Netweb Technologies shares soar another 10%, up 21% in 2 days. What’s fueling the surge?

Netweb Technologies, a leading provider of high-end computing solutions (HCS) in India, continued its winning streak as its shares surged another 9.8% in intraday trade on Thursday, February 20 to ₹1,617.95 apiece.

Today's jump marked a second consecutive day of gains as the stock hit a 10% upper circuit in the previous session, bringing its two-day cumulative gain to 21%. The rally began after the company announced the launch of Skylus.ai, a composable GPU aggregation-disaggregation appliance designed to optimize GPU resource management for AI, including GenAI workloads.

The company stated that Skylus.ai addresses critical challenges organizations face in utilizing multi-vendor GPU and CPU resources. It offers a vendor-agnostic solution that enhances ideation, fosters collaboration, and accelerates experimentation while optimizing resource utilization and total cost of ownership.

"Skylus.ai simplifies the integration of multi-vendor GPUs and CPUs, enabling the creation of tailored workspaces that align with specific workload needs. Whether utilizing CPUs, full GPUs, or slices of multi-instance GPUs, Skylus.ai ensures seamless and efficient resource allocation. The platform also features Tyrone Kubyts, a workbench offering pre-tested, pre-built, optimized, and qualified container images in the form of an image marketplace. This allows users to access packaged containers or VM disk images that are ready to deploy, saving time and reducing the complexity of application deployment from scratch," the company said in its exchange filing.

In addition to its advanced resource management capabilities, Skylus.ai integrates seamlessly with Tyrone HyperScale NAS—ParallelStor, a hyperscale storage solution that supports file and object access, ensures high throughput and low latency, and efficiently manages large volumes of small files. This integration eliminates the need for multiple data copies and supports global data management across both on-premises and cloud environments, the company added.

Shares down 47% from peak

The company's shares have declined 47% from their record high of ₹3,060, reached in mid-December amid profit booking. They have also been impacted by DeepSeek, a Chinese AI startup that claims to be a free alternative to ChatGPT, developing models at a lower cost and with fewer chips.

Looking at the company's fundamentals, the company reported total revenue from operations of 334 crore in Q3 FY25, reflecting a 30.1% year-on-year (YoY) growth compared to Q3 FY24. EBITDA stood at ₹45 crore, marking a 17.4% YoY increase, with an EBITDA margin of 13.6%.

Net profit (PAT) rose by 16.6% YoY to ₹30 crore, with a PAT margin of 9.0%. Additionally, the company's order book stood at ₹360 crore as of December 2024, as per the company's earnings filing.

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