Shares of Netweb Technologies slipped close to 5% on Monday, trading at ₹3,848 in early deals compared to the previous close of ₹4,037.80. The stock decline comes after the company reported its Q2 FY26 results, which showed a sharp sequential drop in revenue and profit.
The company posted revenue of ₹471.71 million in Q2 FY26, broadly flat compared to ₹471.04 million in the same quarter last year. However, revenue fell significantly from ₹710.70 million in Q1 FY26, reflecting softer demand or a slowdown in deal execution during the quarter. Profit after tax for the quarter came in at ₹30.99 million, almost unchanged year-on-year but down from ₹38.67 million in the previous quarter.
For the first half of FY26, the tech manufacturer reported revenue of ₹1,182.41 million and a profit of ₹69.66 million. Earnings per share stood at ₹3.55 for the quarter, slightly up from ₹3.51 a year ago.
The company also announced a change in its inventory valuation method, moving from FIFO to the moving weighted average method effective April 1, 2024. This change impacted earnings by ₹4.27 million and has been applied retrospectively to previous financial periods.
While Netweb’s year-on-year performance remained stable, the steep quarter-on-quarter decline appears to have triggered profit-booking in the stock today. The shares traded in a range of ₹3,768 to ₹3,908 during the session.
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