Netweb Technologies India vs Coforge Q4 FY26

Netweb Technologies delivered a stellar Q4 FY26 with revenue of ₹7,737 crore, up 86.6% YoY, driven by a 459.6% surge in AI systems which now constitute 43.4% of revenue. PAT grew 65.7% YoY to ₹76 crore, with margins stable at ~9%. The company enters FY27 with a robust order book of ₹2,400 crore (including L1), exceeding last year's total revenue. Management guided for 35-40% revenue growth and 13-14% EBITDA margins over the next couple of years, excluding strategic orders. Key risks include potential supply chain constraints for AI components and execution delays in large strategic orders.

Guidance read

Revenue growth 35-40% for next couple of years: Management guided for 35-40% revenue CAGR over the next 2 years, excluding strategic orders. EBITDA margin 13-14% for next couple of years: Operating EBITDA margin guided in the range of 13-14% for the next couple of years. No significant capex in FY27: Management indicated no major capex planned for FY27, only routine maintenance capex. Strategic order execution over next 3 quarters: The remaining strategic order book (₹1,600 Cr) is expected to be executed over the next three quarters.

Risk read

Key risks include Component supply chain pressure — Surging global AI demand is putting pressure on component prices and supply chains, which could impact margins if not passed through.; Execution delay in strategic orders — Analyst noted that no large order wins or L1 announcements were made in recent quarters, raising concerns about pipeline conversion.; Margin compression from product mix shift — Despite higher base business share, gross margins did not improve sequentially, indicating potential margin pressure from AI segment mix..

Promise ledger

Scorecard data is being built as historical quarters are processed.

Coforge delivered a strong FY26 with 29.2% USD revenue growth, driven by broad-based vertical strength (healthcare +98%, travel +62%) and 21 large deal wins. EBITDA margins expanded 430bps YoY to 18.6%, aided by AI-led automation and G&A cost containment. Q4 EBIT margin hit a record 16.6%, up 370bps YoY. The executable order book stands at a record $1.75B, up 16.4% YoY, providing good visibility. Management guided FY27 consolidated EBITDA margins of 20.5-21% and EBIT margins of 15.5% (consolidated) / 16.5-17% (standalone), with FCF/PAT expected at 100%+. A planned exit of ~$20M low-margin India business will temporarily impact Q1 revenue, but overall growth is expected to be robust. Key risk: sustained weakness in the BFS vertical, which grew only 12% in FY26 due to a large client account issue, though management expects improvement.

Guidance read

FY27 Consolidated EBITDA Margin 20.5-21%: Management guided EBITDA margins of 20.5% to 21% for FY27 on a consolidated basis, driven by AI automation, G&A leverage, and Enkora synergies. FY27 Standalone EBIT Margin 16.5-17%: Standalone EBIT margin expected between 16.5% and 17% in FY27, excluding Enkora amortization. FCF to PAT at 100%+ from FY27: Free cash flow to PAT ratio expected to be at least 100% from FY27 onwards, up from earlier guidance of 70-80%. Q1 FY27 Revenue Flattish QoQ Due to India Business Exit: Revenue in Q1 FY27 expected to be flattish sequentially due to discontinuation of ~$20M low-margin India business, with growth resuming from Q2.

Risk read

Key risks include BFS Vertical Stagnation — BFS revenue grew only 12% in FY26, stuck at ~$120-123M for five quarters due to a large client account issue. Recovery depends on management's refactoring efforts.; Hedge Losses Impacting Reported Earnings — Mark-to-market hedge losses of ~₹164Cr for FY26 (₹70Cr in Q4) will continue for 1-2 quarters before tapering, affecting reported other income.; AI Deflationary Pressure on Revenue — Industry-wide AI-driven code generation could compress billing rates, though management argues total cost of ownership remains high and managed services will offset..

Promise ledger

Scorecard data is being built as historical quarters are processed.