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Explore the Q1 FY26 results of Nifty 500 companies Chalet Hotels, NetWeb Technologies, and PTC Industries—each delivering over 100% revenue growth. See what’s driving their performance, future outlook, and risks for investors.
🔹 Q1 FY26 Results: 3 Nifty 500 Stocks with Over 100% Revenue Growth
Quarter One (Q1) results for FY26 are out, and the market has clearly revealed its winners and laggards. Among the Nifty 500 universe, three companies stood out with massive revenue jumps, each crossing 100% year-on-year growth.
But what’s behind these numbers? Are these one-off gains, or do they signal sustainable growth for investors? In this blog, we break down the business models, financial performance, and risks of three fast-growing companies—Chalet Hotels, NetWeb Technologies, and PTC Industries.
Let’s dive in.
1. Chalet Hotels – Riding Hospitality & Real Estate Growth
Chalet Hotels is not just a hospitality chain—it’s a diversified real estate and hotel-led developer. With operations in major Indian cities like Mumbai, Bengaluru, Hyderabad, Pune, NCR, Goa, and Rishikesh, the company runs 11 hotels with 3,351 rooms under top global brands like Marriott, Hyatt, and Acre.
Revenue Mix in FY25:
- Hotels & Resorts: ~87% (room rentals, food & beverages, services)
- Commercial Real Estate Leasing: ~11.2% (stable cash flow from 2.4M sq. ft. office space, 70% leased)
- Residential Development: 0% in FY25, but turned into a game-changer in FY26
Q1 FY26 Performance
- Revenue: ₹895 Cr (up 148% YoY)
- Net Profit: ₹203 Cr (up 233% YoY)
- Operating Profit: ₹357 Cr, with 40% margins
The big driver? Revenue recognition from its Bengaluru residential project (Vivaria Mangala), which contributed nearly half of Q1 revenues.
Core Business Performance (Ex-Real Estate)
- Hospitality + Commercial revenues grew 27% YoY
- Hospitality saw 17% increase in room rates, healthy occupancies, and stronger F&B revenues
- Commercial rentals grew ~1%, but management expects 90% occupancy in the next few quarters
Growth Outlook
- Management targets crossing 5,000 rooms in FY26
- Room revenue expected to grow double-digits in the next few years
- Cash from operations up 37%, providing liquidity for expansion
Risks for Investors
- 31% of promoter shares pledged
- Lower ROE vs. industry peers, making returns less attractive
Takeaway: Chalet’s Q1 performance was boosted by real estate recognition, but its hospitality and commercial businesses provide stable, recurring growth.
2. NetWeb Technologies – AI & HPC Growth Story
NetWeb Technologies is positioned at the intersection of AI, supercomputing, and cloud infrastructure—a space witnessing explosive demand in India.
Revenue Segments
- High-Performance Computing (HPC): 35.5% of revenue, up 54% YoY
- Private Cloud & HCI: 35.2% of revenue, up 51% YoY
- AI Business: 14.8% of revenue, more than doubled YoY
Its HPC supercomputers are used by defense programs, research labs, and data-intensive enterprises, including IITs and NMDC Data Center.
The company also launched skyls.AI, a GPU orchestration platform for rapid AI infrastructure deployment.
Q1 FY26 Financials
- Revenue: ₹31 Cr (up 100% YoY)
- Operating Profit: ₹45 Cr (up 125% YoY)
- Net Profit: ₹30 Cr (up 100% YoY)
- AI Segment Growth: 300% YoY, now nearly 1/3rd of revenues
A large defense AI order was the highlight, showing NetWeb’s potential in mission-critical, high-value contracts.
Order Book & Growth Pipeline
- Q1 FY26 Order Book: ₹230 Cr
- L1 Orders (not yet converted): ₹460 Cr
- Combined potential pipeline: ₹600–700 Cr
- Recently bagged a ₹734 Cr AI infrastructure deal under India AI Mission—151% of FY25 revenue
Risks for Investors
- Trade receivables = 30% of sales, up 100% YoY
- Weak cash conversion: negative CFO in FY25, with median profit-to-CFO conversion of just 23% over five years
Takeaway: NetWeb is a high-growth AI and cloud play with robust demand, but investors must watch cash flow sustainability closely.
3. PTC Industries – Critical Components for Defense & Aerospace
PTC Industries is a 56-year-old manufacturer of specialized castings and engineering components for defense, aerospace, and supercritical applications.
Its client list is impressive—Rolls-Royce, Siemens, GE, Alstom, Metso, Emerson—and 75% of its products are exported.
Product Portfolio
- Alloy & Non-Alloy Steel Castings – used in defense and industrial machinery
- Titanium Castings – lightweight, corrosion-resistant, ideal for aerospace
- Machined Components – high-precision, CNC-finished parts
- Subsidiary Aero Alloy Technologies – focused on aerospace components
Globally, only a handful of companies manufacture aerospace-grade superalloy castings, making PTC strategically unique.
Q1 FY26 Financials
- Revenue: ₹97.15 Cr (up 117% YoY)
- Expenses: ₹88.37 Cr (up 140% YoY)
- Operating Profit: ₹8.78 Cr (down 13%)
- Net Profit Margin: fell from 10.5% → 5.3%
Despite strong revenue growth, higher costs and depreciation dragged profitability.
Key Observations
- Other income tripled (₹10.57 Cr), helping net profit stability
- Debt reduced from ₹181 Cr → ₹61 Cr, lowering interest costs
- Cash Flow Concerns:
- Net profit CAGR (3Y): 67%
- CFO CAGR (3Y): just 5.4%
- Inventories rose 181% YoY in FY25
Takeaway: PTC Industries is in a high-demand niche, but operating inefficiency and poor cash conversion remain key challenges.
🔹Frequently Asked Questions (FAQs)
Q1. Which Nifty 500 stocks grew the most in Q1 FY26?
In Q1 FY26, three Nifty 500 companies reported revenue growth above 100%—Chalet Hotels, NetWeb Technologies, and PTC Industries. Chalet benefited from real estate recognition, NetWeb rode the AI and cloud wave, while PTC expanded in aerospace and defense castings.
Q2. Why did Chalet Hotels’ revenue jump in Q1 FY26?
Chalet Hotels’ revenue surged due to recognition from its residential project Vivaria Mangala in Bengaluru. While this was a one-off boost, its hospitality and commercial leasing businesses also showed steady growth.
Q3. Is NetWeb Technologies a good AI stock to watch?
Yes, NetWeb is well-positioned in AI infrastructure, HPC (high-performance computing), and cloud solutions. However, investors should watch its cash flow conversion issues, even though its order book and government contracts look strong.
Q4. What challenges does PTC Industries face despite high growth?
PTC Industries achieved strong top-line growth, but rising expenses, depreciation, and weak cash conversion dragged profitability. Inventory buildup also impacted efficiency, though its niche in aerospace-grade castings remains a strength.
Q5. Are these Q1 FY26 growth trends sustainable?
- Chalet Hotels: Sustainable in hospitality and leasing, but real estate gains were non-recurring.
- NetWeb Technologies: Long-term growth potential in AI and cloud, but needs stronger cash flows.
- PTC Industries: Strong demand pipeline, but margins and efficiency must improve for sustainability.
🔹 Final Thoughts
The Q1 FY26 results highlighted three companies with triple-digit revenue growth in the Nifty 500:
- Chalet Hotels – boosted by real estate recognition, with steady hospitality growth ahead
- NetWeb Technologies – riding AI, cloud, and HPC demand, though cash conversion remains weak
- PTC Industries – strategically placed in aerospace & defense, but needs efficiency improvements
For investors, the lesson is clear: top-line growth looks exciting, but sustainable cash flow and profitability matter more in the long run.
Disclaimer: This article is for educational purposes only and should not be considered financial advice. Please consult your financial advisor before making investment decisions.
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