Netweb Technologies shares rally 32% in 5 days. Here are 4 reasons why

Shares of Netweb Technologies surged for a fifth straight session on Friday, climbing as much as 9.7% to Rs 2,908.20 on the BSE and extending their five-day rally to nearly 32%. The stock has been buoyed by optimism following the company’s recent AGM, a Rs 1,734 crore sovereign AI order, sustained buying momentum, and bullish technical signals.

1. Sovereign AI deal
Netweb announced a Rs 1,734 crore order win on Wednesday to power India’s sovereign AI infrastructure under the IndiaAI Mission. Scheduled for execution between the last quarter of FY26 and the first half of FY27, the project will use Netweb’s GPU-accelerated platforms based on NVIDIA’s Blackwell architecture and its Tyrone Camarero AI platform.

The company’s Chairman and Managing Director, Sanjay Lodha, said the order “will help India emerge as an AI superpower” while enabling socio-economic transformation through indigenous large language and multimodal models.

2. Post-AGM optimism
The rally gained traction after the company’s annual general meeting on August 30. Management’s upbeat commentary and its roadmap for AI-led growth have bolstered investor confidence, sparking fresh buying at the start of September.

3. Bullish charts
Technically, the stock is trading above all eight of its key simple moving averages, from the 5-day to the 200-day, pointing to strong momentum.

The Relative Strength Index is at 73.5, a level considered overbought and indicative of possible near-term pullbacks. Meanwhile, the MACD at 114.5 remains above both the centre and signal lines, reinforcing the ongoing bullish trend.4. Earnings momentum
While not the immediate trigger, strong first-quarter results continue to underpin sentiment. Netweb’s June-quarter profit more than doubled to Rs 30.5 crore, while operating income surged 102% year-on-year to Rs 301.2 crore.Operating income rose 102% year-on-year to Rs 301.2 crore, while EBITDA climbed 127% to Rs 44.8 crore, with a margin of 14.9%.

AI systems were a standout growth driver, with revenue from the segment surging 300% year-on-year and contributing 29% of operating income. The company also reported a net cash position of Rs 47.5 crore as of June 2025.

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Market context
Despite the recent surge, Netweb shares are largely flat in 2025, though they are up 9% over the past year. Friday’s rally lifted the stock to an intraday high of Rs 2,908.20 on the BSE.

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