Surging Small-Cap Stock Soars 18% Post-Q4 Results: Is a 125% Dividend in Your Portfolio?

In an impressive display of market confidence, Netweb Technologies saw its share price soar by more than 18% in early trading on Monday following the release of its Q4 2025 financial results and the announcement of a new dividend. The stock surged as high as ₹1,681.45 on the BSE, capturing the attention of investors and analysts alike.

Robust Financial Performance

Netweb Technologies, known for its cutting-edge computing solutions, reported a remarkable net profit of ₹43 crore for the fourth quarter of FY25. This figure reflects a significant 45% increase from the ₹29.65 crore recorded during the same quarter last year, primarily driven by the robust performance of its AI systems segment.

Revenue Surge: The company’s operational revenue in Q4FY25 skyrocketed by 55.9%, reaching ₹414.6 crore, up from ₹265.89 crore in the previous year.
Annual Growth: For the full fiscal year FY25, total income climbed to an impressive ₹1,158.4 crore, marking a 57.4% year-on-year increase.
Earnings Per Share: Diluted earnings per share also saw a significant rise, up 45.8% to ₹20.24.

Operational Highlights

During the March 2025 quarter, Netweb Technologies experienced substantial operational growth:

EBITDA Growth: The company’s EBITDA rose 47.9% to ₹59.77 crore, compared to ₹40.42 crore in the previous year.
EBITDA Margin: However, the EBITDA margin saw a slight contraction, decreasing by 79 basis points to 14.4% from 15.2% year-on-year.

The company emphasized that its AI systems segment saw a staggering 112% growth year-on-year, contributing to 14.8% of the company’s overall revenue in FY25. The order book stood at a solid ₹325.2 crore as of March 31, 2025.

Innovations and Future Plans

Sanjay Lodha, Chairman and Managing Director of Netweb Technologies, highlighted a significant achievement: "We received our first claim under the PLI Scheme 2.0 for IT hardware, amounting to ₹59.4 million for the period from July 1, 2023, to March 31, 2024. This success underscores the PLI scheme’s role in enhancing domestic production and generating employment."

Moreover, the launch of Skylus.ai in FY25 marks a strategic initiative to create a unified solution for establishing GPU-based AI infrastructure, facilitating better resource management and deployment.

Dividend Announcement

In addition to the strong financial results, the board of directors has recommended a dividend of ₹2.5 per share, which constitutes 125% of the face value of ₹2 each. This dividend proposal will be subject to approval at the upcoming Annual General Meeting (AGM) and is expected to be disbursed within 30 days of the AGM’s declaration.

Share Price Trends

Despite a 10% gain over the last month, the small-cap stock has faced challenges, with a 43% decline year-to-date. Over the past six months, shares have dropped 38%, and they are down 11% over the past year. As of 10:20 AM, Netweb Technologies’ shares were trading 16.53% higher at ₹1,655.30 on the BSE.

These developments signal a promising future for Netweb Technologies as it continues to innovate and adapt in the evolving tech landscape. For further insights on market trends and investment opportunities, explore related articles on our site.