Thank you, Myron. Good evening, everyone.

On behalf of E2E Networks Limited, I would like to welcome you all to the earnings conference call for the second quarter of FY 2027. Today on the call, we have with us from the management Mr.

Tarun Dua, Managing Director of E2E Networks, and Mr. Nitin Jain, Chief Financial Officer of E2E Networks.

We will begin the call with brief opening remarks from the management, followed by a Q&A session. All participant lines will be in listen-only mode during the management's remarks, and the floor will be opened for questions thereafter.

Please note that certain statements made during this call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or projections to differ materially from those statements.

E2E Networks will hold no responsibility for any actions taken based on such statements and undertakes no obligation to publicly update these forward-looking statements. I now hand over the call to Mr.

Tarun Dua for his opening remarks. Over to you, Tarun.

Hi everyone. Thanks for joining us today in our second quarter earnings call for FY27.

This has been another strong quarter for E2E Networks where we have continued executing similar to the previous quarter. This is still day zero of AI for us as far as we can see.

I would like to kind of give a brief update in the previous quarter. We signed a nearly 1,000 crore deal with a sovereign AI company for the Blackwell clusters, which lasts up to June 2029.

This is something that improves the long-term revenue visibilities and validates E2E's ability to transition the deployed capacity from a pay-as-you-go model to a longer-term commitment. Apart from this, basically this quarter we have really focused on increasing the talent density within E2E in all areas of execution.

We have a new Chief Revenue Officer. We have also added a team to the founder's office.

We also have a field CTO to kind of help our customers understand our solutions better. All of this brings a lot of net new experience from the industry in various facets of the industry.

Essentially that strengthens the management and leadership team where it primes us for the next phase of growth for ourselves. Now, apart from the inside talent within E2E, we have also strengthened our strategic advisory team.

Where we would like to welcome Mr. Anando Roy as a strategic advisor.

Roy has been a part of the tech ecosystem of India for a very, very long time. Essentially he brings a lot of deep-rooted knowledge of how AI is being applied into the new ecosystem that is getting built.

His experience and perspective would be really valuable in helping us identify very many opportunities. This would help shape our long-term growth strategy as well.

Now we continue to invest very rapidly into our sovereign AI platform both on the side of TIR and on the side of Jarvis. What I believe is that the platform is the key to our future growth.

Where essentially that allows us to operate a little stacked layer where we kind of manage all parts of the sovereign AI multiple layers for our customers. That allows them to use our GPU platform with confidence for not just training, but also inference and the upcoming agentic workloads.

This of course requires some part of our GPUs to be used by our own teams rather than being completely sold out to end customers. This is something that allows us to kind of go forward in the future with boldness.

Now finally about the future growth, we have always maintained that we will continue to be both aggressive as well as prudential in terms of our capex deployments. Now we do not give a speculative capex guidance.

What we prefer to kind of inform everyone of is when we have sufficiently fructified and solidified our deployment plans. That's when we talk about yeah, this is the potential capex deployment upgrade that we are working on.

Once it fructifies, that's when we talk about it. Now I would like to hand over the conversation to our CFO, Mr.

Nitin. He can talk about some of the recent financial-related updates for the last quarter.

Over to you, Nitin.

Thank you, Tarun. Good evening everyone and thank you for joining us today.

I would walk you through our financial performance for the second quarter and first half of FY 2027. Q2 FY 2027 has been another strong quarter for E2E Networks.

Revenue for the quarter stands at 2,238 million, which is up by 411% year-on-year and 43% quarter-on-quarter. EBITDA stood at 1,715 million, up 45% quarter-on-quarter with margin expanding to 76.6%.

EBITDA margin expanded by 141 basis points compared to Q1 FY27. Profit before tax clocked at 971 million compared to 586 million in Q1, an increase of 66%.

PAT stood at 727 million compared to 439 million in Q1, with PAT margin improving to 32.5% from 28%. Diluted EPS stands at 3.48 compared to 2.1 in Q1.

The performance is driven by contribution from the Blackwell GPU, better utilization, and higher average realization from the GPU fleet. H1 FY27 revenue is 3,805 million, which is up by 376% year-on-year.

EBITDA stands as 2,894 million at 76%, which is 2.3 times for the full year FY26 EBITDA. PBT stands at 1,558 million compared to a loss of 222 million in H1 FY26.

PAT stands at 1,166 million compared to a loss of 163 million in H1 FY26. Now I would hand it over back to the moderator for the question-answer session.

Hi.

Congratulations on a great quarter. I have few questions.

When are we expected to basically go live with our next B200s that were planned originally, and when we can expect the revenue to be started from that?

Yes, the next lot of B200 which we have already announced is expected to go live this quarter. Hopefully soon.

When it goes live, obviously we'll keep everyone informed.

Hi Bharat.

Hi, Tarun, sir. Thank you for the opportunity.

Just a question on the 1,000 crore contract. In the current 75 crore MRR, how much would be the contribution of that 1,000 crore contract?

You've mentioned that the B200s have been multi-year contracted for the order, is this the existing B200s or is it going to be both the batches of B200s?

This is the existing B200 which got converted from pay-as-you-go to a multi-year contract. Now, exact contribution would vary based on the usage, but obviously it's easy to calculate close enough by looking at the 1,000 crore number and the time period.

Is the MRR completely baked in from the 1,000 crore contract right now, or is there some incremental MRR still to come? See,

I don't know how to answer this question. Basically you're asking question about a future that I cannot predict.

Got that. Okay.

Just on the gross margins, sir, we've been calling out that 85% gross margins is where we'll be, but we've significantly beaten that this quarter. How sustainable is this 88% margin?

Just on the operating costs also, I understand you've made some investment in people, but where do we see absolute operating costs moving going forward, it's 18 crores for this quarter. If you can just throw some light on that.

I am

not sure about the 85% number. Basically see overall we are looking at this as a 70% to 70% plus kind of an EBITDA margin business.

Essentially that's what we feel is the medium-term and the long-term.

Got it, sir. Just if I can squeeze in one last question.

In terms of guidance, any exit guidance in terms of MRR you want to give for this year or

We don't give any guidance.

Got it, sir.

We always say that look back at what we have done rather than giving a future guidance.

Got it, sir. Thank you.

That's it from my side.

Am I audible now? Hi Keshav.

When should we expect the increase in GPU pricing to show up in the revenue? From the past six months, we have seen globally that the GPUs prices have been increased, when should we expect that to be reflected in MRR?

When the contracts gets renewed?

See, as a company, obviously we have multiple goals which have to draw a balance between basically quarter-on-quarter performance and also our long-term. Now from the point of view of long-term, we want to obviously have a very good relationship with all our customers.

Which also means that we honor our commitments to our customers whether contracted or whether verbal. In terms of what they expect from us.

Second part is that we are heavily investing into our platform. Now on our platform of course the increase in talent density both on the engineering and non-engineering side helps.

Apart from that, obviously a big part of buildout of our platform also requires that we be able to use our own GPUs for our own product development and not just be a plain seller of all the capacity that we have. Obviously, we want to heavily invest into R&D for helping in buildout of our platform.

Any kind of R&D effort today obviously involves necessarily using GPUs. That's also an investment into the future.

Now that being said, again we don't want to ever give a future guidance whether it is far into the future or whether it is for the next quarter. As we kind of go forward, obviously for uncontracted capacity or short-term contracted capacity, we obviously expect the earnings to grow from the same assets that we have.

Got it. One just last question if I can squeeze in, are you seeing the inference demand to be growing on platform and maybe it started contributing to E2E's revenue?

Sorry, your question you are talking about

what's

the contribution of inference?

Inference. Yeah.

See, we look at the whole set of businesses as a overall whole rather than looking functionally at oh revenue is coming from inference or training or storage or CPU running agents. We would continue to look at the overall picture as opposed to kind of breaking down things into numbers.

Because quarter-on-quarter all the numbers are subject to potentially massive changes. Any percentage we quote we want to make sure that that is something which is actually trackable and which is not very ephemeral point in time that doesn't really help in terms of building an improved analysis around E2E.

Got it. Thank you.

I will come back in the queue.

Thanks, Keshav.

Harsh Shah ji. Please go ahead.

Hi, Tarun ji. Sir, my first question is on the second tranche of B200.

Sir, I was just going through the balance sheet and couldn't spot any advances that we might have paid. Is there any delay out there?

Want to understand, what would be the rate at which these would be deployed? I believe the deployment is already committed.

Would it be at a similar rate at which we have deployed the 1,000 crore first tranche B100 or would it be higher or lower if you can give some indication here?

See, certainly our goal would be to make somewhat higher amount of money. Like I said that see the long-term strategy of the company is not dependent on, oh, can we make a few cents more or a few percentage points more from same set of GPUs.

The long-term strategy is to kind of make money by building more technology. Then the resulting growth is a result of our advances in technology and customer adoption of our technology.

We start looking at it from the other side where we say that the asset growth is a result of kind of growth of success of our technology rather than the other way around. I hope I am able to point you in the right direction over here.

Yeah. To an extent.

Essentially what I am saying is that let's not simply look at in terms of looking at GPUs as a car-like asset, oh can you make somewhat more rental from the GPUs. Essentially GPUs are a means to an end.

Essentially the idea over here is to get one, of course, the domestic market to adopt our technology, and second, of course, to get our technology adopted at a global scale. The idea is not to kind of run after short-term high hourly numbers on the GPUs.

The numbers would be a result of when our technology gets more adoption and not the other way around.

Sure. Sir, in Q2, how much revenue came from IndiaAI Mission and are we expecting any renewals from those contracts to be happening at better spot rates going forward?

See, we continue to engage with IndiaAI Mission where essentially the goal is to kind of build relationship with various kinds of customers who will potentially continue to work with us beyond the remit of IndiaAI Mission as well. Regarding numbers in the previous quarter related to IndiaAI Mission, I guess Nitin can give a better approximate answer about what part of revenue we earned from IndiaAI Mission-related services.

For the quarter, the revenue from IndiaAI customer is roughly around 13% to 15%.

Okay. Last thing, and for FY28 and FY29, just just a follow-up, just a follow-up to previous one.

For FY28 and FY29, how does the allotment visibility look for maybe next lot of B300s or Vera Rubin?

See, hard to predict the future, right? Basically we will take the future as it comes.

Sure. Can we take 2,000 GPUs per annum as a base case for next 2 years?

See, we never make any forward-looking predictions, essentially let's wait for us to kind of fructify our plans and then inform everyone at the same time that what's the plan going forward with regard to the increased capex and deployment, etc.

Sure, sir. Thank you.

Hi, Tarun ji. Am I audible?

Hi.

Yes, you are audible.

Yeah. First question is regarding what sort of debt levels you are comfortable with and anything on the 1,500 crore enabling resolution for the fund raise that you've taken?

Second question is regarding what is the international revenue mix and what is the contracted revenue as a percentage of overall revenue? Those were the two questions.

See, I think from a capital deployment perspective, obviously we will keep everyone informed in case there is any future equity raise. Regarding debt, basically I think it's also a function of our own ability to repay the debt more than anything else.

There is no mental limit of what can be the debt. Of course, there are always covenants from lenders with regard to what you can do at a given point of time or not.

Now there was another question. Can you repeat the third question that you had?

I think that was related to the second

thing that you asked. Sure.

Yeah. Perfect.

What levels you'll be comfortable as a business, something Like I said,

we are very comfortable with debt as long as we have the ability to repay. We don't have a upper limit defined for ourselves that okay we can't go beyond this on debt or anything like that.

Right.

As long as our current cash flow supports, we are comfortable with that.

Right. I was asking you about the international revenue mix and how much is the contracted revenue in the overall revenue pie?

Yeah. Nitin, answer the numbers-related questions.

Tarun, one more question regarding the asset-light model if at all you are evaluating, and if you can highlight what is your view on that before we go to Nitin, yeah.

See, basically there is massive amount of AI buildout. Now in an AI buildout play, essentially we are not averse to any kind of capital deployment that can essentially help us advance our technology adoption forward.

Sure. Okay.

Nitin can answer the balance questions, yeah.

In terms of the international revenue, which range from roughly around 20% to 25% of the revenue for the quarter is coming from the international customer.

Contracted revenue as a percentage of the overall revenue?

I think mix of long-term versus short-term, currently our size is small to sharing a point-in-time information. These numbers would change dramatically.

Nitin, that also applies to the international numbers, all percentage numbers you are looking at in the previous quarter or quarter-on-quarter numbers, essentially are not really trackable metrics. They are subject to wide swings is what I would assume.

Got it. Just as a 100, if 100 is the total revenue, what could be the contracted revenue that you'll be targeting, just to get a flavor of annuity business?

There is no specific target in our mind. I think it's more of a tactical question which needs to be answered in multiple steps which kind of keep changing.

There are just so many considerations over there so where you can't really say that yeah, whether you will target a particular percentage as a contracted revenue. That's not a fixed number in our mind today.

Got it. Thank you so much and wish you all the best for future.

Thank you.

Hello. Hi, team.

Congratulations on a good execution. Two questions.

I guess first question was answered partially. That was on the pricing.

The other half of the first question was on the utilization, what sort of utilization levels we are in and what sort of utilizations we plan to target. That's first.

Second one was on the TIR platform that we have. I wanted to understand how is the customer engagement we are having in the TIR platform, and what sort of competitive intensity are we seeing in this particular space?

Are there global cloud operators having similar offerings and we compete with them or we have a good product offering which is easily adaptable to the customer?

That's a lot of questions, I only remember the last one. From a platform perspective, I would like to think that basically whatever we are building over here in India is world-class and can be globally adopted.

That's what I would like to think. Now the proof of the pudding lies in eating.

Basically the success of the platform shows up over a period of time, over the medium term. Very very hard to kind of say that, oh, this is better than X, Y, or Z today.

It's a moving target, right? As the field of AI advances very rapidly, we need to build up our own pace of keeping up with the latest technology and keep implementing whatever is the latest thinking in terms of how our customers are going to use AI.

I think that is what leads to the eventual platform as a product success. I think the jury for that should be held till I think the medium term.

That's what I would like to think. Again, from a utilization standpoint, I think it's a point-in-time number.

Shouldn't really matter. What really matters is that at an aggregate level, what's the realization on the entire set of assets, rather than slicing and dicing and looking at, okay, this asset produced X, this asset produced Y, and so on.

The sources of revenue within an overall platform can widely vary between one customer to another customer. Some customer will pay for X, some customer will value Y more, they would pay for Y.

Essentially, what I believe is that utilization, while it is a good metric to track assets which can produce very consistent set of average revenue, in case of a technology product, I think the variation is too high to say that utilization is the right metric. Somewhere we feel that the better metric over there is the overall realization across the entire fleet rather than looking at the utilization metrics in terms of either the GPU hours utilized across the fleet or what number of GPUs were idle, and so on.

Sure, we are using our GPUs for a lot of what is not immediate revenue requirement, but that is required for building up our product. I hope I am able to get this across.

Yes, yes, yes.

Hello.

Thank you for the opportunity. Sir, I have two questions.

Sir, how do you see E2E evolving in next 18 months in terms of product offerings and service offerings? Second question is are you seeing any demand from global system integrators who are looking after our products for inference, because their clients must be demanding for enterprise AI transformation, they must be demanding the GPU services, right?

Okay. One way to answer that question is that, look, we are very small.

We do see all sorts of customers, but today, it's not really possible to slice and dice the set of customers we have, because again, this is very, very point-in-time over a very small base of the GPUs that we have. Are we talking to GSIs?

I am pretty sure that that's a part of our overall sales coverage where there would be members of our team obviously speaking to GSIs. What can we say about E2E over 18 months?

I think that's a long period of time. Basically I think the strategy is flexible in terms of that keep building technology that people want to adopt, and keep pushing the envelope in terms of efficiency of our technologies which lowers the overall cost of ownership for our end customers, and kind of keep building things that people value.

That's the overall strategy over there. Keep having a great team that can kind of implement this strategy.

It's as simple as that.

May I have just a follow-up. Sir, recently you have launched couple of inference-based products like Blaze, Endpoint, in JarvisLabs also.

Are you seeing any traction?

I wouldn't say launched as much as basically soft-released. Obviously, the official launch might be a few weeks or so away.

Basically that's the general direction we are taking, but we are kind of building a lot of cool things that our customers can adopt, and helps us learn about what they want to do with the tech that we are building. As we start seeing substantial adoption that can show up in the volume, we'll start talking more about it.

Sir. Thank you.

Hi.

Hi Neil. ]: Hello.

Please go ahead. ]:

Am I audible?

Yes, yes. You're audible.

Please go ahead. ]:

Yes. Hi, sir.

My first question is with respect to the current Indian competitive landscape. We've got one player that has scaled up to 90,000 GPUs, and we've got another very recent entrant that has got I think 8,000 odd B300s.

This is related to our statements with respect to our platform. How do we differentiate from these players when they have already scaled up to these levels?

When do we see a similar kind of scaling up, since we keep pressing about our platform in that sense?

Sure, Neil. Let's take a step back.

I think the overall total addressable market for AI infrastructure alone at a global level, we are literally talking about over the medium term, maybe anywhere close to a trillion dollars of AI infrastructure addressable market. Now AI is today a truly global business.

The GPUs are chasing wherever there is power and wherever there is availability of ready to release what you call land power shell. Essentially what we are looking at today is a global marketplace.

In the global marketplace, I think millions of GPUs are getting deployed every year. When we talk about the entire set of GPUs being deployed in India, it doesn't change the fundamental equations for us in terms of what we are doing.

There is no what you call direct competition between basically any 2, 3, 4, 5 players which could be there in one particular market segment. Essentially, we are looking at a very large TAM of global market where everyone who is a player in this market needs to find their own niche.

They need to find their own set of customers where they learn from those customers, and then double down on their learning to build technology that can be used by customers similar to the customers they have or maybe even expand into newer customer bases or industries. Essentially in a long-term AI supercycle buildout, all of us will need to figure out what we want to do.

Now we have a reasonably mapped out, agile strategy around building technology and getting the adoption, and learning from our customers, and working with them to kind of give them what they need. We hope to be able to continue to do that.

There is only limited set of people solving problems in AI even globally. Of course, more and more people are coming in and solving more and more problems, but it still leaves a significant set of problems to be solved by us, which can be adopted by our customers.

I suppose that will give us the ability to continue to grow year after year, or at least for the medium to long-term. That's what we think about basically the competitive intensity in this space.

We are in the midst of one of the largest buildouts, there are more than 150 or 200 or 250 odd players in the world. I think there is enough for everyone.

]:

Sir, I'll just rephrase my question here. In a similar context, when we are serving Indian customers and when Indian players serving Indian customers, if price is same and they are running ahead of us in terms of addressing demand, how then our platform differentiates from their platform?

See,

like I said, we don't look at this as a Indian TAM alone. We are looking at us as a global player operating in a global market.

Essentially there are enough and more customers for everyone in the market today. I think this may be a question for far into the future that, okay, there is not enough demand, how are you faring, how are you going to kind of try and beat your competitors?

I think for next couple of years, probably this is not even a question, everyone is trying to figure out AI, everyone is trying to build technology on AI. Everyone wants their technology to be adopted by others.

We are one amongst many, many, many players in AI who are trying to push the envelope. The market is large enough.

Any particular niche you take in a trillion-dollar market is a niche which is worth maybe $10 or $20 or maybe $50 billion. I think we feel very, very comfortable in this market.

It's a vast blue ocean. There is no red ocean today that we need to worry about competition today.

We are

very

Just a follow-up on the previous participant's question. Sir, are we exploring off-balance sheet funding for any of our GPU capex?

See, essentially we continue to operate in an ecosystem that exists today, and in this ecosystem everything exists. We have a saying, never say never.

We are super happy to explore any and everything with regard to what we are doing on tech, what we are doing in terms of funding for the GPUs, what we are doing in terms of distribution. We are open to everything to kind of keep pushing our strategy of getting our technology adoption over a period of time.

]:

Okay. If I can just squeeze in one more question.

Hi, sir. Hi.

Hi Pratik ji,

yeah. Hi,

hi. Sir, I just wanted to check.

See, we have two platforms, right? Public platforms, the TIR and JarvisLabs.

At the backend, are the engineering capabilities shared or there is duplication over there? The second is obviously, you will move from developer workloads to production workloads, etc.

How does the handover happen between Jarvis to TIR or at the front-end, is there separate go-to-market strategies? How does that work?

See, both are opinionated platforms on solving problems for their own set of customers. There is obviously going to be overlap in terms of some of the tech that gets built on both the platforms, and there is going to be some overlap in terms of customers as well.

Eventually both the teams are sufficiently different from each other in terms of where they want to kind of take the final technology product, and the final technology journey. I wouldn't even say that somewhere that journey is stopping.

Essentially it's a journey to undertake by both the teams. There is enough and more to build in a massive $1 trillion TAM market.

I think there is no upper limit to the amount of technology you can build.

Understood. How do you ensure that both don't compete at the front-end in terms of pricing, right?

See, I just answered this question. This is a multi-million GPUs per year kind of a marketplace.

I think there is enough and more for everyone not to step on each other's toes.

Okay. Fair, sir.

Fair. Thanks.

Thanks. This was the only question I had.

Thanks, sir. Thank you.

Hi. Hi Hardik ji.

Hi, sir. Hi, Tarun.

Thanks for this opportunity and congrats on a good set of results. Sir, you are not commenting on utilization, but the 1,000 crore contract that we have got for our B200, does that completely exhaust our capacity of the current B200, or do we still have some idle capacity on that end?

Secondly, sir, how is the current supply chain scenario on the GPU procurement, and how are we placed compared to the peers in that scenario? Thank you.

See, again, I'll start from the last question. There is no peer comparison.

We have our own tech journey to undertake. We are not focused on basically any peers in that sense.

Now from a very specific question in terms of whether the current Blackwell capacity is 100% utilized, the flagship Blackwell capacity is fully utilized in the particular contract that was mentioned. Was there a third question, sorry?

No, sir, only this. Sir, on this, are we still facing some backlog in the orders from NVIDIA?

See, it's an organic cycle. Basically you plan ahead and very agilely you kind of react to the market and predict for the near future what you want to deploy.

As those plans fructify, obviously we would keep everyone informed. I don't see any fundamental supply chain challenges that are unsurmountable for us in the near or medium term.

Right. Sir, last question, there is a new GPU launched by AMD.

Is our system compatible to use that GPU in the future if a case or situation comes? See,

from a software point of view, obviously the software that we're building, we would like it to be compatible with anything that is out there. More specifically, for that to happen, obviously we will have to engage with any and every chipmaker, which usually we do.

In the sense that there are a lot of people building chips these days, and we obviously like to keep our eyes and ears open to what is happening. Engage technically to understand everything that is out there.

Obviously, if there is support requirement from our customers for our software to support something, then we are obviously very, very willing and able to build that support.

Perfect. That answers my question.

Thank you, Tarun, and all the best.

Thank you.

Hi. Hi Sonal ji, yeah.

Hello, hello?

Hello? Yeah.

Congratulations team for the exceptional results. My question was on the growth story.

On the deployment part, you have mentioned 1,024 plus B200 planned GPUs, right?

Right.

Can we know the timeline and the funding, if there's a plan?

This quarter we expect the deployment to go through.

Sorry?

This quarter we expect the deployment to go through for the 1,024 [lot?] .

Okay. Any visibility on B300 or Vera Rubin?

We will obviously kind of keep everyone informed as our plans for Vera Rubin and B300 fructify. Okay.

Okay. Thank you.

Yeah.

Hi. Hi, Tarun.

Good evening and congratulations on a good set of numbers. I had just two questions.

Since we keep mentioning our long-term strategy is to sell GPU as a part of technology platform rather than just raw compute, I just want to understand how does probably our economics change when probably the transition happens with a customer maybe a live customer? How does the realization change, how does the gross margin change and probably the ROCs on the GPU capex change?

See, I think that's a question that would get answered over a period of time, I don't think there is a answer to that today. Essentially if you look at any kind of technology play, when you build layers of technology and you get the adoption from the customers, then obviously long-term value gets unlocked for those customers who adopt that technology by reducing their own TCO or building new capabilities for them that allows them to move faster.

That essentially results in surpluses up and down the ecosystem. Hard to put say numbers to that today.

That's where the adoption of tech is a medium to long-term strategy. That's where we are today.

Understood,

understood. Is it fair to understand as we speak currently probably most of our revenues is primarily the GPU raw compute, what we are giving it to our customers?

Majority of our GPUs today run on top of our platforms. There is very, very little bare metal that we sell today.

Understood, understood. Thank you so much.

I'll come back in the queue.

Yeah.

Yes, please go ahead.

Hi. Hi Varun ji.

Hi, Tarun. Good to catch up again.

Tarun, I noticed you guys attended a lot of conferences, a lot of trade shows this quarter and these two quarters particularly. Anything fruitful that you could share, any client feedback, any conversation that helps you improve your product, helps you gain some sense of, from a technology standpoint, how competitive are you, anything that you could share?

Okay. See, essentially, I don't know, there are many worlds.

Basically I think even while we were in the heart of Silicon Valley attending the biggest AI conference organized by NVIDIA, I think a couple of blocks away the conversation was not about AI at all. Now moving from any one place with one set of people working on tech versus another set of people working on completely different say sectors, there is a lot of what you call gap in terms of how people perceive and look at how they are going to deploy and how they are going to use the technology.

I think the magic happens when you are able to bridge the gap between, say, the thinking of a customer in a particular sector with how you can apply the technology that you know. See, technology does not really solve the problem.

It's the people who have to solve the problem. Technology is more like, okay, we're going to run a training.

Now does training solve a real-world problem? Probably no.

For someone in a fintech or a finance sector, or an insurance sector, or a molecular research sector, you have to bridge the gap in terms of what AI can do as a technology and how do you bridge the gap between the objectives of a customer who wants to deploy that technology and kind of do stuff. That's where I think you bridge the gap with the help of industry solutions where you say that, look, we know this part very well and you know this part very well, how can we collaborate together and co-design a solution that works for you.

That also helps us learn some things about a particular domain and how technology can be applied to that particular domain. I think it's a constant process of being engaged in the ecosystem where both the hands-on technologists and decision-makers frequent.

That's the overall idea behind being

Tarun, has any of it flown into the business yet?

It's

still evolving?

It's a diffusion process. Any point-in-time learnings are exactly what they are, point-in-time learnings.

As and when we apply those learnings, obviously we try and publish those case studies. That's a look back rather than saying that, oh, we are predicting that this is what is going to work.

I think that's a longer journey than you could predict just by talking to people. Yes, of course, there are very many experts who know better than us in terms of how they perceive the future.

Then I think somewhere in a very large world, in a very large TAM, you have to be having the humility of saying that we don't know what is going to work, but be agile enough to say that, yeah, let's make it work together, whatever is going to work.

Got you. My second question is related to L&T, they recently acquired 10,000 B300s, and I understand you cannot comment on L&T and their business strategy, but then we as partners could use their idle capacity if they have, or spin up some sort of partnership whereby you use your platform and the capacity provided by L&T.

Any sense, any ideation, anything there? See,

we have a completely arm's length relationship with L&T where they are a valued partner where we work together with them for servicing many of the customers. That being said that similar type of relationships we are building with many other partners as well.

Essentially, we are always open to all possibilities of working with all our partners. Now these things happen when they happen, and when they happen, we'll obviously keep everyone informed.

In the ecosystem, there are very many players and basically all possibilities of working together with all the players continue to remain open.

It's safe to conclude that you guys are open to such an arrangement and if possible you might get

We are open to work with everyone in the ecosystem.

Understood. That answers my question.

Thank you very much.

Right, right.

Hi, sir. Very good evening.

Am I audible?

Yes, you are audible. Please go ahead.

Yes. Congratulation on a good set of number.

Just want to understand your procurement mechanism of the GPUs, how many months or a period do we require to place any advance order for the GPUs to get it went live? Sir, do we require to pay any advance against that, and if yes, what percentage of capex is it?

All these answers are subject to change based on market conditions. We find that this order to deployment cycle can vary between 3 to 6 months typically.

Whether an advance needs to be paid depends on the vendors. Whether they have a requirement of collecting the advance at that point of time.

Probably depends on their order book in some way. Everything is kind of subject to massive changes week-on-week or month-on-month about all the questions that you have asked.

Currently, sir, there is a too much shortage of the GPUs and new GPUs are coming. Don't you think that we need to pay any advance as of current scenario demand and supply?

I am not sure how to answer that.

Sir, got it. Thank you very much for answering question.

Thank you.

Thank you. Thank you.

Hi. Hi Bharat.

Welcome back again. Hi, hi.

Thank you for the follow-up, really appreciate it. Just on the margins again, sir.

Just I understand that you spoke about maintaining 70% plus EBITDAs, but in terms of what our revenues are right now and what gross margins we've done for this quarter, in the medium term, is this gross margin sustainable of 88%? If you can just help us understand what has helped us achieve this 88% gross margin in this quarter also.

See, all of these numbers are moving targets. Essentially these are not really quarter-on-quarter targets.

I'm pretty sure that if in a particular quarter we do a lot of capex at an inopportune time, how these numbers change at that point of time or if we build some capacity in advance of and it's not utilized. I guess so many factors are there.

Tarun, sir, would it be fair that at full utilization this gross margin is broad

Medium term is what we have been saying that, look, this is a 70% plus kind of a EBITDA kind of a business. I don't see any change in that overall target for the business.

Understood. Sir, just on the next Blackwell that we're planning to install, do we already have any contracts set for that, or are we planning to get into a long-term contract for that as we've done for this batch?

Just trying to understand how do we plan to use that.

We have not decided anything around the next lot of B200.

Understood. Thank you.

Truly appreciate taking the question again.

Yeah. Thanks.

Thanks, Bharat ji.

Okay. First of I would like to thank everyone who's patiently listened joined our call and patiently listened to us talk about like how we think.

We do welcome all investor queries to either through our investor relations team at Adfactors, or you could reach out to us via the email ID [email protected]. We are super happy to engage with all of you to try and build a better understanding of like how we feel and how we think about this business.

We hope that you have a great festival season, including Diwali season coming up ahead. Once again, thank you all of you for joining us here today.

Good night all.