E2E Networks Q2 FY26 Earnings: Cloud GPU Growth and AI Opportunities

Ladies and gentlemen, good day and welcome to the E2E Networks Limited Q2 and H1 FI26 earnings conference call

hosted by Go India Advisers. As a reminder, all participant lines will be in the listenon 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 south and zero on your touchstone phone. Please note that

this conference is being recorded. I now hand the conference over to Miss Rashi Khatri from Go India Advisor. Thank you

and over to you ma'am. Thank you and good afternoon everyone. We welcome you to E2E networks limited

H2 um and um H1 and Q2 uh results and earnings call. Um we have with us on call today Mr. Taran Lua managing

director uh Mr. Nathan Jen uh the chief financial officer and Mr. Donet Gaba the company secretary. I must remind you

that the discussion on today's call may include certain forward-looking statements and must be viewed in

conjunction with the risks that the company may face. I now request Mr. Sarin to take us to the company's

business and financial highlights subsequent to which we will open the floor for Q&A. Thank you and over to you

sir. >> Yeah, thank you. Um hi everyone welcome to the Q2 financial year 26 call for E3

network. Uh let me very briefly talk about our business. So uh we are a compute infrastructure player including

cloud GPUs uh based out of India. We have built capacity of more than 3900 cloud GPUs and we have been in the

business of providing compute infrastructure since 2009. So we have built a very strong

engineering team over last uh many years and uh we have built our from the ground up self-service platform uh for running

our entire cloud infrastructure which is accessible uh on the web on my account.2netbooks.com

and uh is our aiml platform which is a part of my account infrastructure. So our platform allows for like a uh a

lot of features which are typical of any uh large cloud provider uh on a self-service basis.

[clears throat] So let us uh talk about some of the updates uh recap some of the updates uh

uh some of which have already been shared with you. So uh your company received uh two uh reasonably large

orders from India mission for 88 crores and 177 crores and uh uh these are primarily uh for uh customers who want

to run uh their own LLM trading for building large domestic LLM models which are primarily focused on India and of

course like uh depending on the choice life of the customer they might be usable globally as well. So uh these two

large orders like uh uh essentially uh will uh we are in advanced discussions with both the India team as well as the

customers on u uh helping to go live with these and uh we expect these to go live very soon. Now we had made a

guidance for FY uh 26th March uh for the monthly run rate uh where we mentioned a number of anywhere between say uh uh

anywhere between 35 and 40 uh CR per month. So with these two orders like uh it looks like potentially we should be

able to meet our monthly run rate numbers uh hopefully much earlier than March. Um and uh uh obviously there is a

great deal of confidence uh because of these India orders that it should be uh possible to do this uh sooner. Now we

are also continuing to see a very robust global demand for cloud GPUs. Uh the demand continues at a price point at

which coppers are available globally and uh at a reasonably higher price point for black GPUs. We are also seeing a lot

of uh demand globally. Uh so basically like what we had positioned was that like as we have visibility into our

capacity utilization for hoppers we would be looking at uh procuring more black.

So given the market scenario of like a lot of demand picking up perils, we are

already in very advanced stages of uh placing the orders for nearly 248 uh blackmail

B200s. Uh this is primarily funded through our internal approval, previous fundraisers and debt from uh uh uh

institutions. Now we spoke about like how the Chennai location had become a bit delayed. So

our Chennai location went live from 1st of August. Now all of our capacity today is completely

online and available for use by our customers. Uh I would also like to once again share the news about the ongoing

acquisition of Darvis Lab asset. Uh so primarily the reason for uh kind of like acquiring the business

of uh Jagat uh was essentially to be able to service like lot of additional self-service

demand for a cohort of customers we were currently not serving uh especially the customer who operate globally

and uh uh the uh even more importantly for was the uh people who were a part of service labs now they are a part of uh

E2 network and uh essentially we believe in their ability to uh contribute overall to uh building up like a very

fine DNA or E2 network. So uh so that's the it's uh one of the reasons for the cloud lab acquisition and uh hopefully

in the medium and long term we'll see a lot of benefits from having access to uh the great talent uh that we have already

built uh within E2E and acquired through Jarvis and where we will continue to work on acquiring more uh uh tech talent

in India. So over a period of time we will see like great benefits of that. Now that being said like uh our focus

continues to be like uh from a management perspective like our focus continues to be to rightsize the uh

cloud GPU infrastructure acquisition in a way that like is prudent and uh as well as uh uh also aggressive. So

prudent and existence I uh I'm trying to reconcile that. So basically prudent from the point of view that like once we

have visibility on like how the capacity would be utilized we want to buy more and by as much as that like we don't

lose business because of lack of capacity. So that's the balance we have always tried to maintain and in future

also our strategy remains to kind of like balance these two. Now that being said like overall the global market if

we look at like we are still uh very very small uh and uh uh which essentially means that like there is

plenty of addressable markets for us to pursue and uh whatever capacity we build like we are very confident that like we

will be able to utilize that capacity for revenue. So, [clears throat] so that that continues to remain our strategy.

On the platform side, on technology side, we are committed to continue to invest in uh our sovereign technology.

So when I use the word sovereign uh I essentially mean that like we are building technology which is primarily

reliant on open source uh with minimal reliance on u uh interactual software which could be uh subject to uh say uh

encumbrances in the future. So essentially we continue to invest in our technology homegrown technology uh for

our customers for our cloud and we'll continue to do that and uh we foresee like a uh long-term benefit of

continuing with that strategy of having full stack sovereignity. Uh so uh essentially sovereignities like we

have defined it like uh for all our customers that like one is that like we are an Indian cloud GPU provider where

the infrastructure is owned by us. The data centers are physically located in India and the software being operated on

our cloud is primarily built by us or is open source with an ability to redistribute that open source howsoever

we think it. So we have three levels of sovereignity over there and we believe in uh India's strategy of building

sovereignity over the AI model which is what we are seeing uh the investment from India AI mission from where they

are trying to build a sovereignity of uh Indian AI model. So that becomes like four levels of priority and of course

like uh uh like as a country we will continue to uh invest into the entire uh sovereignity platform just like in the

past India has invested into the digital public infrastructure. I think like the uh partnership between public and

private enterprises would lead to and self-sufficiency and we believe that like we are a big part of that equation

uh in India. So with that note I would like to uh hand over the conversation to Nissan our CFO who is present and uh

then we would uh open up the discussion for a Q&A session. Thank you Darun. Good afternoon all. So

I would just run you through the financial highlight. So in the quarter ended September 30, 2025, we reported a

revenue of 43.8 cr which is 21% over the last quarter which is uh upper to June 2025. IDA margin have significantly

improved to 41% from 29% in the previous quarter. Other income comprising interest mainly comprising of

interest on deposit has declined on account of utilization of deposits for the payment of capex as a consequential

to the depreciation and uh our we reported a net loss of 13.5 cr. Now we can open the floor for the

question and answer session. >> Thank you very much. We will now begin the question and answer session. Anyone

who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove

yourself 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 assembles.

The first question is from the line of Bhagya Gandhi from Talal and Bcha stock broking. Please go ahead.

>> Yeah. Hi, thanks for the opportunity. My first question is regarding the capex since you are fully utilized uh with the

two contract that we've received recently. So what is the capex plan for this year and next two years if you can

provide in terms of amount as well as in terms of GPUs? Yeah,

>> let's stop in terms of GPUs. I think like uh so what we believe is that like uh globally what we have seen and we

hope that that would get replicated in India is that uh the blackwells are going to be much bigger than hoppers in

terms of like global utilization of that infrastructure and uh the price point for blackwells is different. So there is

no cannibalization for blackwell uh cannibalization of hoppers because of blackwell. So we don't expect that to

happen. So overall we believe that like uh uh whatever number of hoppers we have acquired like it could be the blackwell

could be anywhere uh between 2x to uh 8x that number. So when we run through the entire cycle we will know. So like I

mentioned that like we are both prudent as well as aggressive. So we'll continue to operate both uh credentially as well

as aggressively to acquire uh more capacity opportunistically. So as we uh are immediately planning to

acquire about 248 black wells. So as soon as they are deployed or while we are in the process of deploying them if

we see that like uh there is potentially more uh capacity that can be utilized uh based on the inputs that we keep getting

from uh overall the market and the ecosystem. We might decide to kind of like double up that number all the way

to 4096 in the uh before March. And uh uh we believe that like another 12 months or so [clears throat] we may keep

acquiring blackmail until we are ready to uh until the next generation becomes ready to ship and uh becomes available

for uh uh receipts like in the Indian market. So, so we believe that there is a long runway to be able to answer that

question today that what's the maximum capacity but I think like uh on an immediate basis I think anywhere between

2048 to 4096 GPU u should be there >> this this you are mentioning before March this March you are saying March 26

>> yeah I'm not talking about deployment but like in terms of like uh uh so one is of course like 208 like is already

underway Okay. Uh under process. So uh potentially like another 2048 like even if it goes under process. So whether

that deployment will happen in Feb or March or later that would be hard to say today unless we place those orders uh

with the vendors. >> So can we assume like 2048 if average pricing for one Blackwell G Blackwell

GPU is closer to 50 lakhs. Can you assume like a thousand crex by FI26 before the closure of FI26?

>> Uh see it's hard to kind of like uh put numbers like that. Like I said that like look uh the pricing is dependent on a

lot of things. Uh so let us not put like uh uh uh kind of like a hard number to uh these things but uh we we are

committed to capac building building like uh uh sufficient blackmail capacity with a view not to lose any

opportunities for uh blackmail infrastructure coming our way. >> Got it. And so second question is

regarding the purchase of service and consumables. I believe that is largely with respect to Chennai facility and

that is largely done with. So can you assume that 14 crores would be the run rate going forward in future quarters as

well? See some difference would be there before the lateral capacity gets added

in terms of that when uh your utilization goes high the cost obviously goes higher. Uh and we continue to build

capacities for non- flagship GPUs for GPUs for storage and many other things. So uh that being said that like uh

broadly that is in range that like it will not change drastically uh unless we add a few more clusters of

couple of thousand GPUs till that time we don't expect it to change drastically but like uh that number obviously would

change >> [clears throat] >> uh but not to a significant extent.

>> Got it. And sir, just regarding the data center capacity, how much megawatt do we currently have and how much do we

require with the blackwell capacity coming on stream? If you can share some light on that older, we have some of the

older capacity that we classify close to 1 megawatt or so. Then the newer capacity that we built in the recent

past like last two years or four including the Chennai one, the capacity available to us is about uh 9 megawatt

plus 1 megawatt holder capacity. So that's an overall of about 10 megawatt or so of capacity. So broadly if you

look at 10 megawatt you're looking at like something somewhere between 8,000 to 10,000 uh cloud GPUs can be made

available over there. That being said like our Chennai facility uh uh like we have the ability to kind of like uh get

more capacity over there at a reasonably short. >> Got it. So just a follow up on the

depreciation part. Uh is the depreciation charge for the uh new gross block already capitalized? I mean the

it's there in the PLL right now. We are a 42 crore run rate. So that would be the largely depreciation number for

following quarters as well. >> Let answer that question. >> Yeah. So I think uh the number would be

broadly similar but only one point that Chennai cluster became active on 1st August. So one month depreciation would

be a additional number. >> Got it. Got it. So we can assume like 50 cr uh depreciation run rate for the

entire year. Uh sorry for the next coming quarters. >> Yeah. Should be on the same lines.

>> Got it sir. Thank you so much. I'll get back in the queue and all the best for the future. Yeah.

>> Thank you ladies and gentlemen. In order to ensure that the management is available to address questions from all

participants, we request you please limit your questions to two per participant. If you have a follow-up

question, you may enter in the queue. The next question is from the line of an from semi private limited. Please go

ahead. >> Oh, good evening sir. Can you hear me? >> Yes. Yes. Yes. Please go ahead.

>> Yeah. Uh I just want to get this thing one thing. The data centers which you are operating that is of third party is

not all of them >> right yeah we are not we don't own any data centers so these are all third

party data centers yes >> okay so recently uh TCS announced that they'll be installing a 1 gawatt data

center in uh inra uh so and they said that uh the main customers will be for accelerators for

cloud GPU accelerators So will E2 networks be uh client or would be participating in that data center?

>> Um I think this is a question which is a bit premature. I think like we would like to we like to see a data center

where we are buying capacity. So once they build those data centers and they have the capacity available for sale we

would be happy to consider them along with all the other players like so like we essentially go by merits of any

player before buying any services. So if TCS is in the market to f those we are happy to speak to them of course.

>> No I'm saying are like talks underway or something or like >> not currently not currently.

>> Okay. Okay. Uh my second question is you said the uh MR for March 2026 would be uh the same like as you mentioned before

34. Yeah. Yeah. Weated our guidance based on the confidence that we have received from India mission where if we

put the two orders together then that it is about 20 crores plus uh MR coming and then we have another uh quarter and a

half to build up more runway. So we are reasonably uh confident of uh meeting the guidance that we have given earlier.

>> Okay. So would you say that in next quarter so would you reach that MR? >> You see the guidance we have given is

for March 26. So we would like to stick to that hopefully like it should be earlier than that. Uh obviously because

like we feel that like these are uh these deployments are uh imminent. So and then when they go online like uh

obviously they will start showing up. >> Okay. Okay. Uh I just also like last ask questions. I just want to get some

information. Right. So currently you have 3,900 plus GPUs available right that that is total capacity. So so

previously you mentioned 8,000 to 10,000 cloud GPUs that is apart from the AI GPUs that uh that is available or there

is a potential. So I think somebody asked a question about like uh what's the uh data center capacity. So I was

like essentially talking about the data center capacity can contain that many GPUs doesn't mean that we have that many

GPUs today. >> Okay. Okay. Okay. Okay. Thank you so much. I'll get back on. Sure. Sure.

>> Thank you. The next question is from the line of Kesha from Nvesh. Please go ahead.

>> Yeah. Hi. Thanks for the opportunity. Hope Yeah. Hi sir. Hope I'm audible. So right regarding the recent order that

you want to India emission. So as you can see that realization for this order appears to be on the lower side. So like

which could potentially extend the payback period. So could you provide some color on the margin profile for

this project and we should like what what margin should we expect going forward?

Uh I think like overall like once we actually go into implementation and then we actually look at like all the

requirements that might come through whether through India or through the customers who have received these

allocations. Uh only then we will be able to comment on like uh margin profile looking back.

So currently we are not able to kind of like uh say whether it would be uh too low or too high or whatever. So I think

we'll have to do a look back to figure out that like uh how the overall margin profile turns out to be.

So like are you in line with the margin guidance that we earlier guided the guidance like has been uh always

that like I think like we have the ability to hit somewhere close to 70% plus minus something.

So uh we stand by that like from an overall company perspective. >> Got it. And is there any visibility that

we have got on the software side on the so cloud? >> Uh no not currently. There is no uh uh

immediate visibility or revenue on the website. >> Got it sir. I'll come back in. Thank you

so much. Sure. >> Thank you. The next question is from the line of Shuba Madagarval from BS

Securities. Please go ahead. Hello. Yeah. Am I audible? >> Yeah. Yeah. Yeah. Hi. Yeah.

>> Yeah. Yeah. Hello. Hi. Hi. So, I just have a one question. Uh like what is the useful life that you take for your GPUs

uh for the depreciation consideration for the depreciation purpose? I I believe it is like as for the company's

act which is for all business and uh mostly useful life. We see that

like for GPUs or CPUs is at least like uh a easily about 7 8 years >> 7 8 years. Okay. Okay. Okay. That that

was the question I best of luck to the side. >> Thank you. The next question is from the

line of Vun Gandhi from Fredent Asset Management. Please go ahead. >> Hey, thanks for the opportunity. So

Taron uh my question to you is on the AI development side in India uh and as far as my understanding is if

someone is using an LLM API the computing happens on the LLM's end >> so essentially the computing will happen

on the on on foreign waters foreign land uh and and what I wanted to understand is in India do you see that significant

of compute requirement because This AI development is happening through APIs and I'm not sure how much is happening

through through through APIs and if it is happening then it's it's not much of a big market for us

>> just some clarity >> like there are like so many over there in terms of like what people are trying

to do with AI. So if you look at like the use cases where people need to have a control over the outcome uh where

people need to have security where people need to have the sovereignity of how they are processing the data. So let

us take the case of people with significant number of users. So eventually with significant number of

users if you end up doing uh financial transactions in India then I believe that like a lot of that infrastructure

would need to be set up in India itself. Second is that like these are not the people who would use a one-sizefits all

generic inference APIs to do their business or to run their business. So they would obviously look for an edge

which can only be achieved by having uh dedicated backend infrastructure or the inference APIs where you are able to

make changes to the underlying platform uh with the help of like uh retraining fine-tuning and uh being able to teach

the AI model like so we see a lot more development in the opensource AI which enables all of these things that we are

talking about. So while we have seen that proprietary AI definitely comes up first and uh says that yeah we are doing

something that nobody else can do but what we have seen is that the rate of change in open code is very very rapid

today and uh mostly we see that within one quarter to two quarter or three quarter gap we see open source which is

able to do 90% of what proprietary AI models are able to do Now uh the way to get derive maximum benefit out of those

open source models is by running your own uh or boundary around those models and uh being able to

take like u definite and direct benefit of those models and uh health is not the major uh uh use case alone for AI. AI is

present everywhere. So all said and done like so where the developers are using AI is not the only

question we should be asking. So there is a need and demand for fority over AI which is very important and uh thatation

sorry to interrupt. So the implication is that we're largely dependent on opensource architecture and developments

around that architecture. Um okay so sure that is one way of putting it

>> understood and and just uh a follow up on this. So OpenAI has you know uh opened an office in Delhi and and and

still very premature >> will not be commenting on OpenAI over here in this call. So yes, OpenAI uh is

a large company but uh we are not talking about that over here. >> I see. So the is there a chance we could

be fulfilling their compute uh resource or you won't be comp commenting on that

currently? >> Um too early to say is what I would say. >> Got you. And the last question would be

although the economic life of a GPU you said was 7 to 8 years. Do you think going forward since the technology is

advancing so rapidly do you think 7 to 8 years of economic life would be an appropriate assumption?

>> Uh yeah it has continued to be an appropriate assumption in the past. Now future of course nobody can predict but

what we have seen is that the entire ecosystem of what software has been built on top of what a IMS stack. So all

of these things put together like continue to operate best at a particular price performance over a particular

model of a GPU. So that doesn't change very rapidly without investing rapidly into uh development and data science and

a IML effort. So netnet uh what we have seen in the past is that that continues to

uh kind of like uh uh be the future as well where uh any GPU model that is existing uh that will have a sweet spot

for certain use cases uh which kind of like came in during the uh peak prime time of that particular GPU. So for

instance like currently we see uh both all three big models uh big GPUs like so MP the 800 series 800 and related series

uh and the oper series and the blackwell. So there is a demand for all three of them. So essentially we are

looking at like a uh almost like a six year life cycle across the three of them and blackwell we are simply entering

into that life cycle. So that being said like we believe that like uh uh our assumption that like GPUs will continue

to be uh useful is uh grounded in what we are saying. >> Understood. Thank you very much.

>> Thank you. The next question is from the line of Amina Jen, an individual investor. Please go ahead.

>> Yeah. Hi. Uh thank you for the opportunity. Also I just wanted to understand that other current assets uh

in the balance sheet in H1 has gone up significantly. What I understand is that it's a G GST input receivable uh item.

So I assume that it would it was for our GPUs that we had in CWIP. So uh I heard it was fully registered if

you can address that concern. Why why has it almost doubled in uh amount? uh lean uh can you answer that question?

>> Yeah. So the preliminary amount includes the GST balances and the fixed deposits other current

assets. It's a advance to vendors that we have given across uh for procurement of the new GPUs. That's the other reason

along with the previous balances of GST receivable. So, so the current increase that has

happened from the uh previous amount which has doubled it's not uh GST input hasn't gone up some other items have

gone up that >> yeah yeah so G GST input was already factored in the March financials because

the capitalization was under CIP and GST input was already taken during the

current quarter it has gone up primarily because of advances given for the procurement of new GPUs

Okay. Okay sir. Got it. And uh on the next question was regarding our debts that we've taken about 100 crores. So

can you guide what our pull your debt would be and what our debt utilizations would be for next year.

So that what we have taken the facility is 450CR which would be utilized as per the terms

of agreement with the vendor during the payment cycle. So by end of March that completely should be utilized across by

end of March or the year April. Got it sir. Got it. And just the last question uh regarding sir our initial

two contracts that we've won it's been more on the basis of GPUs being uh you know given out on an hourly basis. Going

forward if we have any enterprise wins will this continue to be our model or will we go move towards a more

traditional cloud-based model which is you know our pay as you go model which will actually avail our platform

benefits. If you can throw some light on how our model is going to shape up going forward.

>> Sorry I wasn't muted. So like so we continue to work on all all aspects of uh how people want to utilize the GPUs.

So there would always be uh customers who want to uh kind of like use uh GPUs for like short periods of time where

they would want to do hourly, weekly, monthly, three monthly and there would always be customers who would look for

like longer term uh engagement in terms of like how they want to uh utilize their GPUs.

So uh so that is uh uh that is there. >> So so just to follow >> sorry to interrupt you Mr. J may

requested to please rejoin the queue. >> Yeah thank you. >> Thank you. The next question is from the

line of Kartikat from Raj investments. Please go ahead. >> Yeah.

>> Yeah thanks for the opportunity. Yes sir. I think I have uh two to three questions. uh first is um so what

exactly is is the mode that uh EQ enjoys you know compared to other data center players and how you're sort of this

whole this LNT uh you know uh buying some of the you know this thing in your uh company right

how how are you sort of leveraging LNT tech into this whole uh place can you throw some light on this just want to

understand you know because there are other data center players. What is that? What is that unique solution that EQ

offers? >> We are a cloud player not a data center player. So essentially we have a full

stack of services. So we have been supporting GPUs all the way since 2019 20 uh kind of time frame and uh we uh

have been working on our software platform for last so many years and uh uh then we have the ability to provide

the solutions of the kind that customers need. So uh like what that's what we would like to believe is our mode that

our customer orientation towards uh providing the support providing the solutions and providing the software

platform on which to run uh either training or inference or model endpoint and deployment uh and the ability to

integrate with our general purpose cloud platform that we had built over last so many years. So all of these uh are a

part of our board and of course like running a cloud involves like doing a significant number of activities that

all need to think of and work together well and uh essentially we have been a team that has been doing that for a long

time and uh the team itself is also a must that we have. And how how how do you how are you

leveraging the NPU announcements that is it helping you in the physical infrastructure in any way that again

gives you some advantage? >> We have mentioned that in the past that like L&T is like uh one of the best

partners for a uh India centered uh uh company. So what I believe is that like uh LNT is a very large group which has

able to open a lot of doors, a lot of conversations with us and uh we continue to uh work with them to explore uh the

various uh inside and outside use cases where we can uh work together. >> Okay. Uh thank you. And uh so I think my

my second question is like I know you mentioned about uh you know the blackwells and all that right uh but you

know there are also other uh vendors like AMD also trying to you know eat some of the pie and I don't know whether

we are uh you know are you looking at uh deploying other GPUs or primarily these are uh again Nvidia GPUs and Again the

second use case I think you sort of addressed the other customer asked this question sorry the other investor asked

this question uh you you started looking at inferencing as well right earlier in your calls in the previous calls you

mentioned about training so I want to understand what is this you know who are these customers what kind of instance

serving are they looking for both on you know black Nvidia GPUs as well as other GPUs

I didn't really understand the question. So like you're talking about like >> right. So first is are you expanding

your portfolio to other vendors like AMD GPUs uh in addition to Nvidia GPUs or just

only focused on uh the cloud? Currently we are very focused on where the customer demand is coming from. So

primarily we feel that the customer demand today is for Nvidia GPUs especially at least in India. Uh that is

one. So >> okay >> what was the other question you had?

>> Yeah. So the second question I looked at your investor presentation. I think you [clears throat] in one of the slides you

talked about and lang uh all of that right these are >> so all of that is a part of our platform

that we have been doing for a while now and uh there are customers who are running many of those features that we

have built >> okay and and these customers are what are they are they uh AI startups

enterprises or are they you know government uh educational institutes all all all sorts of customers.

>> Okay. But I I thought of the training side of the story probably you had government and uh education institutes

but I I was expecting more uh influence side of the story on the AI startups and enterprises but uh you're saying all of

them okay there's no uh breakup here right? >> Yeah. Yeah. Okay.

>> There is no break up right now. >> Okay. Okay. Thank you. All right. Yeah. Thank you.

>> Yeah. Thank you. >> Thank you. The next question is from the line of Akash, an individual investor.

Please go ahead. >> Yeah. Thanks for the opportunity. Uh sir, my first question is uh I think in

the articles of association we have increased our authorized capital by around 1,000 CR. So just wanted to

understand uh are we looking for an imminent fund raise uh in the near term and if yes uh how would you be doing it

like uh through a QIP? >> Uh so we will obviously keep everyone informed about our plans.

So >> yeah. >> So sir actually

[clears throat] we'll make announcements as appropriate >> since since you all have changed the

authorized capital I believe most likely it will be an equity fund base. So if that happens uh you know how much of a

dilution uh uh in the promoter space are we looking at and what could be the impact the price at which tech equity

fun will happen is basically what I wanted to understand like I mentioned that uh we will

obviously uh keep everyone informed about our exact plan. So that's what I would like to say for now.

>> So nothing for this year 26 uh it's not near term. >> So once again the third time I would

like to say the same thing that we would like to keep everyone informed about whatever we are doing. So like if we do

anything we will obviously make a full announcement and uh you'll learn from that.

>> Understood sir. Thanks a lot. Yeah. >> Thank you. Yes, >> thank you. The next question is from the

line of Akil Jawat from Radanta Vision Private Limited. Please go ahead. >> Hi, am I audible?

>> Yes. >> Yes, you are. Please go ahead. >> Uh okay. So my question is could you uh

please explain the current utilization level across uh all your GPUs like H200, S100 and other GPUs you are like black

and all uh all uh see I think like uh in the previous uh quarter that has gone by the overall

utilization for on revenue was close to 35 40% or so. uh the there is obviously like a element of like a lot of

nonrevenue utilization as well. Uh so that was the those were the numbers for like the previous quarter. So we are

obviously targeting uh somewhere between 80 to 90% utilization for the current

infrastructure that we have. uh especially we have the confidence of being able to achieve those numbers

based on the India mission orders uh that have been uh allocated to us. So we we are very hopeful that by March for

the current infrastructure that is already there that utilization will get to about 80 to 90%.

>> Okay. and like uh what utilization is like required for given on the newly deployed.

>> I'm sorry I didn't uh was not able to hear your question clearly. >> Yeah. Yeah. So, so I was saying what

utilization range you are expecting uh for that one on the new deploy

if you deploy if you deploy Mhm. >> Um sorry, sorry about that. Like the

line is uh not clear. Uh >> I'm sorry to interrupt. Your voice is sounding muffled, sir.

>> Uh okay. So now is my voice clear? >> Yes, please go ahead. >> Uh yeah. So I was asking what

utilization range is required for habit and pad break even on the newly developed capacity.

>> Uh let me uh listen to answer that question.

>> So could you could you please repeat what IDA range we require? uh evan pack break even on the newly

deployed capacities is required like what utilization range is required for eit and pack break even on the newly

deployed capacity. So I think it would be difficult to say for a new capacity because uh the cost

structure that we have is a broadly fixed because we would not be able to allocate the cost of employees etc and

the admin expenses to that from a GP margin perspective uh what we foresee is across our GP margin should be ranging

from 80 to 85% across on that uh newly deployed assets. Okay. Okay. And

may we requested to please rejoin the queue. We have participants waiting for the talk.

>> Okay. Okay. Okay. >> Thank you. The next question is from the line of Rajum Kumar Vanatan from RK

Invest. Please go ahead. >> Yeah. Good evening. Can you hear me? >> Yes, we can. Please go ahead.

>> Yeah. Uh I have two questions. So the first question is uh what is the return on equity that we are looking at in the

medium term say about 2 to 3 years uh cuz I know that currently you are uh not making money at the bottom line. So just

want to know what is the medium-term uh targets. See it will always be uh like as we keep

going it will always be a work in progress but ultimately what we are targeting from a uh aida perspective is

to be uh somewhere in the range of 70 plus minus something uh over the medium and long term as the uh volumes grow I

think like somewhere stabilize around those numbers >> 70%. Is that what you said? This is the

>> Okay, got it. So the second question is you mentioned the MR the monthly run rate of 40 crores you want to achieve by

March 26. So I >> 25 to 25 to 40. >> Yeah. So what would be the incremental

cost to the or the cost line will be more dramatic as what you have for >> so I don't think there should be any

major uh cost difference uh major cost difference in the sense that like we are already accounting for a lot of uh uh

cost that we are already incurring for the current infrastructure so I don't think it should massively change

uh so that being said uh what sorry uh that was the question or like was there a question over there so

we already have the infrastructure in place we don't see like a super change

>> yeah okay sir so the uh just to extend the question is I think uh your business kind of requires a lot of capital to be

deployed up front uh so do you think you you will be able to win this race in the longer run uh given that uh you know I

mean art at school you are the backing of L&T but uh I'm just saying that tomorrow if you need to deploy another

say about 10,000 crores of cash uh if the AI really picks up very big in India so uh do you think you will have the

wherewithal to kind of invest that much amount of money? >> Um I think it would be like uh very

speculative to answer that uh question today. So but obviously we are trying to build up uh our capacity as much as we

can. >> Okay. Now but how do you address the risk of obsolescence here? Uh cuz that

is one big risk that you are running. So what uh I mean what is your view on that?

>> We have been in the compute business for almost past uh 16 years. So we have seen multiple cycles of these. So essentially

there are uh so many moving parts to uh kind of like take care to kind of like not have to worry about uh obsolescent

as long as you have uh done things like in a credential manner. >> Sorry to interrupt Mr. Vanatan. We will

request you to please rejoin the queue. >> Thank you. >> Ladies and gentlemen, we will request

you please limit your questions to one per participant. The next question is from the line of Neil Manat from Pico

Capital. Please go ahead. >> Hello. Hi sir. Am I audible? >> Yes, you are.

>> Yes. >> Yeah sir. I wanted to understand our last uh June quarter exit MR was 14

and hence we did 43 and a half crores this quarter. So but our exit empire has been published for this quarter is 16 K.

So uh have we seen some tips in between in uh between months and then we've come back to 16 kores

broadly as soon as we uh receive the long-term orders from the India edition we had to kind of like free up the

capacity from longerterm users or refuse some business from the longerterm users and uh kind of like work with only

capacity which could be deployed preemptively. Yeah. So in that sense like uh kind of like we are in a holding

pattern for our capacity where we are trying to utilize it but not trying to utilize it uh for the long term because

we obviously want to give priority to the workloads that are coming from India edition and uh we also uh kind of like

want to somewhat utilize it uh not keeping it like fully idle. So like the balance between the two I think like uh

that is something we're trying to establish. >> Thank you. The next question is from the

line of Kesha from Nasha. Please go ahead. >> Yeah thanks for the opportunity again.

Question is like uh when do we expect the training to commence for the large projects that we want from the Indian?

Sorry. Say that again please. like when do you expect the billing to commence for the two large projects that

we want from the India? Any like timeline that you can share? >> I think it should be sooner than later

but like we can't put a uh immediate date to that. So but like we are very very hopeful that it could be very very

soon. >> Thank you. The next question is from the line of Shiasuk from Tamil Nadu Investor

Association. Please go ahead. >> Hi sir. Uh thanks for the opportunity. Uh have you done any uh benchmarks

comparing E2E versus AWS or Azure or GCP on training time and cost for the same model and know same data set? Uh and

what was the difference to in time to training the total cost on E2 versus these hypersc hyperscalers? There are

there are certain standard cluster tests for GPUs that our team keeps doing internally

uh with a view to find the uh compute performance and uh we believe that like uh although these are not I don't

believe these are published uh but like what we believe is that like we match the uh performance with the best of them

out there in amongst the new cloud operators. So it's very very close to the performance that everyone else uh is

getting including the standard benchmarks that are out there.

>> Thank you. The next question is from the line of an from Simma Private Limited. Please go ahead.

>> Hey, thanks for the opportunity again. I just want to ask one question. uh in the beginning of this month uh Trump tried

to attempt to restrict uh Nvidia stop black chips to leave us that easily. He's buying it from China but he's also

may try to attempt from other countries other countries as well. So would you have any you know issues or like any

threats based for that? >> I I think that question is a bit above my pay grade. So see basically like we

do our level best to kind of like follow uh like all our uh laws of India and laws uh of the country of origin of

where we are buying our equipment. So we ensure fully that like uh none of our services are utilized by anyone who is

not allowed to utilize those services. >> Thank you. The next question is from the line of Via Gandhi from Dal and Brocha.

Please go ahead. >> Yeah sir, I just wanted to know if you have seen any conversions on the PC side

with respect to enterprise because long run that is the steady state business right and how is the AI uh uh demand

environment from India AI mission. Uh if you can spend some time over there as well

the enterprises will continue to adopt AI. we will continue to work with the enterprises like those uh convertations

and conversions like uh will keep happening. So that being said uh like the overall demand from India mission

like we are very positive about that uh and uh uh we believe that like basically the goal of India mission is to make

India self-sufficient and like the cloud GPU providers I think they are a very big part of that equation and uh we

would continue to contribute to the mission. Thank you ladies and gentlemen due to

time constraints that was the last question for today. I now hand the conference over to management for

closing comments. >> Yeah. So thank you everyone for uh listening to us. I would also like to

thank our entire team uh all our customers, all our uh uh shareholders and uh uh all our ecosystem partners

including the vendors and everyone and uh uh thank you one and all like we hope that like uh we continue to have these

conversations. >> Uh thank you. >> Thank you. Thank you very much sir.

Members of the management with that we conclude today's conference call. On behalf of Go India Advisers that

concludes this conference thank you for joining us and you may now disconnect your lines.