Ladies and gentlemen, good day and welcome to E2E Networks Limited Q3 FY 2026 earning conference call hosted by Go India Advisors LLP. As a reminder, all participant lines will be in the listen-only 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Soumya Chhajed from Go India Advisors. Thank you, and over to you, ma'am.
Thank you, Danish, and good morning, everyone. We welcome you to E2E Networks Limited Q3 and nine-month FY 2026 earnings con call. We have with us on call today Mr. Tarun Dua, the Managing Director, Mr. Nitin Jain, the CFO, and Mr. Ronit 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. Thank you, and over to you, sir.
Thank you, Soumya, and thank you, Danish, and welcome, everyone, to the Q3 earnings call for the financial year ending March 26. Let me start by reintroducing E2E Networks for the new listeners. E2E was founded in 2009 and is amongst one of the largest AI/ML cloud GPU players in India currently. We have been a champion of contractless computing since the inception. Many of the current large unicorns have used E2E Networks computing infrastructure when they scaled up themselves from startup to unicorn stage. Our infrastructure services platform including fees for cloud GPU, including our sovereign cloud platform which can work on-premise as well as remotely.
All of that supports majority of the workloads for CPU computing and GPU computing, including training, inference, vector database, model endpoint deployment, and allows for scaling up and a number of other services that are expected from public and private clouds today. Today, majority of our workloads belong to the AI/ML domain, and we are working with really scaled-up customers using our platform and the bare metal platform to essentially allow for high-performance training and high-performance inference workloads which are scaled up to hundreds of GPUs. Some of the latest developments related to E2E that we wanted to cover in the call. IndiaAI orders, as you are already aware, they have gone into implementation, and majority of those workloads are expected to go live around end of January 2026. The Jarvis Labs acquisition of assets was completed in this quarter.
While we do not expect a very substantial contribution to the revenue in Q4, this is a technology-centric move that rapidly positions us to scale up in the global market. There has been substantial progress on the MRR targets we set for ourselves for March 2026. I think we are 70%, 75% or even 80% there. We continue to hold our target of being able to hit somewhere close to 35 crores- 40 crores of MRR around March 2026 or thereabout. All our partnerships are going great. We have continued to strengthen all our partnerships and we have already seen some progress in terms of actual convergence happening amongst the enterprise customers through one of our largest partnerships with L&T. We continue to expect more convergence happening in the near and the medium-term future.
We continue to build more rack-mount capacity as we have announced from time to time. Most of the new capacity is going to operate from our Chennai facility. Once again, I would like to briefly touch upon our sovereign AI platform. We remain one of the unique businesses in India who has built infrastructure software product sitting here in India with a team which has the experience of building these products all the way back since 2014 onwards, since when we started the development of our cloud platform. Once again, I would like to reiterate the levels of sovereignty that we as a nation are trying to achieve. Of course, there are a number of government initiatives which intersect with our initiatives on the push towards sovereignty.
One is, of course, the first level of sovereignty that I think we have done a very good job of as a country is localization of all our data in India. Second part is are the physical buildings, the data centers, where the data is being stored, do they belong to primarily Indian companies? We do that check mark by having partnered with L&T. Third part is that are you dependent majorly on open source and your own proprietary software built in India, or are you dependent on software which could have compliance implications from outside the country? Fourth is, of course, that for cloud providers who are based out of India, especially based out of some of the Western countries, they have to comply with global laws that apply to even the data that is stored in India on their cloud platform.
Obviously, as a cloud-based out of India and headquartered in India, we provide complete sovereignty over there to our customers. The other levels of sovereignty are, which obviously there are the quantum mission, the IndiaAI Mission. With the help of IndiaAI Mission, the semiconductor sovereignty is built with the quantum mission. Overall, we some things that we have been working on without using the word for a long time, and now we have started using the word. We would continue to do that to expand our services to AI natives, the enterprises, government customers, and AI natives which are global in nature and spread all across the globe. We continue to deliver on the promise of sovereign AI for all our customers.
With that note, I would like to hand over the call to our CFO, Nitin Jain, to give some more specific inputs about the progress made in this particular quarter. Over to you, Nitin.
Thank you, Tarun. Good morning, everyone. Thank you for joining us today and for continued interest in E2E Networks. I will walk you through our financial performance for Q3 2026. Q3 FY 2026 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 revenues stood at INR 700 million, registering a growth of 68.3% year-on-year and 59.8% quarter-on-quarter growth. The growth is driven by higher capacity utilization, increased enterprise workloads, and early traction for strategic and government contracts. EBITDA for the quarter stands at INR 396 million, up by 60.9% year-on-year and 120.2% quarter-on-quarter. EBITDA margins came at 56.6%, reflecting strong operating leverage.
From a profitability standpoint, we reported a PAT loss of INR 57 million. On a quarter-on-quarter basis, PAT has improved by 58%, indicating earnings are already trending positive as the revenues scale on the newly added capacity. The primary reason for the loss is on account of higher depreciation, which has increased by INR 476 million, reflecting commissioning of large GPU deployed in FY 2025 and 2026. Finance cost increasing as we draw our term loan for the infrastructure expansion. On a cost structure basis, our total expense for the quarter stands at INR 304 million, which is in line with the business expansion. We continue to maintain tight control of the cost, and the inherent scalability of our business model allows incremental revenue to flow through at higher margins. Our monthly revenue run rate has touched INR 280 million in December 2025.
With IndiaAI Mission contracts already initiated, L&T enterprise engagement gaining traction, we expect a strong revenue momentum to continue. To summarize, Q3 demonstrates strong top-line growth and operating strength. Our focus remains on maximizing GPU utilization, scaling enterprise and sovereign cloud workloads, and delivering sustainable profitability as 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. Now I would hand over to the moderator for Q&A session.
Thank you so much, sir. Ladies and gentlemen, we will begin with a Q&A session. Anyone who wishes to ask a question may press star and one on their touch-tone 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 queue assembles. Our first question comes from the line of Keshav from Nuvama. Please go ahead.
Yeah. Thank you so much for the call, sir, and congrats on the good set of numbers. Could you please help us understand E2E's approach to the cloud reliability? In terms of any downtime or service disruption, what redundancy measures are in the place that we have taken? How do we typically compensate our customers?
See, we typically compensate our customers in case of any service disruption or downtime due to our reasons based on the SLAs. Typically, what happens is we have a range of customers. Where there are customers who implement a full single point of failure, disaster recovery scenarios, test their backups regularly. Ultimately, we are a self-service public cloud. We obviously provide all to our customers across multiple locations to do a multi-location installation with disaster recovery and no single point of failure. Then, obviously, in case anything happens, our entire team is there to support the customer to the best of their ability. We bring in everything according to how all the public clouds throughout the world do.
Got it, sir. And sir, if we have any update on the software business, are there any POCs that are currently running on the software side?
No immediate updates in terms of. Basically, we continue to do what we have been doing. We continue to build our software, we continue to talk to a lot of enterprise customers, and we keep validating the requirements. Then we continue to demonstrate our capabilities. Hopefully in the medium term, we will start seeing some action on the software licensing front for the sovereign AI cloud platform that we are packaging currently. We continue to heavily invest into that.
What is the expected timeline for Blackwells to go live? From which quarter we can expect the revenue to kick in?
We are expecting, hopefully before the end of Q4, we should be able to go live with the Blackwells that we have already procured, and we continue to expand the Blackwell capacity.
Thank you so much, sir. I will join back the queue.
Thank you, sir. Our next question comes from the line of Bhavya Gandhi from Bajaj Alternate Investment Management. Please go ahead.
Yeah. Thanks for the opportunity. Just wanted to understand how is the payment cycle with respect to IndiaAI Mission. How frequently have they started paying in terms of service received by the customer?
IndiaAI Mission has actually recalibrated in the latest documents that they have produced. The payment cycle they have shifted from a quarterly to a monthly. So we hope to see the benefits of that soon. We are working towards finalizing and figuring out basically how those payment cycles would eventually work for us. But I believe that the shift is inevitable from quarterly to monthly.
Got it.
Net good for us.
Got it. When can we expect the next lot of Blackwell GPUs to arrive? Because I think we are buying in the—
No, we have already received in our Chennai location 1,024 B200 GPUs. We are in the process of deploying those. Hopefully in Q4 itself, we expect to see the deployment completed, then we can start seeing some action and traction in terms of orders coming in from various places.
Okay. Can we expect order win could be possible in Q1 FY 2027 onwards for these 1,000 Blackwell GPUs?
Keeping our fingers crossed. We are hoping as soon as possible.
Okay. Have we ordered the next batch of Blackwell GPUs for further expansion?
That's an ongoing process. There are multiple types of GPUs in Blackwell. We are working on expanding B200 capacity also, and we will continue to expand the capacity on other GPUs as well.
Got it. Just one last thing, with respect to EBITDA margins, if you can just provide some light, when can we touch the 70% EBITDA margin? If you look on a year-over-year basis, there has been dip in the EBITDA margins. If you can just highlight what was the reason.
I think quarter-on-quarter now, we have expanded the EBITDA margins. I think it is a matter of establishing the scale at which point we will be able to hit the expected number as per the business, which is closer to 70% than closer to 55% or 60% today.
Got it. Would you like to guide for next year MRR figures?
I guess we will wait for the next call to do that guidance, I guess.
Got it. All the best to the team. I will get back in the queue. Thank you.
Thanks.
Thank you. Our next question comes from the line of Bharat Gulati from Dalal & Broacha. Please go ahead.
Yeah. Hi, sir. Thank you for the opportunity. I just have a couple of questions. Firstly, can you line out our CapEx for what will our CapEx end at for 2026 and then 2027? And then if you could also give us a CapEx guidance for 2028, if possible.
Okay. I guess we will need to wait for a couple of weeks for us to delineate all these things. We are working with our very strong partners and suppliers to build up the capacity. We do not want to prematurely announce things today. Let us wait for a couple of weeks, and we will come up with what all we are doing.
Okay. Got it. So any guidance you can give for 2026 and 2027? A broad guidance also, what we will end at 2026, at least what
We do not want to give the guidance today. Hopefully, again, give us a couple of weeks or maybe by the time we are talking about our next quarter, we will put together a guidance.
Okay, fair enough. Sir, on the 5,000+ GPUs that we have mentioned in our PPT, so these GPUs that we will be deploying will be Blackwell. Do we see orders coming in in
Majorly, the expansion is from the Blackwell variety of GPUs.
Yeah. So sir, do we see orders coming on also in Q4 or will this roll over into Q1 of FY 2027 then?
Let's see. We will continue updating everyone as we go into the deployment phase. We have just received the hardware in the last couple of days. I think give us some time. We will update everyone.
All right. Just, sir, one last question. On terms of the L&T order that we won in this quarter, are there any other such orders in pipeline for the coming near term?
See, we obviously continue to work with a lot of customers through L&T and directly as well. Obviously, as and when the orders solidify, we will inform everyone. That is the goal.
Okay. Okay, sir. Thank you. That is about it.
Thank you. Our next question comes from the line of Varun Gandhi from Fident Asset Management. Please go ahead.
Hi, Tarun. Could you help me understand how much of IndiaAI Mission contribution is happening to our reported MRR, if any? Additionally, with the latest B200 chips, what would be the new peak MRR that we expect to achieve?
Okay. Mostly in the last quarter, the IndiaAI Mission contribution has been muted. I think in December it would have been the most value. We expect obviously Q4 to be massively different as both the customers won through IndiaAI Mission continue to scale up in January. That MRR percentage number should be much higher. So yeah. Basically, that is an ongoing process. Now, second, we do not want to give any kind of guidance today. I think over the next couple of weeks in terms of capacity expansion, what we are thinking and maybe—
Sorry, I just need the peak MRR capacity that you would expect to achieve. No guidance as such, just the peak MRR.
There is no upper limit for that. We do not want to limit ourselves by saying that this is what we are going to only do. We do not have an upper limit in our mind.
All right. Secondly, on the IndiaAI Mission contracts, these are primarily focused on training workloads right now, which we know are typically bursting.
Majority of IndiaAI Mission workloads are focused on building the LLM models, foreign LLM models for India. I think majority of that workload is going to be training workload. That is the main focus of IndiaAI Mission as of today.
What is the likelihood that the same LLM developers would also contract with us for inference workloads? Because the implication here is that inference—
Very, very likely.
—would have more stable revenue.
Very, very likely. We are already working with the LLM builders to run their inference workloads with us.
Got you.
Some of them are already running their inference workloads with us and many of the new ones hopefully are already working with our customers through our partners for the inference workloads. We continue to see the acceleration of this trend.
If someone is contracting for training workloads, there is a very high possibility that they would also, probability rather, that they would also contract for inferencing workloads. Am I?
Absolutely.
Got you.
Absolutely.
Also, Tarun, in December we faced a major outage in the Mumbai servers. Just wanted to seek some clarification on your end and if there is any major client loss due to the outage and what steps have we taken to prevent such prolonged outages in the future?
Sure. There is a couple of points over this. Basically, our plan was always to migrate the customers from Mumbai, which is a much smaller location than our Delhi NCR and Chennai locations. The plan was to definitely migrate those customers out. Now we are working on the plan to migrate them onto newer and much stabler infrastructure. On the software and operational side, we have made quite a few changes in terms of increasing the investments into site reliability engineering and working with some of the backend vendors to strengthen our overall infrastructure. From an impact point of view, I think over a period of time, it would become clear what is the impact we are seeing. But as I said earlier, this was a substantially smaller location overall for our infrastructure.
We do not expect to see a material revenue impact over the medium term and the long term. But that being said, we are very conscious of working very hard towards making sure that these kind of incidents are completely avoided and we are able to do better in terms of providing support to our customers before an incident happens in terms of helping build an architecture that will withstand any kind of failures on a single zone for us in the future.
Understood. If I could squeeze one last question. Since we spoke in the previous quarter, the AI accelerator industry has witnessed a significant update, with Google's TPUs becoming the centerpiece of conversation for better cost efficiency. NVIDIA's hardware moat is now being contested, and the broad expectation is that ASICs, in general, the adoption would pick up materially. My question to you as the management of E2E Networks is, would you be also open to adopting ASICs within your infrastructure if the industry trends towards that direction? Or would E2E Networks remain an NVIDIA-exclusive partner? I ask this because both choices have clear implications on business dynamics, including CapEx, ROICs. I also understand that it is very premature to state any conclusive comments, but all I seek is your thoughts on the topic.
No, fair. One is accelerated computing is here to stay. Accelerated computing is going to be majority of the workloads going online in the future. Second part is that, what is it that the customers are demanding today? What is the roadmap of our customers? What is it that our customers are looking at? I think that is more relevant to what we end up adding the capacity on. In the near future, we again continue to see that NVIDIA will be majority of our portfolio, a vast majority of our portfolio, and that is based on the inputs that we continue to get from our customers.
Understood. But okay, got you.
Thank you.
If the customer feedback anytime changes where customers start demanding that, "Look, can you consider X or Y or Z vendor?" Obviously, we are very happy to provide what the customers want. What we are seeing today, as of today, is what we have spoken about.
Thank you very much. I will get back in the queue.
Sure.
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address questions from all the participants in the conference, kindly limit the question to two questions per participant. Should you have a follow-up question, please rejoin the queue. Our next question comes from the line of Krupa Desai from Electrum PMS. Please go ahead.
Hello.
Yeah.
Am I audible? Yeah.
Yes.
My first question was, how much CapEx have we done for the procurement of 1,024 Blackwells series, and how have we funded that?
Okay, I will let Nitin answer this question.
For the Blackwell series, roughly the CapEx would be in the range of INR 600 crore- INR 650 crore, part of which is funded through a term loan, which we have taken from the Axis Bank and HDFC Bank.
Okay. And sir, last time we had guided that INR 35 crore- INR 40 crore would be the peak MRR for the current 3,600 GPUs. Do we still stick to that guidance?
Yes, more or less.
And sir, on that, we had guided that at INR 35 crore-INR 40 crore MRR, 65%-70% would be the better margins. Do we expect that next quarter we can hit that?
We are definitely hoping for that.
Okay. And revenue, what was the utilization rate this quarter?
I think at the December end, we are touching the utilization roughly around 60%-65%.
Okay. And sir, the per hour rent for Blackwell series would be much higher than the current. How much could that be? Any ballpark number on that?
Broadly what we are seeing in the international market today is anywhere between $3- $4 approximately for slightly longer term contracts. We are also hoping to achieve those kind of numbers.
Okay. And sir, any further guide.
Ma'am, I am very sorry to interrupt you, ma'am.
Yeah.
But limit the question to two only.
Yeah.
You can resume. Thank you.
Yeah.
Our next question comes from the line of Neil Munot from PICO Capital. Please go ahead.
Hi, sir. Am I audible?
Yes. Please go ahead.
Thank you for your time. Other than the enterprise client that you got from L&T, can you give me sense of our enterprise conversions also because
I am so sorry, Mr. Neil, but your voice is breaking. We cannot hear you properly.
Is it better now?
You may continue with your question. We will 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 other enterprise client conversions? Not exact numbers, but since you are some startups to enterprises abroad since.
No, we continue to work with a lot of enterprises and AI native companies, and we continue to see quite a few conversions. When the conversions are substantial, obviously we will continue to inform.
Okay. And sir, the new capacity of Blackwells that you have acquired, are they solely for the IndiaAI Mission, or we are seeing fractions for POC—
We have.
—for the IndiaAI Mission.
I think a majority of those would go to IndiaAI Mission for sure. We continue to build capacity even beyond IndiaAI Mission as well.
Okay. Sir, the revenue potential from these 1,000 Blackwell GPUs that you sent, what is the peak sense that we could generate from this? Any number?
Yeah, from an ARR perspective, we are looking at somewhere close to maybe about INR 250 crore per year or so with 1,024 Blackwells.
Okay. And sir, on one IndiaAI.
Sorry to interrupt you, sir. Please limit your question to two questions only. Thank you.
Okay.
Ladies and gentlemen, just a gentle reminder, please limit your question to two questions per participant. Our next question comes from the line of Hitesh, an individual investor. Please go ahead.
Hello.
Yeah. Hi, Hitesh. Please go ahead.
Yeah. So there are two questions. How you see the demand going ahead, particularly in India, ex-India AI Mission. And the second question is, as voice agents are picking up, how you see the inference business coming to E2E.
So we are very positive about both these things. So one is, of course, the global demand is kind of going ahead at a very great pace, and so is the Indian demand. So in the recent past, we've seen increased demand on capacity. And, of course, the demand at India AI Mission is also definitely expected to go up.
Okay. Do you see, other than India AI, enterprise are demanding more GPUs or preferring our platform for inference?
Yes, definitely. We are working with a lot of partners directly and through our big partners, L&T. We are seeing that we should be able to set up a marketplace of inference providers on top of E2E Networks platform.
Okay. Thank you. How do you see the voice agents are picking up because they require a lot number of GPUs?
I think there is a lot of interest in the voice agents. I think that is the first major use case in India that is definitely going online, where people are experimenting with it, and they are putting pieces of that in production. I think that is only going to go up from there.
Okay. Are customers preferring us? Are any POCs running at our end or can you give some highlight on this?
We do not want to talk about specific customers. Obviously, we are working with our partners over here to work with quite a few customers.
Okay, sir. Thank you.
Thank you. Our next question comes from the line of Abhishek from InCred Capital. Please go ahead.
Yeah. Hi, Abhishek.
Hi, sir. Thank you for the opportunity and congrats on a great quarter. Sir, two questions. The first one is, if I look at the MRR for December, and given the fact that the IndiaAI Mission started in December, it seems that we were able to sell our capacity for shorter projects in the quarter. Can you just elaborate if this short cycle demand has recovered? If I remember it correctly, a year ago, we had highlighted that some of the demand was impacted. That is the first question. The second one, sir, is on the L&T partnership, which you have highlighted in the presentation. It says the one-year GPU service starting January 6. Should we see the incremental ramp-up in the March quarter for the full quarter from this order, sir?
Okay. One is, of course, in the quarter ending December, majority of revenue was non-IndiaAI revenue. That definitely indicates our increased ability to capture more short-term demand than in the past. That is two. Third is that next quarter, obviously, we are expecting majority of IndiaAI workloads to ramp up hopefully by end of January, more or less. The majority of those workloads are expected to ramp up. Third is that we continue to see the traction with more enterprise customers. Hopefully that should also be additive. We are very hopeful about the next couple of quarters.
This is helpful, sir. Just a broader macro question on the global demand trends. With now U.S. allowing exports of GPUs to China, will this create some form of shortage or demand acceleration for infrastructure providers?
Yes, both. Obviously, if a large enough country comes in with additional demand, then both those trends are expected in terms of some level of shortage. But then, as we have seen in the past, the partnerships matter over there, where the partners support each other. We continue to expect to get full level of support from all our partners. That is one. Second, we are definitely seeing a lot of demand acceleration because of that, amongst other reasons. Other reasons being we are now in a far more mature part of the AI inference and training cycle than in the past. Now we are seeing a lot more maturity in terms of the sustainability of the demand that we are seeing.
Very helpful. Just one last.
I am so sorry to interrupt you, sir, but please limit a question to two. You can rejoin the queue.
Okay.
Thank you.
I will rejoin in the queue. Thank you.
Thanks. Thank you. Next question comes from the line of Nikhil Kothari from Antara Capital. Please go ahead.
Hello.
Yeah. Hi, Nikhil.
Hello, sir. Thank you so much for the opportunity. My questions are regarding some bookkeeping questions. First is, do we expect the useful life of assets to be more than six years, or are they expected to be replaced entirely for six years?
No, definitely the assets continue to run and operate, and there is no end of life until the asset continues to operate, the asset continues to sell, and asset continues to generate income.
Understood. What are our expectations like? How long should we expect for the asset to continue?
We have seen domestic and international providers looking at periods of around 10, 11 years or so for some of these assets. We are very hopeful that seven to eight years is a very reasonable expectation for these assets to continue to generate business for us.
Understood. Sir, what ROE are we expecting down the line, giving this rate of useful life and this rate of depreciation?
We continue to be a technology business, and we continue to expect our ROE expectations based on us being a technology provider who is able to add a lot of value addition to our customers in terms of our software and our ability to help them on the training workloads, making them more efficient, ability to help them in terms of organizing their data, et cetera. There are a number of capabilities we bring to the table in terms of through our people and software, and that will continue to add to the return for us in the longer run.
Okay. Should we expect ROEs greater than or north of 20%?
Broadly, that is the way we look at any technology business. Yes, absolutely.
Understood. When do we expect to achieve that, three, four years down the line?
I guess look back is better than me saying when do we achieve it. Let us get to it and then we look back and say, "Yeah, it has been done or not.
Understood. Okay, sir, thank you so much. That is it from my side.
Yeah. Thanks. Take it easy. Yeah.
Thank you. Our next question comes from the line of Rajkumar Vaidyanathan from RK Investment Management Limited. Please go ahead.
Yeah. Good afternoon, sir. Thanks for the opportunity. Am I audible?
Yes, sir. Please go ahead.
Sir, just couple of questions. First question is, what is the utility billing for FY 2026, 2027?
Sorry, I didn't get the question. What is the?
What is the utilization? You said that the utilization will be around 70% by end of Q4 2026. So for 2026, 2027, what is the end utilization number we are looking at?
I would say that goes into a bit of speculative territory. But then given the fact that we are very focused on increasing the utilization, we continue to target somewhere between 80%-90% of the utilization to be done at some point of time in the course of the next financial year.
Okay. The reason for asking this question is because in the last call you mentioned that the GPU infrastructure acquisition will be both prudent as well as aggressive. Prudent in terms of where you have the—
We continue to have the same strategy. We are prudent as well as aggressive.
Okay.
Prudent to ensure that there is balance, and aggressive to ensure that we are capturing as much of the demand as we can.
Yeah. The question is just related on the same question. I heard that there are some expected increase in memory prices. Do you expect that to reflect on the GPU as well? If that is kind of forth, will you become more aggressive than—
Some impact will be there in terms of price points on GPUs because of memory. These things tend to balance out over a period of time. We have seen these hardware cycles again and again, a lot of times in the past over last 16, 17 years. It looks like the end of the world where you are not getting the hardware, whether it is RAM or other types of hardware, and then in a couple of quarters, the thundering herd goes away, and then things settle down to normal. Basically, I do not see a long-term impact. In the medium term, of course, things tend to balance out, the supply and demand balances out and the irrationality in prices goes away. It is always a cycle.
You have to just run through the entire cycle where you leverage your partnerships to do better for yourself and for your customers. That is the way we have continued to operate. We will 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. This, since we are following a SaaS.
Sorry to interrupt you, sir. Please thank you.
This is the second question only. Sir, the question is.
Yeah, please go ahead.
Since we are following the SaaS model, potentially can we expect to sell more than 100% of our capacity? I mean-
It's the elastic kind of, like, both demand and supply. It was always possible to build some level of supply in the short term for customers whos 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, then you always have the ability to sell that capacity.
Okay. Thank you.
These are all approximate numbers. When you say a particular per hour price or a particular SKU price, again, it depends on the same hardware being utilized in a number of different ways. So that results in a lot of differential pricing. Ultimately, there is no hard limit on, say, a particular MRR or ARR capacity. So there is enough elasticity over there to go both up as well as down.
Yeah. The reason is you will have a better operating leverage and also, you will be selling more on concurrent licensing model. That is the reason I asked whether we will be able to have a higher capacity.
It's not as much as SaaS, obviously. But definitely, there is some level of elasticity which is available. So it's definitely not comparable to SaaS that you can go a huge multiplier up or down. But 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 questions from all the participants 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 questions from the participants, please limit the question to one question per participant. Our next question comes from the line of Nishant Joshi from Equisence Advisors Private Limited. Please go ahead.
The first question is that recently there was a news in which the government is planning to go for another round of bidding for around 15,000 GPUs, Blackwell GPUs. At what time frame we expect this bidding to take place? In previous calls also, we have said that-
These are all public announcements. I think the current date for submitting the bids is, I believe, 18th of January. This is all public information. This continues to be a very continuous empanelment process on IndiaAI Mission. We continue to provide our inputs at each level of participation. That is definitely expected to go on. In a way, I think it's a reflection of demand that we are seeing from IndiaAI Mission that there is current demand of another 15,000 GPUs, and that's not the end of it, as per what we understand.
Sir, I mean, is this a part of original INR 10,000 crores plus INR 8,000 crores of the bidding which took place, or it is besides that?
I think we have seen enough news that I don't think our interpretation is that the government is not saying that we are limiting the IndiaAI Mission to INR 10,000 crores. I think in a way, that was an initial allocation. I think going out on a limb over here, I think Indian government intends to continue to support the IndiaAI Mission in a big way.
The second query was, what is our present capital work in progress, and do we plan to raise any fresh equity in coming quarters?
See, we always keep the market informed about our plan. We'll continue to provide the information around any kind of fundraise that we do on the equity side.
Second query was—
I'm sorry to interrupt you, sir, but please rejoin the queue for more questions. Thank you. Our next question comes from the line of Akhilesh Rawat from Ridhanta Vision Private Limited. Please go ahead.
Yeah. Hi, Akhilesh.
Hello. Thank you for the opportunity. My question is, at what utilization level do these new Blackwell GPU assets start to become EBITDA positive on an incremental basis?
I guess Nitin would be able to answer this question better than me.
From an overall perspective, the additional EBITDA for the new GPU would tend to around 75%-80%. There is a very good headroom across in terms of with a small capacity utilization, they would be breaking even at EBITDA levels.
Okay. Can I ask one more question?
Yes, sure. Please go ahead.
Is your current depreciation guidance assuming the immediate utilization, or does it already factor in the commissioning lag, is there any lag to commission the GPUs?
I think this is more of a look back question than a question that we can very closely predict. I guess, let's look back at this question by the end of the next quarter.
Okay. Thank you. That's it from my end. All the very best for the upcoming quarter. Thank you.
Thank you.
Thank you, sir. Our next question comes from the line of Debashish Mazumdar from SWEN Investment. Please go ahead.
Yeah, hi, Debashish.
Yeah, hi Tarun. Thank you so much for taking the question. So this INR 35 crore monthly run rate revenue that you were thinking of achieving in March 2027— I'm sorry, March 2026. What is the current capacity utilization that will be reaching on the INR 1,100 crores of gross block that you have mentioned at the end of H2?
Yes, I think.
Or the INR 4,000 crores—
I-
—for the INR 4,000 installed capacity. Yeah.
Yeah. By end of December, the current installed capacity, I think we reached about 60%-65% of utilization. That was mentioned by Nitin. That's the current data. Hopefully, in the next quarter, that utilization percentage should increase.
Okay. Is it fair to assume that on the current 4,000 GPU unit that you have currently installed, the MRR could be around INR 50 crore-INR 55 crore at the best-case scenario?
Okay. These are all elastics. In that sense, theoretically, if it is possible, probably the answer is yes. Practically, I think we are talking about for the March timeframe, we are looking at INR 30 crore- INR 40 crore over here.
Because, Tarun, the question why I am coming to is because if you are reporting INR 35 crore-INR 40 crore of monthly run rate, then you will be reporting around INR 400 crore of top line and INR 250 crore of EBITDA. Then your incremental depreciation doesn't justify this kind of investment. I am just trying to understand what I am missing.
Okay. I think you might want to look at the numbers more closely. If in case you want to take it offline with our CFO, probably you can do that. My understanding is that basically, overall from a run rate perspective, in the future, the math definitely works out for us.
Okay. The incremental investment that you have done, the Hopper GPUs, of the INR 600 crores investment, what is the potential revenue or potential run rate that you are looking at there?
We are basing the projection of the ARR capability from those 1,024 GPUs based on a bottom prize. I think that bottom number would be somewhere, anywhere between, let's say, INR 245- INR 250 odd crores on an ARR basis.
Okay. Understood. That means with this thousand, your incremental revenue would be almost similar to.
I am so sorry, sir, but please limit your question to one question, sir. We have a lot of-
No problem, Tarun. I will take it separately with you.
Thank you.
Thank you so much.
Thank you. Our next question comes from the line of Shiti Saraf, an individual investor. Please go ahead.
Hi, Tarun. Congratulations on the good set of results. I wanted to ask on the Jarvis Labs acquisition, you mentioned that it opens up a global opportunity. If you could shed some light on what sort of opportunity you are seeing in the global market.
What we have seen with Jarvis was that majority of their customers were operating from outside India. That is what made us very interested in acquiring their assets, including their software and people and the hardware. Essentially, they have built a highly integrated platform and product that can onboard people, a specific set of customers, who operate with lower ARPU, but at a higher margin. People who prefer completely self-service without having to speak at all to any kind of support. Mostly at E2E, we tend to work with larger customers with a bit more hand-holding compared to Jarvis. With that respect, we expect Jarvis to get scaled up in the medium term outside India and add to the overall capabilities of the E2E platform.
Understood. That is helpful. Secondly, where do you see the company going or where would you want to spend your efforts in terms of the next year or a couple of years, let us say, because obviously the enterprise opportunity is large and it is large enough. Any sort of R&D you are doing on what next, apart from targeting enterprise segment.
We continue to heavily invest in our software and AI capabilities. That is one major focus area for us. Second focus area is to create a standards-based infrastructure, including the software layers on top of that people are able to utilize very quickly and are able to get a great return on deployed resources very quickly. That remains our focus: how to generate the ROI for our customers in terms of if they get resources, compute resources on our public cloud platform or private cloud platform, how they can achieve a better utilization and do what they came to do faster and quicker compared to at other places.
Understood. 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 hand the conference over to the management for the closing comments. Thank you, and over to you, sir.
Thank you, all of you who have joined the call today. Once again, I would like to thank our board of directors, including independent directors. Thank all our partners, all our vendors, all our customers, and all of you, our investors and your families, to have supported us in this journey. We continue to look forward to the support of our entire team and all our ecosystem partners and all our investors. Once again, I would like to thank everyone. Thanks everyone for joining the call. It is always enlightening to listen to the questions and gain insight. Thank you, everyone.
Thank you, sir.
Thank you.
Thank you. On behalf of E2E Networks Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.