranked among the Top 500 supercomputers globally. The Company leverages its R&D and indigenous design capabilities to ensure product quality and consistency. |
Human Resources
Employees are the most valuable asset for the Company. As March 31, 2025, the Company has 441 permanent employees.
The Company places great emphasis on nurturing in-house talent and promoting a culture of self-motivation and teamwork. Regular training and upskilling are imparted wherever required. The Company aims to be an employer of choice and promotes inclusivity, respects diversity and strong talent retention. As a part of its talent retention programmes, the Company offers Employee Stock Ownership Plan (ESOP) schemes, incentives, performance management systems, rewards and recognitions. The Company values and highly appreciates suggestions from employees and implements it for organisational improvement.
Internal Controls
The Company has established robust and effective internal control systems commensurate with its size and operations. These stringent controls ensure efficient and prudent utilisation of resources, safeguarding the Companys assets and interests. Transactions are meticulously approved, recorded, and accurately reported, with checks and balances in place to ensure the reliability and consistency of accounting data. The internal control systems cover all areas of the Companys operations and undergo periodic reviews and testing to ensure their effectiveness. The Company places great emphasis on the continuous enhancement of its internal control systems to mitigate risks and improve operational efficiency. The efficacy of the internal and control systems is validated by internal audits and statutory auditors.
Quality Control
The Company has implemented quality systems across its manufacturing facility which is designed to ensure quality of products and solutions offerings. Strict checks have been built as a part of the supplier selection process to ensure that all components purchased are in compliance with the Restriction on the use of Hazardous Substances (RoHS) directive.
The Company has also obtained BIS certification IS 13252 (Part 1):2010/ IEC 60950-1: 2005 for its servers, workstations and storage solutions. The Manufacturing
Facility are ISO 14001:2015, (Environment Management System), ISO 9001:2015 (Quality Management System) and ISO/IEC 27001:2013 (Information Security Management System) certified.
The Companys products are subjected to various tests including the HIPOT test, (dielectric, i.e. insulation barrier between hazardous and non-hazardous part, strength testing) insulation resistance test, burn-in test (where products are run for an extended length of time in order to identify any potential problems) and the test for electrostatic discharge. Further the Manufacturing Facility also has a dedicated performance analyser to run ‘Linpack tests before the final product and solutions offerings are dispatched to the customers.
Cautionary Statement
Certain statements made in this report, including but not limited to the Companys objectives, projections, expectations, and estimates, may constitute "forward looking statements" within the meaning of applicable laws and regulations. Actual results may differ materially from those expressed or implied. Various factors could make a significant difference to the Companys operations and actual results, including but not limited to changes in Government regulations, tax laws, economic developments in India and other countries where the Company conducts business, litigation, and other related factors. This report serves as a cautionary statement, and the Company takes no responsibility for any decisions made based on the information contained herein.
ANNEXURE TO THE NOTICE
EXPLANATORY STATEMENT PURSUANT TO THE PROVISIONS OF SECTION 102 OF THE COMPANIES ACT, 2013
Agenda Item No 4:
The Board of Directors of the Company, on the recommendation of the Audit Committee, has approved the re-appointment of M/s Sunny Chhabra & Co, Cost Accountants, as the Cost Auditors to conduct the audit of the cost records of the Company for the financial year 2025 -26 at a remuneration of 80,000 per annum [Rupees
Eighty Thousand only per annum] plus applicable taxes and reasonable out of pocket expenses. In accordance with the provisions of Section 148 of the Companies Act, 2013 read with rule 14 of the Companies (Audit and Auditors) Rules, 2014, the remuneration payable to the Cost Auditors, as approved by the Board on the recommendation of the Audit Committee, has to be ratified by the members of the Company. Accordingly, consent of the members is sought by way of an Ordinary Resolution as set out at item no. 4 of the Notice for ratification of the remuneration amounting to 80,000 plus applicable GST and out of pocket expenses incurred by them in connection with the aforesaid audit.
The Board of Directors recommend the resolution for the approval of the members.
None of the Directors or Key Managerial Personnel of the
Company or their relatives are in any way, concerned or interested, financially or otherwise, in the said resolution.
Agenda Items No 5 to 8:
Pursuant to the approval of the members of the Company in their extra ordinary general meeting held on January 9,
2023, it was approved to make payment of commission to whole time directors based on the net profits of the Company for the respective financial year, as an integral part of the remuneration as per below approved limit which would be subject to the approval of the members in the Annual General Meeting of the concerned financial year.
Name of the Director |
DIN | % Commission on profits |
| Mr. Navin Lodha | 00461924 | 0.35% |
| Mr. Niraj Lodha | 00746701 | 0.35% |
| Mr. Vivek Lodha | 00461917 | 0.35% |
| Mr. Sanjay Lodha | 00461913 | 0.60% |
Total |
1.65% |
In the financial year 2024 25, the Company achieved significant milestones in revenue and profitability, reflecting strong operational performance and strategic execution. This exceptional growth would not have been possible without the relentless dedication and commitment of
Mr. Sanjay Lodha, Mr. Navin Lodha, Mr. Vivek Lodha and
Mr. Niraj Lodha. Upon the recommendation of Nomination and Remuneration Committee and approval of the Audit Committee and the approval of the Board of Directors of the Company, (‘Board) at their respective meetings held on
May 03, 2025, the approval of shareholder is being sought for payment of Commission to whole time directors, as detailed in the table as part of the remuneration, for financial year 2024-25, which shall be payable only after the approval of the members of the Company in the Annual General Meeting.
Name of the Director |
% of profit to be paid as commission | Amount to be paid as commission (In ) |
| Mr. Navin Lodha | 0.35% | 54,79,310 |
| Mr. Niraj Lodha | 0.35% | 54,79,310 |
| Mr. Vivek Lodha | 0.35% | 54,79,310 |
| Mr. Sanjay Lodha | 0.60% | 93,93,103 |
Total |
1.65% | 2,58,31,033 |
Pursuant to the transaction being a related party transaction in terms of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Audit Committee in its meeting dated May 3, 2025 has also approved the payment of commission to the said directors.
As per Regulation 17(6)(e) of SEBI Listing Regulations, the fees or compensation payable to Executive Directors who are promoters or members of the promoter group, shall be subject to the approval of the shareholders by special resolution in a general meeting, if the aggregate annual remuneration payable to such executive directors exceeds 5 per cent of the net profits of the listed entity.
For FY 24-25, after taking into account the aforesaid commission proposed to be paid to the Executive Directors/ Whole time directors, the aggregate annual remuneration payable to them may exceed 5 percent of its net profits for FY 24-25. Accordingly, the approval of the shareholders by way of special resolution is being sought.
The following Directors or their relatives are interested in the resolution, to the extent of their shareholding in the
Company. None of the Key managerial personnel or their relatives are interested, financially or otherwise.
NAME OF THE DIRECTORS/ RELATIVES |
% OF SHAREHOLDING (AS ON MARCH 31ST, 2025) |
| Sanjay Lodha | 28.30 |
| Navin Lodha | 14.15 |
| Vivek Lodha | 14.15 |
| Niraj Lodha | 14.15 |
| Priti Lodha | 0.001 |
| Anuja Lodha | 0.001 |
| Sweta Lodha | 0.001 |
| Nisha Lodha | 0.001 |
Agenda Item no. 9
M/s P.C Jain & Co., Company Secretaries, a leading practicing Company Secretaries have vast experience in delivering comprehensive professional services across Corporate Laws, SEBI Regulations and FEMA Regulations.
Their expertise includes conducting Secretarial Audits, Due Diligence, Compliance Audit etc. They were appointed as secretarial auditors of the Company for conducting Secretarial Audit for the financial year 2023-24 and 2024-25, however, in accordance with Regulation 24A of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as "LODR Regulations") the same shall not be considered for calculating the tenure of Secretarial Auditor. In terms of Regulation 24A of LODR
Regulations, the Company shall appoint a peer reviewed firm as secretarial auditors for not more than two (2) terms of (5) consecutive years each.
P.C Jain & Co is eligible for appointment for a period of years and on the basis of recommendations of the Audit Committee, the Board of Directors, at its meeting held on May 03, 2025, recommended their appointment as secretarial auditors of the Company, to hold office for a term of five consecutive years commencing from Financial Year 2025-26 till Financial Year 2029-30. The appointment is subject to the approval of the shareholders of the Company. They have given their consent to act as secretarial auditors of the company and confirmed that their aforesaid appointment approved) would be within the limits specified by Institute of Company Secretaries of India for undertaking audit engagements. Furthermore, in terms of the amended LODR
Regulations, M/S P.C Jain & Co has provided a confirmation firm of that they have subjected themselves to the peer review process of the Institute of Company Secretaries of India and hold a valid peer review certificate. The proposed remuneration to be paid for secretarial audit services for the financial year ending March 31, 2026, is 1,30,000 (Rupees
One Lakh Thirty Thousand only) plus applicable taxes and reasonable out-of-pocket expenses. Besides the secretarial audit services, the Company may also obtain certifications from PC Jain & Co. under various statutory regulations and certifications required by banks, statutory authorities, audit related services and other permissible non-secretarial audit services as required from time to time, for which they will be remunerated separately on mutually agreed terms, as approved by the Board of Directors in consultation with the five Audit Committee. Based on the recommendations of the Audit Committee, the Board of Directors have approved and recommended the aforesaid proposal for approval five of members taking into account the eligibility of the firms qualification, experience, independent assessment & expertise of the partners in providing secretarial audit related services, competency of the staff and Companys previous experience based on the evaluation of the quality of audit work done by them in the past.
None of the Directors and Key Managerial Personnel of the
Company and their respective relatives are concerned or interested, financially or otherwise, in passing the proposed Resolution. The Board recommends the resolution set forth in item no. 9 for the approval of members.
Notes on Director seeking appointment/re-appointment
As required under regulation 36(3) of the Listing Regulations, 2015 and Secretarial Standards on General Meetings, particulars of the Director who is to be re-appointed are given below:
| Name of the Director | Niraj Lodha |
| Brief resume of the director | |
| Director Identification Number | 00746701 |
| Date of Birth | February 14, 1977 |
| Date of first appointment on the Board of Directors | April 13, 2015 |
| Qualifications | Graduate in commerce |
Experience including nature of expertise in specific functional areas |
25 + Years of experience in Sales & Marketing |
List of other Directorships including directorships in other listed entities |
2 [Supermicro Computers (India) Private Limited & Tyrone Systems Private Limited] |
Chairmanship/ Membership of Committees in other companies |
Nil |
Listed entities from which the director has resigned in the past three years |
Nil |
Relationship with other Directors and Key Managerial Personnel |
Mr. Navin Lodha, Brother |
| No. of shares held in the Company | 80,16,125 |
| No. of Board meetings attended during last Financial Year | 4 (Four) out of 6 |
Details of Remuneration paid/ sought to be paid |
Existing Salary and commission on the profits of the Company as approved by the member in the EGM held on January 9, 2023. |
Remuneration last drawn by the director |
Salary and commission as mentioned in the Report on Corporate Governance forming part of the Annual Report |
Terms and conditions of appointment |
Mr. Niraj Lodha was re-appointed as Whole-time Director of the Company for a period of 5 years w.e.f August 15, 2021, liable to retire by rotation. This appointment is being made in terms of section 152(6) of the Companies Act, 2013. |
| Nature of expertise in specific functional area | Sales & Marketing |
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