E2E Networks Q3 FY26 Earnings Call: Strong Growth & AI Cloud Expansion

Ladies and gentlemen, good day and welcome to E2E Networks Limited Q3 FI26 earning conference call hosted by

CoIndia Advisers LLP. As a reminder, all participant line will be 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 star then zero on your touchstone phone. Please note that this conference is

being recorded. I now hand the conference over to Miss Swamia Chajer from Go India Advisor. Thank you and

over to you ma'am. >> Thank you Danish and good morning everyone. We welcome you to E2E Networks

Limited Q3 and 9 months FI26 earnings on call. We have with us on call today Mr. Tarun Dwa the managing director, Mr.

Nitan Jen the CFO and Mr. Ronit Gava 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 risk that the

company may face. Thank you and over to you sir. >> Thank you Somia and thank you Dh and

welcome everyone to the uh Q3 earnings call for the financial year ending March 26. Uh let me start by reintroducing E2

network for the new listeners. Uh so E2E was founded in 2009 and is amongst one of the largest uh a IML cloud GPU

players in India currently. Uh we have been a champion of contractless computing since the inception and uh

many of the current large unicorns uh have used E2 networks compute infrastructure when they scaled up

themselves from startup to unicorn stage. uh our infrastructure services platform uh including tier for cloud GPU

including our sovereign cloud platforms uh which can work on premise as well as like uh uh remotely like uh all of that

supports like uh majority of the workloads for CPU computing and uh GPU computing including training inference

vector DBs uh model endpoint deployment and allows for scaling up and uh number of other services that are expected from

public and private clouds today. Now today majority of our workloads uh belong to the a IML domain and we are

working with really scaled up customers uh using our platform and uh uh and the bare metal platform to essentially uh

allow for high performance uh training and high performance inference workloads which are scaled up to hundreds of GPUs.

Now uh some of the uh uh latest developments related to E2E that we wanted to cover in the call. Uh so India

orders as you are already aware uh they have gone into implementation and uh majority of those workloads are expected

to go live around end of January uh 2026. uh the Jarvis lab acquisition of assets

was completed in the in this quarter. uh while we don't expect like a very substantial contribution to the revenue

in Q4 uh this is a technology centric move that rapidly positions us to scale up in the global market.

Now uh there has been substantial uh progress on the MR target we set for ourselves for March 26. I think we are

like 70 75% or even 80% there and uh we continue to uh hold uh our target of like being able to hit somewhere close

to 35 to 40 crores of MR um around March 2026 or thereabouts. Now uh all our partnerships are going great like we

have uh we have continued to strengthen all our partnerships and uh like we have already seen some progress uh in terms

of actual convergence happening uh amongst the enterprise customers through uh one of our largest partnerships with

uh L&T and we continue to uh expect like more conversions happening in the near and the medium-term future.

Now uh we continue to build more blackwell capacity as we have announced from time to time and uh most of the new

capacity is going to operate from our Chennai facility. Uh like once again like uh I would like to briefly touch

upon our sovereign AI platform. So we remain like one of a one of uh a unique businesses in India who has built like

infrastructure software product uh sitting here in India with a team which has the experience of building these

products all the way back since like 2014 onwards

uh since when we started the development of our cloud platform and uh uh so once again I would like to reiterate the

levels of sovereignity that uh we as a nation are trying to achieve. Uh of course there are like a number of

government initiatives which intersect with uh our initiatives on uh the uh push towards uh sovereignity.

So like one is of course like the first level of sovereignity that I think like we have done a very good job of as a

country is localization of all our data in India. Now second part is that like is are the physical buildings the data

centers uh where the data is being stored do they belong to primarily Indian companies like we do that check

mark by having partnered with L&T. So third part is that like are you dependent majorly on open source uh and

your own proprietary software built in India or are you dependent on software which could have compliance implications

uh from outside uh other countries. And fourth is of course that like uh for uh cloud providers who are based out of

India especially based out of uh uh some of the western countries they have to comply with uh global laws that apply to

even uh to the data uh that is stored in India on their cloud platforms. So obviously as a cloud-based out of India

and headquartered in India like we uh provide a complete sovereignity over there to our customers. Then the other

levels of sovereignity are which obviously there are initiatives in this country going on uh especially the

semiconductor mission, the quantum mission, the AI mission. So the model sovereignity is being built uh with the

help of India AI mission, the semiconductor sovereignity is being built with the semiconductor mission.

the quantum sovereignity is being built with the quantum mission. So overall we uh kind of like uh uh find the theme of

solarity is something that like we have been working on uh without using the word for a long time and now we have

started using the word uh and we would continue to do that to expand our services to uh AI natives, the

enterprises uh government customers and uh uh AI natives like which are global in nature and spread all across the

globe. So we continue to deliver on the promise of sovereign AI for all our customers. So with that note, I would

like to hand over the call to uh our CFO Mr. Nathan Jan to give some more uh uh specific inputs about uh uh the progress

made in this particular quarter. Uh over to you Nathan. >> Thank you Tam. Good morning everyone.

Thank you for joining us today and for continued interest in the E2E network. I would walk you through our financial

performance for Q326. Q3 FI26 has been a strong operational quarter for E2E networks marked by

robust revenue growth, improved operating leverage and a continuous investment for future scale. Our

operational revenue stood at 700 million registering a growth of 68.3% yearonear and 59.8 8 quarteronquarter growth. The

growth is driven by higher capacity utilization, increased enterprise workloads and early traction for

strategic and government led the contracts. IITA for the quarter stands at 396 million up by 60.9% yearonear and

120.2% quarteron quarter. IITA margin came at 56.6 reflecting strong operating leverage.

From a profitability standpoint, we reported a PAT loss of 57 million. On a quarteron-quarter basis, PAT has

improved by 58% indicating earnings are already trending positive as a revenue scale on the newly added capacity.

The primary uh reason for the loss is on account of higher depreciation which is increased by 476 million reflecting

commissioning of large GPU deployed in FY25 and 26. Finance cost increasing as we draw our terms loan for the

infrastructure expansion. On a cost structure basis, our total expense for the quarter stands at 304 million which

is in line with the business expansion. We continue to maintain tight control on the cost and the inherent scalability of

our business model allows incremental revenue to flow through at a higher margins. Our monthly revenue run rate

has touched 280 million in December 2025. With India AI mission contracts already initiated, LMT enterprise

engagement gaining traction, we expect a strong revenue momentum to continue. To summarize, Q3 demonstrates strong

topline growth and operating strength. Our focus remains on maximizing GPU utilization, scaling enterprise and

sovereign cloud workloads and delivering sustainable profitability as the our capacity matures. We are confident that

E2E networks is well positioned to bring a long-term sustainable AI leader from India supported by strong balance sheet

and growing revenue visibility. So now I would uh hand over to the moderator for uh question and answer

session. Thank you so much sir. Ladies and gentlemen, we'll begin with the question

and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish

to remove yourself from the question Q, you may press star and two. Participants are request to use handsets while asking

a question. Ladies and gentlemen, we'll wait for a moment while the question Q assembles.

Our first question come from the line of Kesha from NASA. Please go ahead.

Yeah, thank you so much for the opportunity and congrats on the good set of numbers. So like so could you please

help us to understand like E2's approach to the you know cloud reliability. So like in terms of any downtime or service

disruption like what you know redundancy measures are in the place that we have taken. So and like how do we typically

compensate our customers? >> See we typically uh compensate our customers in case of any service

disruption or downtime uh due to uh our reasons uh based on the SLA and uh typically uh what happens is

we have a range of customers. So where there are customers who implement like a full single point of failure disaster

recovery scenarios uh test their backups regularly. So ultimately we are a self-service public cloud uh where uh

obviously we provide all to our customers across multiple locations to uh kind of like do a multilocation

installation with disaster recovery and no single point of failure. And uh uh then obviously like uh in case like

anything happens like our entire team is there to support the customers uh to the best of their ability. So uh like we we

bring in uh uh everything according to like how all the public clouds like throughout the world do.

>> Got it sir. answer like if we have any update on the software business like are there any PC's that are currently

running on on the software side? Uh so uh like no immediate updates in terms of like uh basically like we

continue to do what we have been doing like we continue to build our software, we continue to talk to a lot of uh uh

customers, enterprise customers and we keep validating the requirements and uh then we continue to kind of like

demonstrate our capabilities and uh uh hopefully in the medium term we'll start seeing some action on the software

licensing front for the sovereign AI cloud that uh AI cloud platform that we are packaging currently and we continue

to heavily invest into that >> and so what is the expected timeline for black fields to go live and from which

quarter we can expect the revenue to kick in. Um so like we are expecting in the uh hopefully uh before the end of Q4

we should be able to uh go live uh with the black belts that we have already uh procured and uh we continue to expand

the black bel capacity. >> Thank you so much. I will join back. >> Thank you sir. Our next question come

from the line of Bhavya Gandhi from Bajage alternates. Please go ahead. >> Yeah, thanks for the opportunity. Just

wanted to understand how is the payment cycle with respect to India mission. uh how frequently have they started paying

in terms of service received by the >> India mission has uh actually recalibrated uh uh in the latest uh

documents that they have produced that the payment cycle they have shifted from a quarterly to a monthly. So we hope to

see the benefits of that soon. So we are working towards uh uh kind of like uh finalizing and figuring out like

basically like how those payment cycles would eventually work for us. But like I believe that like that shift is

inevitable from quarterly to monthly. So which is good for us. >> Got it. And when can we expect the next

lot of Blackwell GPUs to arrive because I think we are buying in we have already received we have already received in our

Chennai location 1,024 uh B200 GPUs and uh we are in the process of uh uh kind of like deploying

those and uh hopefully uh in the Q4 itself like we expect to see the deployment completed and uh uh then we

can uh start uh seeing seeing like some action action and traction in terms of like orders uh coming in uh from various

places. >> Okay. And so can we expect like uh order win could be possible in Q1 FI27 onwards

for these thousand blackwell GPUs? >> Uh keeping our fingers crossed like we are hoping as soon as possible.

>> Okay. And have we ordered the next batch of uh Blackwell GPUs for further expansion?

>> So that's an ongoing process. So like uh there are multiple types of GPUs in Blackwell. So we are working on

expanding B2C also and we will continue to expand the capacity on other SPUs as well.

>> Got it. And just one last thing uh with respect to EITA margins if you can just provide some light when can we touch the

70% AITA margin uh if you look on a Y basis there has been depth in the AETA margins so if you can just highlight

what was the >> um I I think like quarter on quarter now like we have extended the AITA margins

and I think it's a matter of like establishing the scale at which point like we will be able to hit the

uh expected number as per the business uh which is closer to 70 than closer to 55 or 60 today.

Got it. Got it. And would you like to guide for next year MR figure? >> So like I guess like we'll uh wait for

the next fall to do that guidance I guess. >> Got it. Got it. Fair enough. All the

best to the team. I'll get back in the queue. Thank you. Thanks. Thank you. Our next question come from

the line of Bhat Gulati from Dalal and Vocha. Please go ahead. >> Yeah. Hi sir, thank you for the

opportunity. I just have a couple of questions. Firstly, can you uh can you line out a capeex for 20? What will our

capeex end at for 26 and then 27 and then if you could also give us a capeex guidance for 28 if possible?

>> Okay. So uh I guess like we'll need to kind of like wait for a couple of weeks for us to kind of like delineate u all

these things. So we are uh kind of like working with our very strong partners and suppliers to kind of like build up

uh the capacity. So we don't want to prematurely uh announce things today. So let us wait

for a couple of weeks and uh we will come up with like basically like what all we are doing.

>> Okay. Got it. So any guidance you can give for 26 and 27 a broad guidance also what we'll end at 26 at least what

>> so we don't want to give the guidance today. So like uh hopefully like again like uh uh give us like a uh couple of

weeks or uh like maybe by the uh by the time we are talking about the next quarter like we'll uh we'll put put

together a guidance. >> Okay, fair enough. So on on the 5,000 plus GPUs that we've mentioned in our

PPT, so uh this uh these GPUs that we'll be deploying will be black 12. So do we see orders coming

>> majorly majorly majorly the expansion is from the blackwell variety of GPUs? >> Yeah. So do we see orders coming on also

in Q4 or will this roll over into Q1 of FI27? Then >> let's see we'll continue updating

everyone as we uh kind of like go into uh the deployment phase. So we've just uh kind of like received the hardware in

last couple of days. So I think like give us like some time we will uh update everybody.

>> All right. And just one last question on terms of the LNT order that we've won in this quarter. Are there any other such

orders in pipeline for the coming uh near term? >> Um see like we obviously continue to

work on like with a lot of customers through LNT and directly as well. So obviously like as and when the orders

rectify we will inform uh everyone. So that's the goal. >> Okay. Okay sir. Thank you. That's about

it. >> Thank you. Our next question comes from the line of Vun Gandhi from Fidient

Asset Management. Please go ahead. >> Hi Darun. Could you help me understand how much of uh India AI mission

contribution is happening to our reported MR if any and additionally with the latest uh B200 ships what would be

the new peak MR that we expect to achieve? >> Okay. So uh like mostly in the last

quarter like uh the India mission contribution has been uh muted. I think like in December it would have been the

most value. Uh but like we expect obviously Q4 to be massively different as the both the uh customers uh one

through India emission uh continue to scale up in January. So that MRR percentage number uh should be like uh

much higher. So uh yeah so so basically like that's an ongoing process. Now second like we don't want to kind of

like give any kind of guidance today like I think like over next couple of weeks in terms of capacity expansion

what we are thinking and uh uh maybe >> I just I just need the MR peak MR capacity do you uh that you would expect

to achieve no guidance or as such just the peak >> there is no there is no upper limit for

us so like we don't want to limit ourselves by saying that like this this is what we

are going to only do. So like we don't have an upper limit in our mind. >> All right. Uh secondly on the India AI

mission contracts these are primarily focused on training workloads right now which we know are typically bury of

India AI mission workloads are focused on building the LLM models for LLM models for India. So I think like

majority of that workload is going to be training workload. So that's the main focus of uh NDI vision as of today.

>> So what is the likelihood that the same LLM developers would also contract with us for inference workloads because the

implication here is that inference more stable revenue >> very very very likely we are already uh

working with the LLM builders uh to uh kind of like run their inference workloads with us.

>> Got you. And um >> so some of them are already running their instance workloads with us and

many of the new ones will hopefully uh are already uh uh working with our customers through our partners uh for

the inference workloads and uh we we continue to see the acceleration of this trend.

So if if someone is contracting for training workloads there's a very high possibility that they would also

probability rather that they would also contract for inferencing workloads. >> Am I absolutely got

>> absolutely absolutely absolutely >> also Tarun uh in December we faced a major outage uh in the Mumbai servers.

So just wanted to seek some clarification on your end and if there's any major client loss uh due to the

outage and what steps have we taken to prevent such prolonged outages in the future.

>> Uh sure sure. So, so the couple of points over there like so basically like our plan was always to kind of like uh

migrate the customers from Mumbai which is a much smaller location than our uh uh Delhi NCR and uh Chennai locations.

So the plan was to definitely migrate those customers out. Now we are working on the plan to migrate them onto uh

newer and uh much stabler infrastructure. On the uh software and operational side like we have made quite

a few changes in terms of like increasing the uh investments into site reliability engineering and working with

uh like some of the uh backend vendors to kind of like strengthen uh uh our overall infrastructure. uh from a impact

point of view I think like uh over a period of time uh it would become clear like what is the impact we are seeing

but uh as I said earlier that like this was like a uh substantially smaller location overall for our infrastructure

so we don't see intent uh we don't expect to see a material uh revenue impact over the medium-term and the long

term but that being said like we are very very conscious of uh uh working very hard towards making sure that like

u uh these kind of incidents are uh completely avoided and uh we are able to do better in terms of like providing uh

support to our customers before an incident happens in terms of uh helping build an architecture that will

withstand any kind of failures on a single zone for us in the future. understood and if I could squeeze one

last question since we spoke in the previous quarter the AI accelerator industry has witnessed a significant

update you know with the Google's uh Google's TPUs becoming the centerpiece of conversation uh for better cost

efficiency and Nvidia's hardware mode is now being contested and the broad expectation is that uh AS6 in general

the adoption would pick up materially now my question to you as the management of E2E is would you be also so open to

adopting AS6 within your infrastructure if the industry trends towards that direction or would E2E remain an NVIDIA

exclusive partner and I asked this because both choices have clear implications on business dynamics uh

including capex ROIC's and I also understand that it's very premature >> to state any conclusive comments but all

I seek is your thoughts on the topic. >> No fair clear fair. So uh one is accelerated computing is

here to stay. Accelerated computing is going to be majority of the workloads uh going online in the future. Uh second

part is that like what is it that the customers are demanding today? What is the road map of our customers? Uh what

is it that our customers are looking at? I think that is more relevant to uh basically like what we end up adding the

capacity on. So like in the near future we again continue to see that like basically Nvidia will be majority of our

portfolio a vast majority of our portfolio and uh uh that is based on the inputs that we continue to get from our

customers. >> Understood. Uh okay got you. >> Thank you.

>> Basically like you see >> customer feedback anytime changes where a customer when customers start

demanding that like look like can you consider X or Y or Z vendor like obviously we are very very happy to

provide what the customers want. So uh what we are seeing today as of today like uh uh is what we have spoken about.

>> Thank you very much. I'll get back in the queue. Thank you

ladies and gentlemen. In order to ensure that the management will be able to address question from all the

participant in the conference, kindly limit the question to two question per participant. Should you have a follow-up

question, please rejoin the queue. Our next question come from the line of group from electron PMS. Please go

ahead. Hello. Am I audible? Yeah. My first question

was how much capeex have we done for the procurement of 1024 Blackwell series and how how have we

funded that? >> Uh okay I'll let Nathan answer this question.

So for the blackwell series uh roughly the capex would be in the range of 6 600 to 650 cr part of which is funded

through a term loan which would uh we have taken from uh the access and sdfc bank.

>> Okay and last time you had guided that 35 to 40 crores would be the peak MRR for the current 3600 GPUs. So do we

still stick to that guidance? Yes, more or less >> answer on that uh we had guided that at

35 to 40 crores uh MRR uh 65 to 70 would be the beta margins. So do we expect in next quarter we can hit that?

>> Uh we are definitely hoping for that. >> Okay. Uh and one more what was the

utilization rate this quarter? I think at the December end we are touching the utilization roughly around

60 to 65%. >> Okay. Uh and so the per hour rent for Blackwell series would be much higher

than the current. So how much could that be? Any ballpark number? broadly broadly what we

are seeing in the international market today is like anywhere between like uh $3 to $4 uh approximately for slightly

uh longerterm contracts. So like we are also u hoping to kind of like achieve those kind of numbers.

>> Okay. And sir uh any further sorry to interrupt you ma'am but limit the question to you can rejoin the queue.

Thank you. Our next question come from the line of Neil Manut from Pico Capital. Please go

ahead. >> Hi sir, am I able? >> Yes. Yes, please go ahead.

>> Thank you for your call. So other than the end line that we got from LND can any sense of

also because >> I'm so sorry Mr. Neil but your voice is breaking. We can't hear you properly.

Is it better now? >> You may continue your question. We'll see.

>> Yeah. So sir, I was asking other than our enterprise client that we got through L&T, can you give us a sense of

our our other enterprise client conversions like not exact numbers but we are 6 months from startups to

enterprises. A broad sense. So we we continue to work with like a lot of enterprises and uh uh AI native

companies and we continue to see u quite a few conversions. Now uh when the conversions are substantial obviously

we'll continue to uh inform >> okay and sir the new capacity of blackwells that you've acquired are

there solely for the India mission or we seeing fractions uh for PCI mission

>> I think like uh a majority of those would go to India mission for sure so uh but like we continue to build

capacity even beyond India emission as well. >> Okay. And so the revenue potential from

these uh thousand blackwell GPUs that we sense what is like the peak sense that we could generate from this any number.

>> Yeah. From a ARR perspective we are looking at like u somewhere close to uh maybe about 250 odd crores per year or

so with,244 black. >> Okay. And uh one sorry to interrupt you

sir please limit your question to two question only. Thank you. Okay ladies and gentlemen

ladies and gentlemen just a gentle reminder please limit your question to two question per participant.

Our next question comes from the line of Hish and individual investor. Please go ahead.

>> Hello. >> Yeah yeah. Hi please go ahead. >> Yeah. Uh so there are two questions uh

how you see the demand going ahead particularly in India X India I mission and the second question is as voice

agents are picking up how you see the infrance business coming to E2. >> So we are very very positive about both

the things. So one is of course the global demand uh is like kind of like uh uh going ahead at a very uh great pace

and so is the Indian demand like so in the recent past like we've seen like u increased demand uh on capacity and uh

uh of course the demand at India mission is also definitely expected to go up. >> Okay. And uh do you see um other than

India enterprise are demanding more GPUs or preferring our platform for inference?

>> Yes definitely. So uh like in a way that like we are uh working with like a lot of partners uh directly and through uh

our big partners uh LNT. So we are seeing that like we should be able to kind of like set up uh like a

marketplace of insurance providers on top of E2 networks platform. >> Okay. Thank you. And uh how you see the

voice agents are picking up because they required a lot number of GPUs. >> I think like there is a lot of interest

in the voice agents like so I think like that is the first major use case in India that is like definitely going

online. uh where people are experimenting with it and like they are putting uh pieces of that in production.

I think that only going to go up from there. >> Okay. So uh are customer preferring us

means are any PC's running at our end or uh can you give some highlight on this? Uh so we don't want to talk about

specific customers like obviously we are working with uh our uh uh partners over here to kind of like work with like

quite a few customers. >> Okay sir. Thank you. >> Thank you. Our next question come from

the line of Abhishek from Incred Capital. Please go ahead. >> Yeah. Hi Abishek.

>> Hi sir. Thank you for the opportunity and congrats on a great quarter. Um sir, two questions. Uh the first one is um

you know uh this uh if I look at the MR for December uh and given the fact that the India

mission started in December. So it seems that we were able to sell our capacity uh for shorter projects uh in the

quarter. So can you just elaborate if uh you know this short cycle demand has recovered because if I remember it

correctly a year ago we had highlighted that some of the demand uh was impacted. That is the first question and uh the

second one sir is on the LNT partnership uh which you have highlighted in the presentation. So it says the one-year

GPU service starting Jan 6. So should we see the incremental ramp up in the March quarter uh for the full quarter from

this order sir? >> Uh okay okay. So one is of course like in the uh quarter ending December like

majority of revenue was non India revenue uh definitely that indicates the uh kind

of like uh uh our increased ability to capture more short-term demand than in the past. Uh so that is two and uh third

is that like uh uh next quarter obviously we are expecting uh majority of India workloads to ramp up uh

hopefully by end of January more or less. So majority of those workloads are expected to ramp up and uh third is that

like we continue to see retraction uh with more enterprise customers. So hopefully that should also be additive.

So we are very very hopeful uh about the next couple of quarters. >> Uh this is helpful sir and just a

broader m um on um you know the global uh demand trends. So with uh you know China uh you know now US allowing

exports of GPUs to China will this create uh uh you know some some form of shortage or demand acceleration uh for

infrastructure providers. Uh yes both like obviously like if a large enough uh country comes in with

additional demand then like both those trends are expected uh in terms of like uh some level of shortage but then uh as

we have seen in the past that like um the partnerships matter over there like where the partners support each other.

So we continue to expect to get like full level of support from all our partners. So that is one and second we

are definitely seeing like a lot of demand acceleration because of uh that amongst other reasons. So other reasons

being like the uh we are now in a far more mature part of the AI uh inference and training cycle uh than in the past.

So now we are seeing like a lot more maturity in terms of like the sustainability of the demand that we are

seeing. >> U very helpful and just one last >> I'm so sorry to interrupt you sir but uh

please limit your question to two. You can rejoin the queue. >> Okay I'll rejoin in the queue. Thank

you. >> Thank you. >> Thank you. Uh next question come from

the line of Nicl Kotari from Alara Capital. Please go ahead. >> Hello. Yeah. Hi. Hi. Yeah.

>> Hello sir. Thank you so much for the opportunity. So, so uh my questions are regarding some bookkeeping questions.

So, uh first is uh do we expect the useful life of assets to be more than 6 years or are they expected to be

replaced entirely post 6 years? >> No. No. Definitely the assets continue to run and operate and uh there is no uh

like uh end of life until the asset continues to operate the asset continues to sell and asset continues to generate

income. >> Understood. So what are our expectations like how long uh should we expect for

the asset to >> we have seen domestic and international providers like uh looking at periods of

around 10 11 years also for some of these assets. Uh but like we are very very hopeful that like 7 to 8 years is

like a very reasonable expectation for these assets to continue to generate uh business for us.

>> Understood. So, so what are we are we expecting down the line like uh giving this rate of useful life and this rate

of depreciation. We continue to be a technology business and uh we continue to expect our uh ROE

expectations based on us being a uh technology provider who is able to add a lot of value addition to our customers

in terms of our uh software and our ability to help them on the training workloads making them more efficient uh

ability to help them in terms of organizing their data etc. So there are a number of number of capabilities we

bring to the table in terms of like through our people and software and uh that will continue to uh add to the uh

uh returns for us in the longer run. >> Okay. So should we expect uh ROE is greater than or north of 20%.

broadly that's that's the way we look at any technology business. So yes absolutely

>> understood and uh when do we expect to achieve that 3 4 years down the line? >> So I guess like uh look back is better

than like me saying when do we achieve it so let let's get to it and then we look back and say yeah it has been done

or not. >> Understood. Understood. Okay sir. Thank you so much. That's it from my side.

>> Yeah. Thanks. Yeah. >> Thank you. Our next question come from the line of Rajkumar Vidinatan from RK

Investment Management Limited. Please go ahead. >> Yeah. Good afternoon sir. Thanks for the

opportunity. Uh am I audible? >> Uh yes sir please go ahead. >> Yeah. Uh sir just couple of question. Uh

so first question is what is the util getting for fi 2627? >> Uh sorry I didn't get the question like

what is the >> what is the utilization uh we are you said that the utilization will be around

70% uh you know by end of Q4 26. So for 26 27 what is the end utilization number we are looking at?

Uh see that goes into a bit of like uh uh speculative territory but then given the fact that like we are very very

focused on uh increasing uh the utilization. So we continue to target like somewhere between uh uh 80

to 90% of the utilization to be done at uh some point of time in the uh in the in the course of the next financial

year. Okay. Uh the reason for asking this question is because in the last call you

mentioned the GPU infrastructure acquisition you will be both prudent as well as aggressive. Uh prudent in terms

of where you have >> we continue to have the same strategy like we are prudent as well as

aggressive. So prudent to ensure that like the uh there is balance and uh aggressive to ensure that like we are

capturing as much of the demand as we can. >> Yeah. So the question is just to labor

on the same question. Uh uh I mean you know I I heard that there are some uh uh you know expected increase in memory

prices. So do you expect that to reflect on the GPU as well and if that is kind of for will you become more aggressive?

>> Some impact would be there in terms of price points on GPUs because of memory. Uh but then like these had to balance

out uh over a period of time. So like uh see we have seen these hardware cycles again and again uh a lot of times in the

past over like last 16 17 years. So where it looks like the end of the world where like you're not getting the

hardware whether it is RAM or other types of hardware and then in a couple of quarters like the uh thundering herd

goes away and then like things settle down to normal. So, so basically like uh I don't see like a long-term impact. In

the medium term, of course, things tend to balance out like the supply and demand balances out and uh uh the

irrationality in prices goes away. So, like it's always a cycle. You have to kind of like just run through the entire

cycle where uh you leverage your partnerships to kind of like do better for yourself and for your customers. So

that's that's the way we have continued to operate like so we'll continue to operate the same way leveraging our

partnerships and making sure that we are able to pass on the benefits of whatever we are able to derive from our partners

to our customers. Okay, got it sir. So this is since we are following

>> sorry to interrupt you sir but uh please this is the second question only. So the question is

>> yeah please go ahead please go ahead. Yeah, >> they're following the SAS model. Uh, so

potentially can we expect to sell more than 100% of our capacity? I mean >> see like it's a it's a elastic uh kind

of like both demand and supply. So it is always possible to build some level of supply in the short term uh for

customers who are kind of like demanding capacity that you may not have available immediately next day but like if it is

required in the next couple of weeks like you always have the ability to sell that capacity.

>> Oh okay. Thank you. Also it's like these are all approximate numbers like when you say a particular per hour price or a

particular SPO price like again it depends on the same hardware being utilized in a number of different ways.

So that results in like a lot of differential pricing. So ultimately like there is no hard limit on say a

particular MR or AR capacity. So there is enough elasticity over there to go both up as well as down.

>> Yeah. So the reason is you will have a better operating leverage and also there will not I mean you'll be selling more

on a concurrent licensing model. So that is the reason I asked you know whether we'll be able to uh you know have a

higher capacity. >> It's not as much as fast obviously uh but like uh definitely there is some

level of electricity which is available. So it's definitely not comparable to fast that you can go uh like uh uh a

huge multiplier up or down but like uh definitely on infrastructure there is some level of elasticity.

>> Okay, got it sir. Thank you so much. Ladies and gentlemen, in order to ensure that the management will be able to

address question from all the participant in the queue, kindly limit the question to one question per

participant. Should you have a follow-up question, please rejoin the queue. Ladies and gentlemen, in order to ensure

that the management will be able to answer all the question from the participant, please limit the question

to one question per participant. Our next question come from the line of

Nishan Jooshi from Equisense Advisers Private Limited. Please go ahead. >> Uh so the first question is that

recently there was a news uh in which the government is planning to go for another round of bidding for around

15,000 GPUs uh blackwell GPUs. Uh sir, at what time frame we expect this bidding to take place? And uh in

previous calls also you have said that >> these are all these are all public announcements. I think like uh the

current date for submitting the bids is I believe like 18th of January. Uh so this is all public information and uh so

this continues to be a very continuous empanelment process on AI mission. So we continue to kind of like provide our

inputs at each uh level of uh participation. So uh so that that that that is definitely expected to kind of

like evolve all the way in. So in a way I think it's a projection of demand that we are seeing from India mission that

like there is current demand of another 15,000 GPUs and that's not the end of it is what we understand.

uh sir I mean is this the part of original 10,000 K and plus 8,000 K of uh uh the bidding which took place or it is

besides that? >> Yeah, I think uh we have seen enough news that like uh there is uh I don't

think uh our interpretation is that like the government is not saying that like we are limiting the AI mission to 10,000

crores. I think in a way that was like a initial allocation. So I think uh like going out on a limp over here like I

think like uh Indian government intends to continue to support the AI mission in a big way.

>> So second query was uh what is our present uh capital work in progress and do we plan to raise any fresh equity in

coming quarter? >> See we always keep the market uh informed about our plan. So we'll

continue to provide like uh uh the information around any kind of uh fund raise uh that we do on the equity side.

>> But uh the query was >> sorry to interrupt you sir uh but please rejoin the queue for more questions.

Thank you. >> An question come from the line of Akillesh Raat from Ridanta Vision

Private Limited. Please go ahead. >> Yeah. Hi. Uh thank you for the opportunity. So my

question is at what utilization level do these new uh blackwell GPU assets are uh start to become uh evict positive on the

encrab basis. >> Um I guess like Nathan would be able to answer this uh question better than me.

>> No from a overall perspective the additional IIDA for the new GPU would tend to around to around 75 to 80%. So

there is a very good headroom across in terms of with a small capacity utilization they would be breaking even

at IIDA levels. >> Okay. Okay. Okay. And uh if I can I can can I ask one more question like?

>> Yes sure please go ahead. Uh so uh like is your current depreciation guidance assuming the immediate utilization or

does it already factor in the commissioning lag if is there any uh like to commission the GPUs?

I think this is more of a look back question than u uh a question that we can like very closely predict. So I

guess like uh let's let let's look back at this question by the end of the next quarter.

>> Okay. Okay. Thank you. Thank you. That's it from the from my all the very best for the upcoming quarter. Thank you.

>> Thank you. >> Thank you sir. Our next question comes from the line of Debas Mazumar from Swan

Investment. Please go ahead. >> Yeah. Hi. Hi Dashish. >> Yeah. Hi Dun. Thank you so much for

taking my question. Uh so uh this 35 cr month monthly uh run rate revenue that you are thinking of achieving in March

27 I'm sorry March 26 uh what is the current capacity utilization that will be reaching on the 1,100 K of gross

block that you have mentioned at the end of H2. >> Yes. So I think the 4,000 or the 4,000

installed capacity. Yeah. >> Yeah. Yeah. So by end of uh December the current salt capacity I think like we

reached about like 60 65% of utilization that was mentioned by Nathan. So that's the current uh data and uh hopefully uh

in the next quarter that utilization percentage should increase. >> Okay. So is it fair to assume that uh on

the current 4,000 GPU unit that you have currently installed the MRR could be around 50 55 KS at the best case

scenario. >> Um so we uh like okay like so uh so these are all elastics. So in that sense

like uh theoretically if it is possible probably the answer is yes. But like practically I think like we are talking

about like uh for the March time frame we are like looking at like 30 to 40 over here

and because uh Tarun the question why I'm coming to is because if you are reporting 3540 K of monthly run rate

then you will be reporting around 4 400 K of top line and 250 K of AIDA uh then your incremental depreciation doesn't

justify this kind of investment. So, uh I'm just trying to understand what I'm missing.

um like okay like I think like you might want to uh kind of like uh look at the numbers more closely and if in case like

you want to take it offline with uh our CFO uh probably you can do that like so my understanding is that like basically

like uh the uh uh overall from a uh run rate perspective like uh in the future the map definitely works out for

Okay. So uh uh okay and and the incremental investments that you have done the uh B hopper uh uh GPUs uh of

the 600 K investment what is the potential revenue or potential run that you are looking at there.

See, we uh are basing uh the projection of the ARR capability from those 1,024 GPUs based on like a uh bottom price. So

uh I think that bottom number would be somewhere anywhere between like say 245 to 250 odd crores uh on a ARR basis.

>> Okay. Okay. Understood. So uh that means your uh with this thousand your incremental revenue would be almost uh

similar to >> so sorry sir but please limit a question to one question. So we have

>> no problem no problem I will I will take it separately with this. >> Thank you.

>> Thank you so much. >> Thank you. Our next question comes from the line of uh Shiti Saraf and

individual investor. Please go ahead. Uh hi s congratulations on the good set of results. I wanted to ask on the Jarus

Labs uh acquisition. You mentioned that uh it opens up a global opportunity. So if you could shed some light on what

sort of opportunity you're seeing in the global market. So what we have seen with uh uh Jarvis uh was that like majority

of their customers were uh operating from outside India and uh that is what made us very very interested in uh kind

of like acquiring their assets uh including their software and people and uh the hardware. So essentially like uh

they've built like a uh highly integrated platform and product that can kind of like onboard people uh uh a

specific set of uh customers uh who operate uh with lower AR pool but like at a higher uh margin and uh people who

prefer like completely self-service without having to kind of like speak at all to any kind of support. So mostly at

E2E we tend to work with larger customers with a bit more handholding compared to Jarvis. So with that respect

like we expect Jarvis to get scaled up in the medium term outside India and uh uh add to the overall capabilities of

the uh E2E platform. >> Understood. That's helpful. Secondly, do you see uh where do you see the company

going or where would you want to spend your efforts in terms of the next years or a couple of years let's say because

obviously the enterprise opportunity is large and it's large enough uh any sort of R&D you're doing uh on what next uh

apart from targeting enterprise segment >> we we continue to heavily invest uh in our software and AI capabilities

So that is one major focus area for us and uh second focus area is to create standardsbased infrastructure

uh including the software layers on top of that uh that people are able to utilize very quickly and uh are able to

get like a great uh return return on deployed resources uh very very quickly. So uh kind of like that that remains our

focus. How to generate the ROI for our customers in terms of like if they get resources compute resources on our cloud

public cloud platform or private cloud platform how they can achieve a better utilization and uh do what they came to

do like faster and quicker compared to at other places. >> Thank you so much. All the best.

>> Thank you. Thank you so much ladies and gentlemen due to the interest of the time that was

the last question for today. I would like to end the conference over to the management for the closing comments.

Thank you and over to you sir. >> Uh sure. Uh so thank you uh uh all of you uh who have joined the call today.

Once again I would like to thank our board of directors including independent directors. Uh thank all our partners,

all our vendors, uh all our customers and uh all of you our uh investors and your families uh to have supported us in

this journey and we continue to uh look forward to uh the support of uh our entire team and uh uh all our ecosystem

partners and uh all our investors. So once again I would like to thank everyone. So thanks everyone for joining

the call and uh it's always enlightening to kind of like listen to the questions and gain insight.

So thank you everyone. >> Thank you sir. >> Thank you on behalf

of E2E Networks Limited that concludes this conference. Thank you for joining us. And you may now disconnect your

lines.