Netweb Technologies India Ltd. (NSE: NETWEB) Q3 2026 Earnings Call dated Jan. 19, 2026
Corporate Participants:
Sanjay Lodha — Chairman and Managing Director
Ankit Kumar Singhal — Chief Financial Officer
Sanjeev Sancheti — Investor Relations Advisor
Hirdey Vikram — Chief Sales and Marketing Officer
Analysts:
Unidentified Participant
Renu Baid Pugalia — Analyst
Seema Nayak — Analyst
Nishant Gupta — Analyst
Vinay Menon — Analyst
Akshay — Analyst
Anand B — Analyst
Shashank Jha — Analyst
Sandeep Shah — Analyst
Aman Soni — Analyst
Raman Kerti Venkata — Analyst
Onkar Ghugardare — Analyst
Miloni Mehta — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to NetWeb Technologies 3Q FY26 Earnings Call hosted by IIFL Capital Services Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Renu Beit from IIFL Capital Services Limited. Thank you. And over to you, ma’. Am.
Renu Baid Pugalia — Analyst
Thank you. Very good afternoon everyone. On behalf of IFL Capital Services, I welcome the team of NetWeb Technologies for the Q3FY26 earnings conference call today. We have with us from the management senior team represented by Mr. Sanjay Lodha, Chairman and Managing Director, Mr. Naveen Lodha, Full Time Director, Mr. Ankit Kumar Singhal, CFO Mr. Ridhevikram, Chief Sales and Marketing Officer and Mr. Sanjeev Sanjaythi, Head of Euris Advisors and IR Advisor to Netflix Technologies. Without much time, I now like to hand over the call to Mr. Sancheti for his opening remarks. Thereafter, Mr. Lodha can take over.
Thank you. And over to you sir.
Sanjeev Sancheti — Investor Relations Advisor
Thank you, Renu. Good afternoon to all the participants. Before I hand over the call to Mr. Sanjay Lodha for the opening remarks, I would like to draw your attention to the Safe harbor statement in the earnings call presentation. I request each one of you to go through the presentation before the Q and A starts so that you are aware of the Safe harbor statement. Thank you. And over to you, Mr. Lorda.
Sanjay Lodha — Chairman and Managing Director
Thank you Renu and Sanjeev. Good afternoon and a very warm welcome to all of you for doing the NetWeb Technologies Q3 FY26 earning call. We are proud to state that NetWeb has delivered a record breaking quarter, achieving its highest ever income and profit. Quarterly revenue stood at 8,049 million registering a strong growth of 141% year on year and 165% quarter on quarter. The company reported an operating EBITDA of 979 million in Q3 financial year 26 reflecting a strong year on year growth of of 127.1% while a profit after tax reached 733 million marking a robust 146.7% growth year on year.
During the quarter, NetWeb successfully executed a large strategic order valued at 4,504 million, reaffirming its position as India’s largest OEM in high end computing. Solutions. As communicated earlier, this implementation is of national significance aimed at strengthening India’s AI compute infrastructure. In this context, we would also like to give a broader industry update. As many of you may be aware, the global supply chain, particularly for the flash memory and storage is experiencing a strong demand by the rapid acceleration of AI adoption worldwide. This surge has led to industry wide price increase along with tighter availability. However, owing to our proactive supply chain planning and long standing partnerships with key technology providers, we have managed these situations very effectively and continue to support our business requirements without any disruptions.
With the execution of this order, the AI Systems segment contributed to 64% of Q3 financial year 26 revenue and 48% of nine month financial year 26 revenue. We would like to emphasize that alongside the accelerated growth of AI, our other two core segments of HPC and Private Cloud are also witnessing strong and sustained demand. This exceptional performance underscores Netwel’s steadfast commitment to in house design and manufacturing of next generation systems fully compliant with make in India initiative and highlights our contribution to India’s emergence as a global hub for high tech manufacturing. Our order book is very robust with Organic order book at 5258 million and strategic order book at 17,336 million.
This order book along with strong pipeline positions us for strong sustained growth over the next few years. NetWeb’s continued focus on its three strategic growth pillars, HPC, private cloud and AI systems is enabling us to capitalize on strong industry tailwinds. Supported by these core strengths, we continue to remain the technology leader in the high end computing system space. I now request Ankit to take you through the financials. Thank you.
Ankit Kumar Singhal — Chief Financial Officer
Thank you Mr. Lodha. Good afternoon ladies and gentlemen and thank you for joining our earnings call. Before we open the floor for Q and A, I will provide a brief overview of the financial performance for the quarter and the year gone by. I trust that by now you have had the opportunity to review our earnings presentation and press release. While our CMD has already discussed the macro outlook, I will elaborate on the financial performance providing a more detailed analysis. Our operating income for Q3FY26 stood at rupees 8049 million showcasing a growth of 141% yoy and 165% q on Q.
Our operating EBITDA for Q3FY26 stood at Rupees 979 million showcasing a growth of 127.1% yy and 115.4% Q1Q with a margin of 12.2%. Profit after tax for Q3, FY26 stood at Rs. 733 million showcasing a growth of 146.7% yoy and 1,3 3.2% q on Q with a margin of 9%. Our operating income for nine months FY26 stood at Rupees 14,099 million showcasing a growth of 92% yoy. Our operating EBITDA for nine months FY26 stood at rupees 1883 million showcasing a growth of 88.7% yoy with a margin of 13.4%. Profit after tax for nine months FY26 stood atrupee rupees 1352 million showcasing a growth of 90.1% yoy with a margin of 9.5%.
Return on equity for nine months FY26 was 30.5% while return on capital employed for the same period was 41.3%. Our cash conversion cycle as of December 2025 stood at 69 days reflecting significant improvement compared to the previous quarter. Our balance sheet strength is reflected by us being a zero net debt company. The company had net free cash of Rupees 1900.8 million as on 31st December 2025. Our strategic roadmap and growth priorities remain on track. Supported by strong year long term momentum, a healthy order book and a solid pipeline, we are positioned to deliver consistent revenue and profitability this fiscal year.
With this, I now hand over the call to Renu Bhait.
Renu Baid Pugalia — Analyst
Yeah. We can now start with the Q and A session.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star N1 on the Touchstone telephone. If you wish to remove yourselves from the question queue, you may press STAR and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Seema Nayak from ICICI Securities. Please go ahead.
Seema Nayak
Hi. Congrats on a great quarter. So my first question is, can you tell us the timeline of execution of strategic deals? Is it the same as before or are there any changes? And second is regarding the HCI and HPC segment growth which have been rather slow in this quarter. So what has caused this muted growth and how will the growth pan out going forward?
Sanjay Lodha
So basically our guidelines on the execution of the strategic order remains the same. Basically, we had guided that one order should be executed by Q4 actually got preponed to Q3. So basically you already saw that. And basically we target to do at least one third of the order in this year basically overall. So guidance remains almost all valid in the same lines. As regards your second question on muted growth of basically our HPC and private cloud segment, I completely. I think that’s basically. I think that’s not true because basically the growth of both the segments have really been growing constantly.
But what happens is since basically since there is a large order execution. So on a Q and co basis. We could. Yeah. So basically we cannot. Basically what happens is in our kind of business it becomes very difficult to man to measure anything quarter on quarter basis actually because basically we have different. We have very large enterprise and government customers. So order execution. Since basically as I mentioned to you as since the last strategic order I had not guided that it will be done in Q3. We pulled it to Q3 the same way basically Q1 quarter on quarter it can become. It can vary. But overall, overall basically our both these segments as you might have seen in the Q1, Q2 and the overall 9th month results are very robust and really are.
Because all those areas are really demanding. Like basically supercomputing is growing at a good way and private cloud again the data center market is booming.
Sanjeev Sancheti
So I just like to add here Sanjeev. So if you look at the YTT growth then we’ve done these two segments have done over 20% and there will be some quarters where some segment will do better and some segment will be lagging behind. But overall I think these three segments will continue to grow at a very strong pace as we have guided earlier. Of course you have to remove the strategic order and see the growth of another segment, the AI segment.
Seema Nayak
Thanks. My next question is regarding exceptional items. So many companies have announced cost from implementation of new labor codes. So any reason we have not announced.
Ankit Kumar Singhal
So Seema, there is no material impact of new labor codes on our financial. Because as per the new labor codes there is a revision in the wages definition and we are already. We were already complied on the structure that new labor codes have kind of clarified. So that’s why there was no impact on us.
Seema Nayak
Got it. Thanks and congratulations.
Ankit Kumar Singhal
Thank you.
operator
Thank you. The next question is from the line of Nishant Gupta from Kotak pms. Please go ahead.
Nishant Gupta
Hi sir. Thanks for the opportunity. Congratulations for a good set of number. I had just one question, more of a strategic question. As such, how do you foresee the budget for air mission evolve in coming quarters? As the initial allocation orders were only for 4,500 crores and 10,000 GPUs. When do you think further orders would get placed and what would be our win percentage within that? Thanks so much.
Sanjay Lodha
The government focus is phenomenal on AI actually as you might be aware that the recently the new AI Impact Summit is being held from 17th to 20th of February where Prime Minister himself is supposed to be sharing the stage with Nvidia CEO. Okay so basically there’s a lot of focus and impetus from the government on the AI side of it and AI mission has been there and basically we have been always been saying that AI mission will basically roll out and you already started seeing it roll out actually. So as I have been telling continuously there are two parts of AI mission actually.
One is they will be taking GPUs on lease from the CSPs and then offering it to the startups and basically various kind of bodies who are working on citizen centric services so as to enable those kind of development. The second part will be wherein the government will be clearly buying the GPUs for their own basically own data centers and all the second set of things are yet to come but the first has just started. So there is a lot of pressure on the government also to increase their spending and I think there are phenomenal planning and phenomenal execution is going on in that case.
And plus basically there is a lot of assurance and there is a lot of the statements from the government clearly indicate that they are ready to even offer more money. So I don’t think money is a challenge but primarily the spending has started and I think it will gain momentum as the time passes on.
Nishant Gupta
If I could just clarify one small thing. So in the earlier case, correct me if I’m wrong, in the earlier case it was the order was placed for 10,000 GPUs and 4500 odd crores and in that I believe we have 12170 odd crores of strategic order which you had announced last quarter. Now has this entire 4,500 odd crores tender be released when orders being placed or we are still left with certain orders being placed within that 2500 odd crores.
Sanjay Lodha
Yeah, I would have let Hirde answer that question but basically give me a brief and maybe Hirde can take it up from there. So Basically this was 10,000 crores was the value. Okay. And the number of GPUs was not specified actually. Okay, the first thing is that and second is that that basically they are not offering the 4,500 crore. The GPU order has not come as yet. Basically it will come in different way actually maybe hirday if you can explain and elaborate that.
Hirdey Vikram
So basically there are two set of procurements which are happening right now. One is that we have to build the gpu. You know they want to render these GPU services to the internal CSPs. That is one effort of working in a procurement by government of India. Second procurement, is that what you are referring to? That they have to do the procurement for on prem infra which we have to bring using GPUs. So that is yet to start. So what we have been executing so far or what we have shown as the strategic orders, what we have picked up, that is pertaining to the first type of procurement, what they have done.
So second is get to start. I hope this answers your question.
Nishant Gupta
Sure, that’s helpful. Thank you so much.
operator
Thank you. The next question is from the line of renu bait from IIFL Capital Services Ltd. Please go ahead.
Renu Baid Pugalia
Yeah, thanks for the opportunity sir. So my first question is recently obviously we’ve been hearing a lot about the shortages in memory chips especially for DRAM and hbm. So a what is the share of DRAM HBM in our bill of materials and how are you seeing the shortage of these chips impacting or having a potential impact on your execution timelines and margins given that most of our orders are fixed price nature.
Sanjay Lodha
So basically as regards the, basically the bom, normally we don’t share the bom actually that basically the percentage of a component in a BOM and actually it varies also as per the user requirement as per basically what they need and what is their application and all that. So it is not fixed as such. So but definitely memory and flash and storage is a substantial part of the bond, there’s no doubt about that. But answering the question on the other side is that basically as we all are aware that there has been huge shortages and huge price jump and all this is happening because of the AI demand actually surging worldwide.
This is not a domestic event, this is an international event wherein basically the complete the AI demand is surging like anything. And so the manufacturing capability of memory and other things are not able to cope up and that is resulting into shortages and price hikes. So but you see that even that was happening but still we have performed all our deliveries and our performance has been. We have grown, our revenue has grown by such a huge number. That has only happened because basically our supply chain planning has been very, very effective. And since basically you have to Understand one thing, that industry is experiencing shortages in flash and memory.
But we manage this challenge effectively through proactive supply chain planning and strong technology partnership. Our focus on high end niche solutions rather than box pushing allows us to maintain deep and long term relationship with key suppliers which gives us priority access to critical components such as storage and memory for new orders. Pricing will be aligned with the prevailing market dynamics at the time of the order placement. This approach ensures transparency while allowing us to continue delivering reliable high performance solutions despite ongoing supply constraints. So it’s very clear that basically we are minimally impacted and I don’t think this will impact either our profits or our delivery timeline.
Renu Baid Pugalia
Hello.
Sanjay Lodha
Yeah hello.
Renu Baid Pugalia
Thank you sir for this. The second question is if we look at the organic growth excluding the strategic order execution which was done in the current quarter was fairly soft at just about 6% yoy. So if you can share some inputs in terms of how does how is our capacity lined up to sustain the organic growth momentum in 30 to 40% CAGR range which we have been highlighting over a longer period time frame and were there any specific issues in terms of delivery deferments or other elements which impacted the organic growth in the particular quarter and what would be our guidance on the organic growth side for the annual fiscal 26 and fiscal 27?
Sanjay Lodha
Answering your first, the last question first as we have been guiding all along that our growth will be at 30 to 40% CAGR, we still maintain that on the organic side and we will basically if you see the order book that will all give you the confidence. It’s 525 crores on the primarily on the organic side plus L1 is around 300 crore, that makes it around 800 crores. So basically order book is really full and we have a very good order book on the organic side that gives me the confidence that it will continue at the same day.
Your other question was primarily on the supply, on the basically on the manufacturing capabilities or the capacity. So we have always been saying that we are not a capacity based organization. We are a capability based organization. So primarily, basically we don’t need to make any kind of primarily we don’t have any capacity challenges like manufacturing capacity and all that because we have very clearly indicated that up till 25,000, 2500 to 3000 crores, our manufacturing facility is almost all very very sufficient. You don’t need to really invest into capex and all. So that’s not a limiting factor.
But what happens is that definitely once a large order comes in at some point some smaller orders get pushed into the next quarter. So that may result into some kind of number, kind of changes. So that’s the reason I always say that in our kind of business you cannot see anything on quarter on quarter basis. You have to see it at least basically on a year, on year basis or if not H1H2 kind of a basis.
Sanjeev Sancheti
Even if you look at, if you ignore the strategic order on a y o y basis we have grown over 30% for nine months.
operator
Renu ma’, am, you want to ask more questions?
Renu Baid Pugalia
No, I’m done on this side. Thank you.
operator
Thank you. The next question is from the line of Vinay Menon from Monarch Capital. Please go ahead.
Vinay Menon
Hi sir. Thank you for the opportunity and congratulations on great set of numbers. Few questions from my side sir that margins have come down for us in this quarter and we were expecting you know, margins to come down because of the large deal execution and next three quarters we will continue to execute this large deal. So can we expect margins to be in this range for the next two to three quarters?
Sanjeev Sancheti
Let me just take this question. So we have guided that we will be about 200 basis points lower at the PPT level on the strategic order because obviously these are very strategic large order and that’s the way these orders would come. So if you kind of remove the strategic order and do a weighted average then you will see that we would have done a pat margin of about 9.9% in the quarter and YTT above 10%. I mean it, we continue to guide the same in strategic order we’ll be about 200 basis points lesser on the PBT level and whatever mix we then achieve every quarter probably you can be guided by that.
Vinay Menon
Okay, so just to understand because we did 15% margins for the last two quarters and you had mentioned that you know these are exceptional margins and you know the range will still be between 13 to. So is that the range we should take for the constant business going ahead?
Sanjay Lodha
Yes, yes, yes, you’re right. You’re absolutely right. Because you can very well understand in today’s market dynamics if we are able to just take up orders worth 500 crores at 200 basis point below, I think we should be complimented for that basically because it’s really, it’s really in this world where, which is very dynamic and which is really basically all these kind of solutions are being sold and adopted in spite of everything. So definitely that helps. That speaks a lot about our company’s products and the range of solutions.
Vinay Menon
Okay. Completely, completely. And just two more questions. One is on the Cash flow. So you know first off we, we posted a you know 100 crore plus CFO. So for nine months what’s the status and is there any inventory pile up for the execution which we’ll do for the next few quarters.
Ankit Kumar Singhal
So Vinay, as far as inventory pile up is concerned. So all inventory is basically for our upcoming orders and stocking of our critical components. So there is no pile up assets. If you see our inventory days were maintained at 60 days as of 31st December. And regarding the cash flows, we had positive operating cash flows in this quarter by close to like quarter.
Sanjeev Sancheti
Was 30, 33 crores. Yeah, was about 134 crores.
Vinay Menon
Okay. Okay.
Sanjeev Sancheti
Days itself says that. That there is no inventory pile up.
Vinay Menon
Yes. No, I just want to understand for Q4 how are we placed so that you know, so we can get clarity for the year.
Sanjay Lodha
Infantry planning is very good. The supply chain planning has been happening very well. Actually the technology providers are helping us. So definitely we are very. I don’t think we have anything to worry on the inventory side actually.
Vinay Menon
Okay. And just one last question from my side sir. Like you seeing the way, you know like ASICS are coming as an alternative to GPUs and you know like there is a big risk that GPU demand might just come down in H2 of 27. And how are we placing ourselves for that? Because we do have a very good relation with Nvidia. But are we looking to build relations with you know, people who are in asics like you know, Google or Broadcom? Is that a plan for the company?
Sanjay Lodha
Actually really speaking, if you really see the kind of today you are seeing that memory shortages, shortage of storage and everything is happening because of the AI demand. Search. Okay, so what my personal feeling is that we are at the tip of the iceberg. Actually really speaking, people may talk about bubble and all but basically what my feeling is definitely AI has just started. And basically if you see the demand, the worldwide demand that answers it very well. Nobody can sustain that. But there is a wishful thinking that we need a substitute. Definitely. So netpleb is a very open company.
We are not married to anybody that we have to work with. Only Nvidia or somebody else. So we are very clear and we are always open to working on new technologies. The only thing which we work is that we work on complete technology indigenously. We design our hardware, we manufacture our hardware, our software, everything in India. So basically it may be Google, it may be, it may be anybody else. We are more than glad to work if there is market adoption and market dynamics desire that we are fully capable of doing that.
Vinay Menon
Okay, thank you so much. Thank you. Thanks for the opportunity.
Sanjay Lodha
Thank you.
operator
Thank you. The next question is from the line of Akshay from AK Investments. Please go ahead.
Akshay
Hi sir. First of all congratulations for the great set of numbers. Sir, I was just having a question regarding our order book. Our organic order book is strong and obviously the L1 is combined is around more than 800 crore. But for the strategic order, are you seeing any kind of deal or any big size of order for the next longer term for next one to two years?
Sanjay Lodha
Yeah, definitely. Yes. Because basically a lot of discussions going on. There’s a lot of activity happening. But strategic orders, we are not guiding as earlier strategic orders. We are announcing as we are winning it. So we’ll maintain the same stand.
Akshay
Okay, sir, thank you. All my other questions have been answered. Thank you. And all the best.
operator
Thank you. The next question is from the line of Anand B from Sema Wealth Private limited. Please go ahead.
Anand B
Good evening sir. Can you hear me?
Sanjay Lodha
I can hear you very well.
Anand B
Yes. Congratulations. A good set of numbers. Three questions. The first one is regarding your import components and your hedging policy. Hedging policy for that. So do you have a hedging policy for any import. The prices of any import company fluctuations and just give a sense of what you have in that.
Sanjay Lodha
We have a hedging policy for currency fluctuation. The CFO will elaborate.
Ankit Kumar Singhal
Yeah, so there is a hedging policy very well adopted. And to talk about it, we also have forward contract as on December end which close to like cover our 60% of our payables pertaining to the import payables. So we are very well monitoring the situation on currency and doing the effective hedgings wherever necessary. And just to appraise, there is an MTM gain also although that’s unrealized, but it comes out to be close to 2.8 crore of gain which is appearing in our other income category.
Sanjeev Sancheti
Yeah, we have a clear hedging policy and obviously the accounting is done as per the accounting standards.
Anand B
Okay, okay. And second thing in. In your first quarter phone call you mentioned that you have some plans regarding quantum computing. Can you just elaborate a bit on like what sort of plans you have in quantum computing? Is it like making quantum computers or related to software in quantum computer? Can you elaborate on that?
Sanjeev Sancheti
Actually then also I told you, please have some patience. Once we have the complete quantum policy, we will come to you and we will let you know for basically market Interest at this point of time for competitive information. We not like to share our plans on Quantum as yet. But definitely we are working on the background. Once we have it ready to disclose, we’ll disclose it.
Anand B
Okay. Okay. Okay. That’s fine. And my third question is today you made a. Basically you made a post saying that. Okay, like for FY26 the top line growth would come to around 2000 odd crores. So. But would the revenue go beyond that or you’re still sticking to around 2000 odd crores.
Sanjay Lodha
Top end growth in epidemics as basically as earlier. Also we don’t guide by the final number. Actually you’re already seeing. Seeing the company growing at a phenomenal rate. So definitely basically we will only guide that our growth will be between 30 to 40% CAGR on the organic side. We will still maintain that.
Anand B
Thank you so much.
operator
Thank you. The next question is from the line of Shashank Jha from SB Capital. Please go ahead.
Shashank Jha
Hello.
Sanjay Lodha
Yes.
Shashank Jha
Actually most of the question has been answered. But I want to understand what exactly you do in AI system. Like if you get a India AI order. So are you providing GPUs or you are doing model development? If you are providing GPU then why depreciation is not there?
Sanjay Lodha
So basically you will have to understand depreciation in order that my CFO will answer you. But. But basically what we are trying to do, you need to understand that we are designing the complete AI server. Actually. Okay. Basically on the Nvidia and all these people we work with them. We have extracted the roadmaps around more than around 18 months in advance. Wherein we work with all the new design and architecture. We developed a very. Developed a very efficient product. Then basically once the design is done then basically we buy chipsets from various technology providers. And then we have our own manufacturing capability where we manufacture it and then we finally sell it.
Okay. And once we sell it basically that is along with the GPU. GPUs is only one component of the server. GPUs by itself will not run. Actually they need to be completely a part of the server acting so GPU come as chip to us. Okay. Then that get integrated into the servers and then we sell it to the customer. So the ownership is not ours. Once we sell it to the customer, customer runs it. The gpu. Maybe I’ll ask. So.
Ankit Kumar Singhal
So the business model is when we. When we manufacture servers we affrontly sell it to the customer for customer. It’s a Capex purchase. It may be a Capex purchase, a. Customer for us It’s a revenue event.
Shashank Jha
Okay, so basically you are a provider service provider here Actually, Yeah.
Sanjay Lodha
So basically beneath the application layer we have got the complete stack which we provide. It’s not basically that we have provider of, you know, one type of component only beneath the application layer, the right from compute, the Internet, the storage and then the complete AI cloud stack and on top of it the middleware. So all these things are basically given in the form of a solution bias. It’s not basically just that we are supplying the GP success, because as you know, he mentioned that GP success will not alone work on the system. So that’s the reason it has to be understood as a complete solution which we are providing.
Shashank Jha
Okay then what is your role in data centers? Like do you have a different segment?
operator
Sorry to interrupt. Please rejoin the queue for more questions.
Sanjeev Sancheti
But let us answer this question because. It will create confusion like AI system, data center, sub related.
Sanjay Lodha
Is it clear now?
Shashank Jha
Got it. Thank you. Thank you sir.
operator
Thank you. The next question is from the line of Chi Huang from Pictet am. Please go ahead.
Unidentified Participant
Yes, Andrea, Management. Thank you. Congratulations on the very strong earnings. I want to ask about the constraint because apparently your revenue is growing very fast. You talk about you don’t have manufacturing constraints, but do you see any other constraint like labor, talent and recently after you have done ipo, doing very well, does that help you to for your overall acquisition, talent acquisition strategy and is that maybe along that line, can you update how many people you actually have in the company and maybe year on year basis, how many engineers? How are you doing on the talent front? Thank you.
Sanjay Lodha
So thank you for your question. It’s a very good question, sir. Thank you for asking such a question. Actually. So really Speaking as basically NetWeb is a company which is very clearly focused into its niche segments. We don’t want to get into any kind of basically box pushing or basically volume manufacturing kind of situation. So we have kept our focus very. I think netf is successful because of that. Only netob has kept its focus very clearly into the supercomputing, into the private cloud, into AI. And all the three segments contribute 90% of my business. And all these three segments we are doing for years together.
None of these segments started somewhere few years back. All the segments are more than 10 year old for us. So basically the major talent which we faced why we went ipo. Actually I don’t know whether I met you earlier or not, but I think I should have told you that basically what happened is that basically earlier when we went IPO because We wanted to retain our talent and to hire new talent. We were 240 people while we went IPO today we are 600 plus. So definitely that thing has been addressed very well because basically it has given us more visibility plus basically so the technical talent is very, very important for us.
If you know we are a product company, we are not a services company. So we have. We invest quite heavily on R and D. So R and D talent is very important for us. Our R and D team is around 100 plus people both software and hardware together. So I think we have been able to definitely clearly been able to come away with the constraint which we had primarily on the talent side and we are doing very good on that. But definitely we are always looking for new talent, good talent. So you will always find if you go to our LinkedIn page you will find lot of openings actually at all times actually.
So we are always looking for better talent, good talent. So that is definitely, that is ongoing process But I would like to tell you that we are much better off as regards finance and all basically really see we are a zero debt company. Our debt raising power is phenomenal but basically we don’t need debt actually because we are able to manage our finances very very clearly. Our technology relationships also basically helps us so as to handle the supply chain. Also because we have large technology relationships with three or four major vendors which are also very long term relationships.
These are not any short term relationships that is helping us. So currently even in this situation where we have the storage and the memory is under shortage but we get good adequate support. Same way basically with Nvidia also we are currently working on the currently orders which we are fulfilling are based on black belt 200 which is same as any other large OEM doing in the world. So basically in India also we are trying to do the India is not at the back, India is at the forefront. We are already working on B3 hundreds, GB3 hundreds on the latest chipsets.
Same way on the intel side we are working on the latest chipsets again on the AMD we are again working on the latest chipsets. So basically before the product release we have access to the roadmaps we start working so the niche and the focus always helps us. And on the manufacturing side also we don’t find any constraint really speaking because you saw the growth but still we are saying that we don’t want to increase our capex primarily till the revenue of 2,500 to 3,000 crores. So approximately we are very good at that. The other thing Basically acquisitions and all.
Definitely we are looking for acquisitions but we are looking for acquisitions which can pay fast up our R and D process because we are basically whatever business we are doing, we are on, we are very happy with it and all the three areas are very, very growth areas. But tomorrow instead we can invest our own engineering team six months to one year to develop something wherein we can get a, get a kind of, we can do acquisition which can speed up that process. That would be good. So we are looking for such acquisitions primarily. I hope I am able to answer your question.
Unidentified Participant
Okay, thank you.
operator
Thank you. The next question is from the line of Sandeep Shah from Equiris Securities. Please go ahead.
Sandeep Shah
Yeah, thanks for the opportunity and congrats on a good set of numbers again. Ritesha, this is a question to you with reference to earlier question with Google’s CPU and Amazon’s premium OpenAI tie up with the Broadcom are we also started doing some design RD on these kind of a platform because as of now we are in prevalence and partnership with the amd, intel and Nvidia. So do you believe these hyperscalers new chips can be also adopted by the enterprises or this could be more for their internal work.
Hirdey Vikram
So thanks for your question. So you know, first of all I would say that as we mentioned earlier also for example for Quantum we are unable to disclose much details at this stage. Likewise for chip designing etc as well, we are unable to disclose too many details at this stage. Maybe we can, we can discuss one on one on, on this front. But yes, as we mentioned clearly that we are working on different technologies already be it, you know, x86 architecture based systems, be it Nvidia based GPU system architecture or the other, you know, probable, you know, options which are available.
So we are working on all those fronts. But yes, I mean disclosing the details at this stage would be too early for us to do it in this call.
Sandeep Shah
Okay. Okay, fair enough. And just a clarification. Our target of 1/3 for strategic order by Q4 of this financial year is for the total strategic order size of 21184 cr right?
Sanjay Lodha
That is correct. That is correct, Sandeep. That’s our target.
Sandeep Shah
Okay. Okay. And Sanjay sir, is it fair to assume even in 4th quarter we can have a credit for PLI if government approval comes on?
Sanjay Lodha
Looks like. Looks like. Looks like.
Sandeep Shah
Okay. And last question, any other order pipeline getting created for the strategic orders maybe.
Sanjay Lodha
For the first time that’s ongoing process. There is a huge basically opportunity on our hand which we Are constantly working. But as we mentioned, we are not guiding on the strategic orders. We are announcing as we are getting it. So we still maintain the same.
Sandeep Shah
Okay, and the last question. Fourth quarter is generally seasonally strong for business outside strategic orders. Do you believe same can repeat in this financial year as well?
Sanjay Lodha
Your wishful thinking really helps us to think positive.
Sandeep Shah
Okay sir, thank you.
operator
Thank you. Ladies and gentlemen. In order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit your questions to one per participant. Should you have a follow up question, please rejoin the queue. The next question is from the line of Amansoni from NWES Analytics Advisory llp. Please go ahead.
Aman Soni
Hello,
operator
Can you please speak a little louder?
Aman Soni
Firstly, congrats for good rest of numbers.
Sanjay Lodha
Thank you.
Aman Soni
Recent spike in the commodity price, especially copper. This is critical for power transmission and data center infrastructure. How do you see the impact on economies and timelines of AI led data centers deployment in India? Are you observing any deferment of orders, demand slowdown or longer decision cycle for customers due to high power and infraforce? Or does the AI driven demand remain largely insulated?
Sanjay Lodha
Sir, actually your question is really interesting but basically. Actually I personally feel the copper prices are going up because of the data center demand rather than basically copper pricing restricting data center demand. It seems a very very far thought thing actually really speaking because the way the data centers are growing, definitely copper prices are really I think getting stronger because of that. Overall metal sentiments are different but still I feel that’s the reason. So I personally feel because the data center boom and the kind of opportunity is there. I don’t think copper pricing will really impact or slow down the growth or something.
Definitely it will factor in. Basically the cost will be higher because of electrical components and all. We don’t deal in most of them. We also use copper but our copper use is limited. It is not that much actually. Primarily we have some copper use in our servers actually and some components it’s being used. But still I personally feel that these prices, whatever price hike is happening on the copper side of it, the industry is such a basically vast high technology industry will easily be absorbed and it won’t slow it down.
Aman Soni
Understood.
operator
Thank you. The next question is from the line of Raman KV from Sequent Investments. Please go ahead.
Raman Kerti Venkata
Hello sir, can you hear me?
Sanjay Lodha
Yes .
Raman Kerti Venkata
Sir, I have two questions. Basically one is I just want to understand what’s the difference between your organic order book and strategies? Strategic order book like is the difference between like in terms of revenue recognization or the project cost. That’s my first question.
Sanjeev Sancheti
Okay. So when we said what is organic inorganic. There are there. There are certain very large possible orders with the company is pursuing business. These will be large orders which are generally are. Could be 400, 500,000 crores. We call them strategic order. There are no difference in the accounting policy, the revenue recognition etc. On the margin side larger order. We’ve already guided that these will be about 200 basis points lower at the PPT level. I think that’s the difference there. Otherwise no difference in the accounting treatment etc. I hope that answers you
Raman Kerti Venkata
understood. Sir. Sir. And so if I’m excluding this execution of this strategic order in Q3, my 9. Our 9 month revenue comes around 1000 or 1100. With the current quarter revenue around 400 crores. If my understanding is right. Am I right?
Sanjeev Sancheti
Should be. Should be in the same more or less. More or less, right?
Sanjay Lodha
Yeah, more or less. Right.
Raman Kerti Venkata
So basically on xof strategic order we are able to do around 400 crores of revenue on a quarterly basis.
Sanjeev Sancheti
No, no. We are not saying that every quarter. Will not be same. We are not a FMCG company. Understand. So be guided by what we have given for an annual guidance. Quarter on quarter it is. It’s not casting stone that every quarter will be 400 crores.
Raman Kerti Venkata
No, no. I just want to understand whether this business is a. Like a cyclical or periodic in essence, basically whether the first half is better in terms of revenue recognition or usually like a EMS company where the revenue flows towards the end of the year. So I just want to understand that from that point of view some different.
Sanjeev Sancheti
In first quarter, first half and second half. But quarter on quarter, different year we have seen different quarters doing better. So in some. Some years we have seen Q3 to be the best. Some years we’ve seen Q4 to be best. It is impossible.
Raman Kerti Venkata
So basically second half is better.
Sanjay Lodha
Second half is better than the first half.
Raman Kerti Venkata
Oh, okay. Answer this. 500 crores of organic order book. What’s the timeline for you to execute these orders?
Sanjeev Sancheti
On a ballpark figure, 450 is already built, right?
Sanjay Lodha
Yeah. Order book is basically our order book. Billing cycle is 12 weeks to 16 weeks normally. Okay.
Raman Kerti Venkata
And how long will it will this L1 order of around 300 crores will it take for you to recognize in the order book like convert it to a proper order book?
Sanjay Lodha
I think within next 8 to 10 weeks it should be there.
Raman Kerti Venkata
Okay, sure. Thank you sir.
Sanjay Lodha
Thank you.
operator
Thank you. The next question is from the line of from SRI Investments. Please go ahead.
Onkar Ghugardare
Sir, I just had one question. With everything looking so positive, what could go wrong with the business? And I’m not talking about the short term challenges here like Chip and all talking about some long term, any long term issues you could face which could derail the growth of your company.
Sanjay Lodha
Really speaking. You. I’ll have to spend a night to think about it actually because basically if.
Onkar Ghugardare
You can just highlight three, four main points that would be helpful.
Sanjay Lodha
Yeah, one minute. Let me tell you like, basically like if you really see this is I think the 12th quarterly result which I have presented after listing you will see consistently every quarter we have grown. Every basically if you really see basically the growth has been very, very consistent. It’s very difficult to do this kind of business because this is just because of our niche and focus. So basically I think it’s. We are not into a volume company or something of that nature. So it’s primarily quite good. And overall we feel we don’t find any major kind of any black swan.
Even if it comes tomorrow, if earthquake comes or basically something happens to the world and company, we also cannot do anything about it. But overall other than that I don’t see any major challenge ahead. Yeah.
Onkar Ghugardare
Okay. So like you are saying that 30, 40% kind of growth, I mean even if Maybe in next two odd years your base goes up, that 30, 40% run rate is quite achievable.
Sanjay Lodha
You are saying that at least next two to three years. We are, we are targeting that.
Onkar Ghugardare
Okay. Are you thinking anything about the capacity addition after 25003000 crore?
Sanjay Lodha
Yes, definitely some kind of VR capability based. So it’s an ongoing process which keeps on going. So definitely that requirement will there we are fully cubed to do that.
Onkar Ghugardare
So like how much time it will take for you to like ramp up that once you start think like you start doing it.
Sanjay Lodha
Actually again, again these plans are very, very close to the company. Actually for competitive information we would not like to share that.
Sanjeev Sancheti
But just to kind of give you the comfort that business will not be constrained by capacity.
Sanjay Lodha
That’s true.
Sanjeev Sancheti
We’ll do what it needs to be done if we have business to be done.
Onkar Ghugardare
Okay, thank you sir. That helps. Thanks.
operator
Thank you. The next question is from the line of Meloni Mehta from Munar Capital. Please go ahead.
Miloni Mehta
Thank you for the opportunity but actually most of my questions are already been answered.
Sanjeev Sancheti
Thank you ma’. Am.
Sanjay Lodha
Okay, thanks.
operator
Thank you. Ladies and gentlemen, due to time constraint this was the last question for today. I now hand the conference over to Ms. Renu bed for closing comments. Over to you, ma’. Am.
Renu Baid Pugalia
Thank you everyone for your patience participation. I would now like to have to hand over the call to Mr. Sanjay Lodha for his closing comments. Thank you. And over to you, sir.
Sanjay Lodha
Thank you, Renuji. Thank you. Thank you to participants and great partnership and the great trust which you have installed upon us. We’ll do our level best. Thank you so much.
operator
Thank you very much on behalf of ISL Capital Services limited that concludes this conference. Thank you all for joining us. And you may now disconnect your lines.