Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
E2E Networks Ltd (NSE: E2E) Q3 2026 Earnings Call dated Jan. 16, 2026
Corporate Participants:
Tarun Dua — Managing Director
Nitin Jain — Chief Financial Officer
Shiti Saraf — Individual Investor
Analysts:
Soumya Chhajer — Analyst
Keshav — Analyst
Bhavya Gandhi — Analyst
Varun Gandhi — Analyst
Krupa Desai — Analyst
Neil Munot — Analyst
Akhilesh Rawat — Analyst
Abhishek — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to E2E Networks Limited Q3FY26 earning conference call hosted by CoIndia Advisors LLP. As a reminder, all participant line 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 touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Ms.
Soumya Chhajer from Goindia Advisors. Thank you and over to you Ma’. Am.
Soumya Chhajer — Analyst
Thank you Danish and good morning everyone. We welcome you to E2E Networks Limited Q3 and nine month FY26 earnings con call. We have with us on call today Mr. Tarun Dua, the Managing Director, Mr. Nitin Jain the CFO and Mr. Ronald Gawa, 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.
Tarun Dua — Managing Director
Thank you Soumya and thank you Dhanish and welcome everyone to the Q3 earnings call for the financial year ending March 26th. Let me start by reintroducing E2E network for the new listeners. So 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 and many of the current large unicorns have used E2E network compute infrastructure when they scaled up themselves from startup to unicorn stage.
Our infrastructure services platform including tiers for cloud GPU including our sovereign cloud platform which can work on premise as well as like remotely like all of that supports like majority of the workloads for CPU computing and GPU computing including training, inference vector, DBS model, endpoint deployment and allows for scaling up and number of other services that are expected from public and private clouds today. Now today majority of our workload 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.
Now some of the latest developments related to E2E that we wanted to cover in the call so India AI 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 Lab acquisition of Assets was completed in this quarter. While we don’t 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. Now there has been substantial progress on the MRR target we set for ourselves for March 26th.
I think we are like 70, 75% or even 80% there and we continue to hold our target of like being able to hit somewhere close to 35 to 40 crores of MRR around March 2026 or thereabouts. Now all our partnerships are going great. Like we have continued to strengthen all of our partnerships and like we have already seen some progress in terms of actual conversions happening amongst the enterprise customers through one of our largest partnerships with L and T and we continue to expect like more conversions happening in the near and the medium term future.
Now we continue to build more Blackwell capacity as we have announced from time to time and most of the new capacity is going to operate from our Chennai facilities. Like once again like I would like to briefly touch upon our sovereign AI platform. So we remain like one of the unique businesses in India who has built like infrastructure software product sitting here in India with a team which has the experience of building these products all the way back since like 2014 onwards. Since then we started the development of our cloud platform.
And once again I would like to reiterate the levels of sovereignty that we as a nation are trying to achieve. Of course there are like a number of government initiatives which intersect with our initiatives on the push towards sovereignty. So like one is of course like the first level of sovereignty 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 center where the data is being stored, do they belong to primarily Indian companies?
Like we do that check mark by having partnered with lnt. So third part is that like 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? And fourth is of course that like 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 third to the data that is stored in India on their cloud platforms.
So obviously as a cloud based out of India and headquartered in India, like we provide a complete sovereignty over there to our customers. Then the other levels of sovereignty are which obviously there are initiatives in this country going on especially the semiconductor mission, the quantum mission, the AI mission. So the model sovereignty is being built with the help of India AI mission. The semiconductor sovereignty is being built with the semiconductor mission. The quantum sovereignty is being built with the quantum mission.
So overall we kind of like find the theme of sovereignty is something that like we have been working on without using the word for a long time and now we have started using the word and 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. So we continue to deliver on the promise of sovereign AI for all of our customers. So with that note, I would like to hand over the call to our CFO, Mr.
Nitin Jain to give some more specific inputs about the progress made in this particular quarter. Over to you Nitin.
Nitin Jain — Chief Financial Officer
Thank you. Darun 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 Q3.26 Q3 FY26 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% 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 lit.
The contracts. EBITDA for the quarter stands at 396 million, up by 60.9% year on year and 120.2% quarter on quarter. EBITDA margin came at 56.6 reflecting strong operating leverage From a profitability standpoint, we reported a PAT loss of 57 million on a quarter on quarter basis, PAT has improved by 58% indicating earnings are already trending positive as a revenue scale on the newly added capacity. The primary 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 drove our term slow 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. LNT 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. So now I would hand over to the moderator for question and answer session.
Questions and Answers:
Operator
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 queue 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 queue assembles. Our first question come from the line of Keshav from Nivasche. Please go ahead.
Keshav
Yeah, thank you so much for the opportunity and congrats on the good set of numbers. So like sir could you please help us to understand like E2E’s approach to the cloud reliability. So like in terms of any downtime or service disruption, like what redundancy measures are in the place that we have taken. So like how do we typically compensate our customers?
Tarun Dua
See we typically compensate our customers in case of any service disruption or downtime due to our reasons based on the SLA and typically what happens is we have a range of customers so we where there are customers who implement like a full single point of failure disaster recovery scenarios, test their backups regularly. So ultimately we are a self service public cloud where obviously we provide all to our customers across multiple locations to kind of like do a multi location installation with disaster every and no single point of failure and then obviously like in case like anything happens like our entire team is there to support the customers to the best of their ability.
So like we bring in everything according to like how all the public clouds like throughout the world do.
Keshav
Got it sir. And so like did we have any update on the software business? Like are there any POCs that are currently running on on the software side?
Tarun Dua
Like no immediate updates in terms of like 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 customers, enterprise customers and we keep validating the requirements and then we continue to kind of like demonstrate our capabilities and hopefully in the medium term we’ll start seeing some action on the software licensing front for the Sovereign AI cloud, that AI cloud platform that we are packaging currently and we continue to heavily invest into that.
Keshav
And so what is the expected timeline for blackfells to go live and from which quarter we can expect the revenue to kick in?
Tarun Dua
So like we are expecting in the hopefully before the end of Q4, we should be able to go live with the black pills that we have already procured and we continue to expand the Black Belt capacity.
Keshav
Thank you so much. I will join my ticket.
Operator
Thank you, sir. Our next question comes from the line of Bhavya Gandhi from Bajaj. Alternates, please go ahead.
Bhavya Gandhi
Thanks for the opportunity. Just wanted to understand how is the payment cycle with respect to India emission? How frequently have they started paying in terms of service received by the India.
Tarun Dua
Mission has actually recalibrated in the latest 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 kind of like 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.
Bhavya Gandhi
Got it. And when can we expect the next lot of Blackwell GPUs to arrive? Because I think we are buying. We have already. We
Tarun Dua
Have already received. We have already received in our Chennai location 1024 B200 issues. And we are in the process of kind of like deploying those and hopefully in the Q4 itself. Like we expect to see the deployment completed and then we can start seeing like some action interaction in terms of like orders coming in from various places.
Bhavya Gandhi
Okay. And so can we expect like order win could be possible in Q1 or FY27 onwards for these thousand Blackwell GPUs.
Tarun Dua
Keeping our fingers crossed like we are hoping as soon as possible.
Bhavya Gandhi
Okay. And have we ordered the next batch of Blackwell GPUs for further expansion?
Tarun Dua
So that’s an ongoing process. So like there are multiple types of GPUs in black belt. We are working on expanding and we will continue to expand the capacity on other SKUs as well.
Bhavya Gandhi
Got it. And 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 yoy basis, there has been depth in the EBITDA margins. So if you can just highlight what was the.
Tarun Dua
I think like quarter on quarter. Now like we have extended the EBITDA margins and I think it’s a matter of like establishing the scale at which point like 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.
Bhavya Gandhi
Got it, got it. And would you like to guide for next year MRR figure?
Tarun Dua
So like, I guess like we’ll wait for the next call to do that guidance, I guess.
Bhavya Gandhi
Got it, got it. Fair enough. All the best to the team. I’ll get back in the queue. Thank you.
Tarun Dua
Thanks.
Operator
Thank you. Our next question comes from the line of Bharat Gulati from Dalal and Viroja. Please go ahead.
Keshav
Yeah, hi sir. Thank you for the opportunity. I just have a couple of questions. Firstly, can you, can you line out a cap capex for twin? What will our capex end at for 26 and then 27 and then if you could also give us a capex guidance for 28 if possible.
Tarun Dua
Okay. So I guess like we’ll need to kind of like wait for a couple of weeks for us to kind of like delineate all these things. So we are kind of like working with our very strong partners and suppliers to kind of like build up the capacity. So we don’t want to prematurely announce things today. So let us wait for a couple of weeks and we will come up with like basically like what all we are doing.
Keshav
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
Tarun Dua
We don’t want to give the guidance today. So like hopefully like again like give us like a couple of weeks or like maybe by the, by the time we are talking about the next quarter, like we’ll, we’ll put together a guidance.
Keshav
Okay, fair enough. So on the 5,000 plus GPUs that we’ve mentioned in our PPT, so this, these GPUs that we’ll be deploying will be black 12. So do we see orders coming
Tarun Dua
Majorly? The extension is from the Blackwell Variety of GPUs.
Keshav
Yeah. So do we see orders coming on also in Q4 or will this rollover into Q1 of FY27 then?
Tarun Dua
Let’s see. We’ll continue updating everyone as we kind of like go into the deployment phase. So we’ve just kind of like received the hardware in last couple of days. So I think like give us like some time, we will update everyone.
Keshav
All right. And just one last question. On terms of the LNT order that we won in this quarter, are there any other such orders in pipeline for the coming near term?
Tarun Dua
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 occupy we will inform everyone. So that’s the goal.
Keshav
Okay. Okay sir, thank you. That’s about it.
Operator
Thank you. Our next question comes from the line of Varun Gandhi from FIT in Asset Management. Please go ahead.
Varun Gandhi
Hi Tarun, could you help me understand how much of India AI mission contribution is happening to our reported MRR, if any. And additionally with the latest B200 chips, what would be the new peak MRR that we expect to achieve?
Tarun Dua
Okay so like mostly in the last quarter like the NDI mission contribution has been muted. I think like in December it would have been the most value. But like we expect obviously Q4 to be massively different as the both the customers one through India emission continue to scale up in January. So that MRR percentage number should be like much higher. So yeah, 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 maybe I just need the MRR peak MRR
Varun Gandhi
Capacity. Do you that you would expect to achieve no guidance or as such just a pk?
Tarun Dua
There is no, there is no upper limit for us. Like we don’t want to limit ourselves by saying that like this is what we are going to only do. So like we don’t have an upper limit in our mind.
Varun Gandhi
All right. Secondly, on the India AI mission contracts these are primarily focused on training workloads right now which we know are typically. Majority of India
Tarun Dua
AI mission workloads are focused on building the LLM models, sovereign 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 India vision as of today.
Varun Gandhi
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. Very,
Tarun Dua
Very, very likely. We are already working with the LLM builders to kind of like run their inference workloads with us.
Varun Gandhi
Got you. And some of them are already running their inference
Tarun Dua
Workloads with us and many of the new ones will hopefully are already working with our customers through our partners for the inference workloads and we continue to see the acceleration of this trend.
Varun Gandhi
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?
Tarun Dua
Absolutely, absolutely. Also
Varun Gandhi
Tarun, in December we faced a major outage in the Mumbai servers. So just wanted to seek some clarification on your end and if there’s any major client loss due to the outage and what steps have we taken to prevent such prolonged outages in the future.
Tarun Dua
Sure, sure, sure. So the couple of points over this. So basically like our plan was always to kind of like migrate the customers from Mumbai, which is a much smaller location than our Delhi, NCR and Chennai locations. So 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 like we have made quite a few changes in terms of like increasing the investments into site reliability engineering and working with like some of the backend vendors to kind of like strengthen our overall infrastructure from a impact point of view.
I think like over a period of time it would become clear like what is the impact we are seeing. But as I said earlier that like this was like a substantially smaller location overall for our infrastructure. So we don’t see intent, we don’t expect to see a material revenue impact over the medium term and the long term. But that being said like we are very, very conscious of working very hard towards making sure that like these kind of incidents are completely avoided and we are able to do better in terms of like 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.
Varun Gandhi
Understood. And if I could squeeze one last question. Since we spoke in the previous quarter, the accelerator industry has witnessed a significant update. You know with The Google Google CPUs becoming the centerpiece of conversation for better cost efficiency and Nvidia’s hardware mode is now being contested and the broad expectation is that ASICS in general the adoption would pick up materially. Now my question to you as the management of E2E is would you be also open to adopting ASICs within your infrastructure if the industry trends towards that direction or would E2E remain an Nvidia exclusive partner?
And I ask this because both choices have clear implications on business dynamics including CapEx, ROIC and I also understand that it’s very premature to state any conclusive comments, but all I seek is your thoughts on the topic.
Tarun Dua
No fair. So 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 like 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 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 that is based on the inputs that we continue to get from our customers.
Varun Gandhi
Understood. But. Okay, got you.
Operator
Thank you. Customer
Tarun Dua
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 what we are seeing today as of today like is what we have spoken about.
Varun Gandhi
Thank you very much. I’ll get back in the queue.
Operator
Thank you. Ladies and gentlemen, in order to ensure that the management will be able to address question from all the participants and the conference, kindly limit the question to two questions per participant. Should you have a follow up question, please rejoin the queue. Next question comes from the line of Krupa Desai from Electrum pms. Please go ahead.
Krupa Desai
Hello. Am I audible? Yeah. My first question was how much capex have we done for the procurement of 1024 Blackwell series and how, how have we funded that?
Tarun Dua
Okay, I’ll let Nitin answer this question.
Nitin Jain
So for the Blackwell series roughly the CAPEX would be in a range of 6,600-650cr part of which is funded through a term loan which would we have taken from the axis and HDFC bank.
Krupa Desai
Okay, and sir, 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?
Neil Munot
Yes, more or less
Krupa Desai
Answer on that. We had guided that at 35 to 40 crores MRR 65 to 70 would be the beta margins. So do we expect in next quarter we can hit that?
Keshav
We are definitely hoping for that.
Krupa Desai
Okay, and one more. What was the utilization rate this quarter?
Nitin Jain
I think actually December and we are touching the utilization roughly around 60 to 65%.
Krupa Desai
Okay. 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.
Tarun Dua
Broadly what we are seeing in the international market today is like anywhere between like $3 to $4 approximately for slightly longer term contract. So like we are also hoping to kind of like achieve those kind of numbers.
Krupa Desai
Okay and sir, any further guys?
Operator
But the question to do. Yeah, you can rejoin the queue. Thank You. Yeah. A next question come from the line of Neil Munoth from Pico Capital. Please go ahead.
Neil Munot
Hi, sir. Am I audible?
Keshav
Yes, yes. Please go ahead.
Neil Munot
Thank you for your question. So other than the enterprise line that you got from LNT, any sense of our. Also because
Operator
I’m so sorry, Mr. Neil, but your voice is breaking. We can’t hear you properly.
Neil Munot
Is it better now?
Operator
You may continue your question. We’ll see.
Neil Munot
Yeah. So sir, I was asking, other than our enterprise client that we got through lnt, can you give us a sense of our other enterprise client conversions? Like not exact numbers, but since we are six months from startups to enterprises. A broad sense, we
Tarun Dua
Continue to work with a lot of enterprises and AI native companies and we continue to see quite a few conversions. Now when the conversions are substantial, obviously we’ll continue to inform.
Neil Munot
Okay. And sir, the new capacity of Blackwells that you’ve acquired, are they solely for the India AI mission or we are seeing fractions for PoC.
Tarun Dua
I think like a majority of those would go to India emission for sure. So. But like we continue to build capacity even beyond India emission as well.
Neil Munot
Okay. And so the revenue potential from these thousand Blackwell GPUs that you send, what is like the peak sense that we could generate from this? Any number?
Tarun Dua
Yeah. From a ARR perspective we are looking at like somewhere close to maybe about 250 odd crores per year or so with 1024 black belts.
Neil Munot
Okay. Sorry to interrupt
Operator
You, sir. Please limit your question to two question only. Thank you.
Neil Munot
Okay,
Operator
Sure. Ladies and gentlemen, just a gentle reminder, please limit your question to two question per participant. Our next question comes from the line of hitish and individual investor. Please go ahead.
Akhilesh Rawat
Hello.
Tarun Dua
Yeah, please go ahead.
Akhilesh Rawat
Yeah. So there are two questions how you see the demand going ahead, particularly in India Mission. And the second question is as voice agents are picking up how you see the infants business coming to E2E.
Tarun Dua
So we are very, very positive about both the things. So one is of course the global demand is like kind of like going ahead at a very great pace. And so is the Indian demand. Like so in the recent past, like we’ve seen like increased demand on capacity. And of course the demand at India Mission is also definitely expected to go up.
Akhilesh Rawat
Okay. And. Other than India Enterprise are demanding more GPUs or preferring our platform for inference.
Tarun Dua
Yes, definitely. So like in a way that like we are working with like a lot of partners directly and through our big partners lnt. So we are seeing that like we should be able to kind of like Set up like a marketplace of inference providers on top of E2E networks platform.
Akhilesh Rawat
Okay, thank you. And how you see the voice agents are picking up because they require a lot number of GPUs.
Tarun Dua
I think like there is a lot of interest in the voice agent. Like so I think like that is the first major use case in India that is like definitely going online where people are experimenting with it and like they are putting pieces of that in production. I think that only going to go up from here.
Akhilesh Rawat
Okay, so our customer preferring us means are any POCs running at our end or can you give some highlight on this?
Tarun Dua
So we don’t want to talk about specific customers. Like obviously we are working with our partners over here to kind of like work with like quite a few customers.
Abhishek
Okay sir, thank you.
Operator
Thank you. Our next question comes from the line of Abhishek from Incred Capital. Please go ahead.
Tarun Dua
Yeah. Hi Abhishek.
Abhishek
Hi sir. Thank you for the opportunity and congrats on a great quarter. Sir, two questions. The first one is, you know this. If I look at the MRR for December and given the fact that the India aimation started in December, so it seems that we were able to sell our capacity for shorter projects in the quarter. So can you just elaborate if 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 was impacted. That is the first question.
And the second one sir is on the LNT partnership which you have highlighted in the presentation. So it says the one year GPU service starting January 6th. So should we see the incremental ramp up in the March quarter for the full quarter from this order, sir?
Tarun Dua
Okay, okay, okay. So one is of course like in the quarter ending December like majority of revenue was non India AI revenue. Definitely that indicates the kind of like our increased ability to capture more short term demand than in the past. So that is two and third is that like next quarter? Obviously we are expecting majority of India AI workloads to ramp up. Hopefully by end of January more or less majority of those workloads are expected to ramp up. And third is that like we continue to see the traction with more enterprise customers.
So hopefully that should also be additive. So we are very, very hopeful about the next couple of quarters.
Abhishek
This is helpful sir. And just a broader on you know, the global demand trends. So with you know, China, you know now US allowing exports of GPUs to China, will this create you know some, some form of shortage or demand acceleration for infrastructure providers?
Tarun Dua
Yes, both like obviously like if a large enough country comes in with additional demand then like both those trends are expected in terms of like some level of shortage. But then as we have seen in the past that like 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 that, amongst other reasons.
So other reasons being like the, we are now in a far more mature part of the AI inference and training cycle 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.
Abhishek
Very helpful. And just one last. I’m so sorry
Operator
To interrupt you sir, but please limit your question to 2. You can rejoin the queue. Okay, I’ll
Abhishek
Rejoin in the queue. Thank you.
Operator
Thank you. Next question come from the line of Nikhil Kothari from Antara Capital. Please go ahead.
Neil Munot
Hello. Yeah, hi. Hi. Hello sir. Thank you so much for the opportunity. So my questions are regarding some bookkeeping questions. So 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?
Tarun Dua
No, no, definitely. The assets continue to run and operate and there is no like end of life until the asset continues to operate. The asset continues to sell and as it continues to generate income.
Neil Munot
Understood. So what are our expectations? Like how long should we expect for the asset? We have seen
Tarun Dua
Domestic and international providers like looking at periods of around 10, 11 years also for some of these assets. But like we are very, very hopeful that like seven to eight years is like a very reasonable expectation for these assets to continue to generate business for us.
Neil Munot
Understood. So, so what ROE are we expecting down the line like giving this rate of useful life and this rate of depreciation?
Tarun Dua
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, 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 that will continue to add to the returns for us in the longer run.
Neil Munot
Okay, so should we expect Roe is greater than or not of 20%.
Tarun Dua
Broadly? That’s, that’s the way we look at any technology business. So yes, absolutely.
Neil Munot
Understood. And when do we expect to achieve that? Three, four years down the line.
Tarun Dua
I guess like look back is better than like me saying when do we achieve it? So let’s, let’s get to it. And then we look back and say, yeah, it has been done or not.
Neil Munot
Understood? Understood. Okay, sir, thank you so much. That’s it. From my side.
Tarun Dua
Yeah. Thanks Nikita. Yeah,
Operator
Thank you. Our next question comes from the line of Rajkumar Vidyanathan from RK Investment Management Ltd. Please go ahead.
Neil Munot
Yeah. Good afternoon sir. Thanks for the opportunity. Am I audible?
Keshav
Yes sir. Please
Tarun Dua
Go ahead.
Neil Munot
Yeah, sir, just couple of questions. So first question is what is the utilized getting for FY26, 27?
Tarun Dua
Sorry, I didn’t get the question. Like what is the,
Neil Munot
What is the utilization? We are. You said that the utilization will be around 70%, you know, by end of Q4 26. So for 26, 27, what is the end utilization number we are looking at.
Tarun Dua
That goes into a bit of like speculative territory. But then given the fact that like we are very, very focused on increasing the utilization, so we continue to target like somewhere between 80 to 90 of the utilization to be done at some point of time in the, in the, in the course of the next financial year.
Neil Munot
Okay. 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. Prudent in terms of where you have. We continue
Tarun Dua
To have the same strategy. Like we are prudent as well as aggressive. So prudent to ensure that like the. There is balance and aggressive to ensure that like we are capturing as much of the demand as we can.
Neil Munot
Yeah. So the question is just to label on the same question. I mean, you know, I heard that there are some, 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 what will you become more aggressive?
Tarun Dua
Some impact would be there in terms of price points on GPUs because of memory. But then like these to balance out over a period of time. So like see we have seen these hardware cycles again and again 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 thundering herd goes away and then things settle down to normal. So basically I don’t see a long term impact in the medium term, of course Things tend to balance out.
Like the supply and demand balances out and the irrationality in prices goes away. So it’s always a cycle. You have to kind of like just run through the entire cycle where 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.
Neil Munot
Okay, got it sir. So this since we are following. Sorry to interrupt
Operator
You sir, but please.
Neil Munot
This is the second question only. So the question is. Yeah, please go ahead. Following the SAS model, so potentially can we expect to sell more than 100 of our capacity? I mean.
Tarun Dua
It’S a, it’s a elastic kind of like both demand and supply. So it is always possible to build some level of supply in the short term 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.
Neil Munot
Oh, okay, thank you. So it’s
Tarun Dua
Like these are all approximate numbers. Like when you say a particular per hour price or a particular 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 MRR or ARR capacity. So there is enough elasticity over there to go both up as well as down.
Neil Munot
Yeah, so the reason is you will have a better operating leverage. And also there not, I mean you’ll be selling more on a concurrent license licensing models. So that is the reason I asked, you know, whether we’ll be able to, you know, have a higher capacity.
Tarun Dua
It’s not as much as SaaS obviously, but like definitely there is some level of elasticity which is available. So it’s definitely not comparable to SaaS that you can go like a huge multiplier up or down. But like definitely on infrastructure there is some level of luxury.
Neil Munot
Okay, got it sir. Thank you so much.
Operator
Ladies and gentlemen, in order to ensure that the management will be able to address question 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 participant, please limit the question to one question per participant. Our next question comes from the line of. Nishan Joshi from Equations Advisors Private Limited.
Please go ahead.
Neil Munot
So 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. And in previous calls also he has. Said that
Tarun Dua
These are all public announcements. I think like the current date for submitting the bits is I believe like 18th of January. So this is all public information. And 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 level of participation. So that is definitely expected to kind of online. So in a way I think it’s a projection of demand that we are seeing from India AI mission that like there is current demand of another 15,000 GPUs.
And that’s not the end of it is what we understand.
Neil Munot
Sir. I mean is this the part of original 10,000 crores and plus 8,000 crores of the wedding which took place or it is. Besides that, yeah, I think
Tarun Dua
We have seen enough news that like there is. I don’t think 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 like going out on a limb over here, like I think like Indian government intends to continue to support the AI mission in a big way.
Neil Munot
So second query was what is our present capital work in progress and do we plan to raise any fresh equity in coming quarter?
Tarun Dua
We always keep the market informed about our plan. So we’ll continue to provide like the information around any kind of fundraise that we do on the equity side.
Neil Munot
Sorry to interrupt
Operator
You sir, but please rejoin the queue for more questions. Thank you. Our next question come from the line of Akhilesh Rawat from Ridanta Vision Private Limited. Please go ahead.
Bhavya Gandhi
Thank you for the opportunity. So my question is at what utilization level do these new Blackwell GPU assets are start to become EBITDA positive on incremental basis.
Tarun Dua
I guess like Nitin would be able to answer this question better than me.
Nitin Jain
From an overall perspective the additional EBITDA 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 a level.
Bhavya Gandhi
Okay, okay, okay. And if I can, I can. Can I ask one more Question like.
Tarun Dua
Yeah, sure, please go ahead.
Bhavya Gandhi
So like is your current depreciation guidance assuming the immediate utilization or does it. Already factor in the commissioning? Like if, is there any like to commission the GPUs?
Tarun Dua
I think this is more of a look back question than a question that we can like very closely predict. So I guess like, let’s look back at this question by the end of the next quarter.
Akhilesh Rawat
Okay, thank you. Thank you. That’s it. From my side, all the very best for the upcoming quarter. Thank you.
Tarun Dua
Thank you.
Operator
Thank you sir. Our next question comes from the line of Debashish Mazumdar from Swine Investment. Please go ahead.
Tarun Dua
Yeah, hi. Hi.
Neil Munot
Yeah, hi. Thank you so much for taking a question. So this 35 crore monthly run rate revenue that you were thinking of achieving in March 27th. I’m sorry, March 26th, what is the current capacity utilization that will be reaching on the 1100 crores of gross block that you have mentioned at the end of H2?
Tarun Dua
Yes. Or the
Neil Munot
4,000 installed capacity? Yeah,
Tarun Dua
Yeah, yeah. So by end of December, the current installed capacity, I think like we reached about like 60, 65% of utilization that was mentioned by Nitin. So that’s the current data and hopefully in the next quarter that utilization percentage should increase.
Neil Munot
Okay, so is it fair to assume that on the current 4000 GPU unit that you have currently installed, the MRR could be around 50, 55 crores at the best case scenario.
Tarun Dua
So we like okay, like so, so these are all elastics. So in that sense, like theoretically if it is possible, probably the answer is yes. But like practically I think like we are talking about like for the March time frame, we are like looking at like 30 to 40 over here
Neil Munot
And. Because the question why I’m coming to is because if you are reporting 35, 40 crores of monthly run rate, then you will be reporting around 400 crores of top line and 250 crores of EBITDA. Then your incremental depreciation doesn’t justify this kind of investment. So I’m just trying to understand what I’m missing.
Tarun Dua
Like okay, like I think like you might want to kind of like look at the numbers more closely and if in case like you want to take it offline with our cfo, probably you can do that. Like, so my understanding is that like basically like the overall from a run rate perspective, like in the future, the map definitely works out for us.
Neil Munot
Okay, so, okay, and, and the incremental investments that you have done, the hopper GPUs of the 600 crores investment, what is the potential revenue or potential run rate that you are looking at there?
Tarun Dua
See, we are basing the projection of the ARR capability from those 1024 GPUs based on like a bottom price. So I think that bottom number would be somewhere anywhere between like say 245 to 250 odd crores on a ARR basis.
Neil Munot
Okay, okay, understood. So that means your, with this thousand, your incremental revenue would be almost similar. Sorry sir, but
Operator
Please limit a question to one question. So we have no problem. No problem.
Neil Munot
I will take it separately.
Operator
Thank you. Thank you
Neil Munot
So much.
Operator
Thank you. Our next question comes from the line of Shiti Saraf and individual investor. Please go ahead.
Shiti Saraf
Hi. Congratulations on the good set of results. I wanted to ask on the Jarvis Lab acquisition, you mentioned that 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.
Tarun Dua
So what we have seen with Jarvis was that like majority of their customers were operating from outside India. And that is what made us very, very interested in kind of like acquiring their assets, including their software and people and the hardware. So essentially like they’ve built like a highly integrated platform and product that can kind of like onboard people, a specific set of customers who operate with lower ARPU but like at a higher margin and 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 hand holding compared to Jarvis. So with that respect like we expect Jarvis to get scaled up in the medium term outside India and add to the overall capabilities of the E2E platform.
Shiti Saraf
Understood, that’s helpful. Secondly, do you see 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’s say. Because obviously the enterprise opportunity is large and it’s large enough any sort of R and D or doing on what next? Apart from targeting enterprise segment,
Tarun Dua
We continue to heavily invest in our software and AI capabilities. So that is one major focus area for us. And second focus area is to create standards based infrastructure including the software layers on top of that that people are able to utilize very quickly and are able to get like a great return return on deployed resources very very quickly. So 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 do what they came to do, like faster and quicker compared to at other places.
Shiti Saraf
Thank you so much. All the best.
Tarun Dua
Thank you.
Operator
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.
Tarun Dua
Sure. So 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 of our partners, all of our vendors, all our customers, and all of you, our investors and your families to have supported us in this journey. And we continue to look forward to the support of our entire team and all our ecosystem partners and all of our investors. So once again, I would like to thank everyone. So thanks everyone for joining the Call.
And it’s always enlightening to kind of like listen to the questions and gain insight. So thank you, everyone.
Operator
Thank you, sir.
Tarun Dua
Thank you.
Operator
Thank you on behalf of E2E Networks Limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines.