Thank you. Very good afternoon, everyone.

On behalf of IIFL Capital Services, I welcome the team of Netweb Technologies for the Q3 FY26 earnings conference call. Today we have with us from the management senior team represented by Mr.

Sanjay Lodha, Chairman and Managing Director, Mr. Navin Lodha, Whole-time Director, Mr.

Ankit Kumar Singhal, CFO, Mr. Hirday Vikram, Chief Sales and Marketing Officer, and Mr.

Sanjeev Sancheti, Head of Investor Advisors and IR Advisor to Netweb Technologies. Without much time, I now like to hand over the call to Mr.

Sanjeev for his opening remarks. Thereafter, Mr.

Lodha can take over. Thank you and over to you, sir.

Thank you, Renu. Good afternoon to all the participants.

Before I hand over the call to Mr. Sanjay Lodha for the opening remarks, I would like to draw your attention to the Safe Harbor statement in the earnings call presentation.

I request each one of you to go through the presentation before the Q&A starts, so that you are aware of the Safe Harbor statement. Thank you and over to you, Mr.

Lodha.

Thank you, Renu and Sanjeev. Good afternoon and a very warm welcome to all of you for the Netweb Technologies Q3 FY26 earnings call.

We are proud to state that Netweb has delivered a record-breaking quarter, achieving its highest-ever income and profit. Quarterly revenue stood at 8,049 million, registering a strong growth of 141% year-on-year and 165% quarter-on-quarter.

The company reported an operating EBITDA of 979 million in Q3, financial year 26, reflecting a strong year-on-year growth of 127.1%, while the profit after tax reached 733 million, marking a robust 146.7% growth year-on-year. During the quarter, Netweb successfully executed a large strategic order valued at 4,504 million, reaffirming its position as India's largest OEM in high-end computing solutions.

As communicated earlier, this implementation is of national significance, aimed at strengthening India's AI compute infrastructure. In this context, we would also like to give a broader industry update, as many of you may be aware, the global supply chain, particularly for the flash memory and storage, is experiencing a strong demand by the rapid acceleration of AI adoption worldwide.

This surge has led to industry-wide price increase along with tighter availability. However, owing to our proactive supply chain planning and long-standing partnerships with key technology providers, we have managed the situations very effectively and continued to support our business requirements without any disruptions.

With the execution of this order, the AI systems segment contributed to 64% of Q3 financial year 26 revenue and 48% of nine-month financial year 26 revenue. We would like to emphasize that alongside the accelerated growth of AI, our other two core segments of HPC and private cloud are also witnessing strong and sustained demand.

This exceptional performance underscores Netweb's steadfast commitment to in-house design and manufacturing of next-generation systems fully compliant with Make in India initiative and highlights our contribution to India's emergence as a global hub for high-tech manufacturing. Our order book is very robust, with organic order book at 5,258 million and strategic order book at 17,336 million.

This order book, along with strong pipeline, positions us for strong sustained growth over the next few years. Netweb's continuous focus on its three strategic growth pillars, HPC, private cloud, and AI systems, is enabling us to capitalize on strong industry tailwinds.

Supported by these core strengths, we continue to remain the technology leader in the high-end computing systems space. I now request Ankit to take you through the financials.

Thank you.

Thank you, Mr. Lodha.

Good afternoon, ladies and gentlemen, and thank you for joining our earnings call. Before we open the floor for Q&A, I will provide a brief overview of the financial performance for the quarter and the year gone by.

I trust that by now you have had the opportunity to review our earnings presentation and press release. While our CMD has already discussed the macro outlook, I will elaborate on the financial performance, providing a more detailed analysis.

Our operating income for Q3 FY26 stood at Rs. 8,049 million, showcasing a growth of 141% year-on-year and 165% quarter-on-quarter.

Our operating EBITDA for Q3 FY26 stood at Rs. 979 million, showcasing a growth of 127.1% year-on-year and 115.4% quarter-on-quarter, with a margin of 12.2%.

Profit after tax for Q3 FY26 stood at Rs. 733 million, showcasing a growth of 146.7% year-on-year and 133.2% quarter-on-quarter with a margin of 9%.

Our operating income for nine months FY26 stood at Rs. 14,099 million, showcasing a growth of 92% year-on-year.

Our operating EBITDA for nine months FY26 stood at Rs. 1,883 million, showcasing a growth of 88.7% year-on-year, with a margin of 13.4%.

Profit after tax for nine months FY26 stood at Rs. 1,352 million, showcasing a growth of 90.1% year-on-year with a margin of 9.5%.

Return on equity for nine months FY26 was 30.5%, while return on capital employed for the same period was 41.3%. Our cash conversion cycle as of December 2025 stood at 69 days, reflecting significant improvement compared to the previous quarter.

Our balance sheet strength is reflected by us being a zero net debt company. The company had net free cash of Rs.

1,900.8 million as on 31st December 2025. Our strategic roadmap and growth priorities remain on track, supported by strong year-on-term momentum, a healthy order book, and a solid pipeline.

We are positioned to deliver consistent revenue and profitability this fiscal year. With this, I now hand over the call to Renu.

We can now start with the Q&A session.

Hi, congrats on a great quarter. My first question is, can you tell us the timeline of execution of strategic deals?

Is it the same as before, or are there any changes? Second is regarding the HCI and HPC segment growth, which have been rather slow in this quarter.

What has caused this muted growth, and how will the growth pan out going forward?

Our guidelines on the execution of the strategic order remains the same. We had guided that one order should be executed by Q4.

Actually, it got pre-poned to Q3. You already saw that.

We do target to do at least one-third of the order in this year, overall. Guidance remains almost in the same lines.

As regards your second question on muted growth of our HPC and private cloud segment, I completely think that’s not true, because the growth of both the segments have really been growing constantly. What happens is, since there is a large order execution, on a Q-on-Q basis we could see.

What happens is with our kind of business, it becomes very difficult to measure anything on quarter-on-quarter basis, actually, because we have a very large interface in government customers. Order execution, since, as I mentioned to you, since the large strategic order, I had not guided that it will be done in Q3; we pulled it to Q3.

The same way, Q-on-quarter-on-quarter rate can vary, but overall, both the segments, as you might have seen in the Q1, Q2, and the overall nine-month results, are very robust and really, because all those areas are really demanding, supercomputing is growing at a good way, and private cloud, again, the data center market is booming.

I’d just like to add here, Sanjeev, if you look at the YTD growth, then these two segments have delivered 20%. There will be some quarters where some segment will do better and some will be lagging behind, but overall, I think these three segments will continue to grow at a very strong pace, as we have guided earlier.

Of course, we have to remove the strategic order and then see the growth of the other segments, the AI segment.

Thanks. My next question is regarding exceptional items.

Many companies have announced costs from implementation of new labor codes. Any reason we have not announced?

Seema, there is no material impact of new labor codes on our financials, because as per the new labor codes there is a revision in the wages definition, and we were already compliant on the structure that new labor codes have clarified. That’s why there was no impact on us.

Got it. Thanks and congratulations.

Thank you.

Hi, sir. Thanks for the opportunity.

Congratulations on a good set of number. I had just one question, more of a strategic question as such.

How do you foresee the budget for AI mission evolve in coming quarters, as the initial allocation orders were only for 4500-odd crores and 10,000 GPUs? When do you think further orders would get placed, and what would be our win percentage within that?

Thanks so much.

The government focus is phenomenal on AI, actually. As you might be aware that recently the new AI Impact Summit is being held from 17th to 20th of February, where the Prime Minister himself is supposed to be sharing the stage with NVIDIA CEO.

Basically, there is a lot of focus and impetus from the government on the AI side of it, and AI mission has been there, and basically we have always been saying that AI mission will roll out, and you already started seeing it roll out, actually. As I had been telling continuously, there are two parts of AI mission, actually.

One is they will be taking GPUs on lease from the CSPs and then offering it to the startups and basically various kind of bodies who are working on citizen-centric services, so as to enable those kind of development. The second part will be wherein the government will be clearly buying the GPUs for their own data centers and all.

Second set of things are yet to come, but the first has just started. There is a lot of pressure on the government also to increase their spending, and I think phenomenal planning and phenomenal execution is going on in that case.

Plus basically there is a lot of assurance, and there is a lot of statements from the government clearly indicate that they are ready to even offer more money. I don’t think money is a challenge, but primarily the spending has started, and I think it will gain momentum as the time passes on.

If I could just clarify once more thing. In the earlier case, correct me if I’m wrong, it was the order was placed for 10,000 GPUs and 4500-odd crores.

In that, I believe we have 12170-odd crores of strategic order which you had announced last quarter. Now has this entire 4500-odd crores, will there be release of orders being placed, or we are still left with certain orders being placed within that 4500-odd crores?

I would have left Hriday answer that question, but basically let me give you a brief and maybe Hirday can take it up from there. Basically this was 10,000 crores was the value, okay, and the number of GPUs was not specified actually, okay.

The first thing is that, and second is that basically they are not offering the 4500 crore, the GPU order has not come as yet. Basically it will come in different way, actually.

Maybe Hriday can explain and elaborate that.

Yes, I will do so. Basically there are two sets of procurements which are happening right now.

One is that we have to build the GPU, they want to render these GPU services through the internal CSPs. That is one effort of procurement by Government of India.

Second procurement is that what you were referring to, that we have to do the procurement for on-prem infra, which we have to build using GPUs. That is yet to start.

What we have been executing so far, or what we have shown as the strategic orders what we have picked up, that is pertaining to the first type of procurement what they have done. Second is yet to start.

I hope this answers your question.

Sure, that helps. Thank you so much.

Thanks for the opportunity, sir. My first question is recently obviously we have been hearing a lot about the shortages in memory chips, especially for DRAM and HBM.

A, what is the share of DRAM, HBM in our bill of materials? How are you seeing the shortage of these chips impacting or having a potential impact on your execution timelines and margins, given that most of our orders are fixed price in nature?

As regards the BOM, normally we don’t share the BOM, that the percentage of a component in a BOM, and it varies also as per the user requirement, as per what they need and what is their application and all that. It is not fixed as such.

Definitely memory and flash and storage is a substantial part of the BOM. There is no doubt about that.

Answering your question on the other side is that, as we all are aware, that there has been huge shortages and huge price jump, and all this is happening because of the AI demand surging worldwide. This is not a domestic event.

This is an international event, wherein the complete AI demand is surging like anything, and so the manufacturing capability of memory and other things are not able to cope up, and that is resulting into shortages and price hikes. You see that even that was happening, but still we have performed all our deliveries, and our performance has been, we have grown our revenue, has grown by such a huge number.

That has only happened because our supply chain planning has been very, very effective. Since you have to understand one thing that the industry is experiencing shortages in flash and memory, but we have managed this challenge effectively through proactive supply chain planning and strong technology partnership.

Our focus on high-end niche solutions rather than box pushing allows us to maintain deep and long-term relationships with key suppliers, which gives us priority access to critical components such as storage and memory. For new orders, pricing will be aligned with the prevailing market dynamics at the time of the order placement.

This approach ensures transparency while allowing us to continue delivering reliable, high-performance solutions despite ongoing supply constraints. It's very clear that we are minimally impacted, and I don't think this will impact either our profits or our delivery timelines.

Hello?

Yeah. Thank you, sir, for this.

The second question is if you look at the organic growth, excluding the strategic order execution which was done in the current quarter was slightly soft, just about 6% Y-o-Y. If you can share some inputs in terms of how is our capacity lined up to sustain the organic growth momentum in 30-40% CAGR range which we have been highlighting over a longer period time frame, and were there any specific issues in terms of delivery deferments or other elements which impacted the organic growth in the particular quarter?

What would be our guidance on the organic growth side for the annual fiscal 26 and fiscal

24? Answering your first, the last question first.

As we have been guiding all along that our growth will be at 30-40% CAGR. We still maintain that on the organic side, and we will basically, if you see the order book, that will all give you the confidence.

It's 525 crores on the, primarily on the organic side, plus L1 is around 300 crores. That makes it around 800 crores.

Basically order book is really full, and we have a very good order book on the organic side. That gives me the confidence that it will continue at the same way.

Your other question was primarily on the supply, on basically on the manufacturing capabilities or the capacity. We have always been saying that we are not a capacity-based organization; we are a capability-based organization.

Primarily, we don't need to make any kind of, primarily we don't have any capacity challenges, like manufacturing capacity and all that, because we have very clearly indicated that up till 25,000, 2,500 to 3,000 crores, our manufacturing facility is almost all very, very sufficient. We don't need to really invest into capex and all.

That's not a limiting factor. What happens is that definitely once a large order comes in, at some point some smaller orders get pushed into the next quarter.

That may result into some kind of number kind of changes. That's the reason I always say that in our kind of business you cannot see anything on quarter-on-quarter basis.

You have to see it at least basically on a year-on-year basis, or if not H1-H2 kind of a basis.

Even if you look at, if you ignore the strategic order, on a Y-o-Y basis we have grown over 30% for nine months.

No, I am done on this side. Thank you.

Hi sir, thank you for the opportunity, and congratulations on great set of numbers. A few questions from my side, sir, margins have come down for us in this quarter, and we were expecting margins to come down because of the large deal execution.

Next three quarters we will continue to execute this large deal. Can we expect margins to be in this range for the next two to three quarters?

Let me just take this question. We have guided that we'll be about 256 points lower at the PBT level on the strategic order, because obviously these are very strategic large order, and that's the way these orders would come.

If you kind of remove the strategic order and do a weighted average, then you will see that we would have done a margin of about 9.9% in the quarter and YTD above 10%. I think we continue to guide the same.

In strategic order we'll be about 200 basis points lesser on the PBT level. Whatever mix we then achieve every quarter, probably you can be guided like that.

Just to understand, because we did 15% margins for the last two quarters, and you had mentioned that these are exceptional margins and the range will still be between 13 to 14. Is that the range we should take for the constant business going ahead?

Yes. You're absolutely right.

Because we can very well understand in today's market dynamics if we are able to just take up orders worth 500 crores at 200 basis points below, I think we should be complimented for that. Basically, because it's really in this world, which is very dynamic, and which is really basically all these kind of solutions are being sold and adopted in spite of everything.

Definitely that helps. That speaks a lot about our company's products and the range of solutions.

Yes, completely. Just two more questions.

One is on the cash flow. First half we posted 100 crore-plus CFO.

For nine months, what's the status, and is there any inventory pileup for the execution which we will do for the next few quarters?

Vinay, as far as inventory pileup is concerned, all inventory is basically for our upcoming orders and stocking of our critical components. There is no pileup as such.

If you see, our inventory days were maintained at 60 days as of 31st December. Regarding the cash flows, we had positive operating cash flows in this quarter by close to

33 crores,

and

YTD was about 134 crores.

Okay.

Cash flow from operating activities.

50 days itself says that there is no inventory pileup.

Yes. No, I just want to understand for Q4 how are we placed, so that we can get clarity for the year.

Inventory planning is very good. The supply chain planning is happening very well, actually.

The technology providers are helping us. Definitely we are very...

I don't think we have anything to worry on the inventory side, actually.

Okay. Just one last question from my side, sir.

You're seeing the way ASICs are coming as an alternative to GPUs, and there is a big risk that GPU demand might just come down in H2 of 27. How are we placing ourselves for that?

Because we do have a very good relation with NVIDIA, but are we looking to build relations with people who are in ASICs, Google or Broadcom? Is that a plan for the company?

Actually, speaking, if you really see the kind of today you are seeing that memory shortage, shortage of storage and everything is happening because of the AI demand surge. Okay.

What my personal feeling is that we are at the tip of the iceberg, speaking. People may talk about bubble and all, but basically what my feeling is definitely AI has just started, and basically if you see the demand, the worldwide demand, that answers it very well.

Nobody can sustain that, but there is a wishful thinking that we need a substitute. Definitely.

Netweb is a very open company. We are not married to anybody that we have to work with only NVIDIA or somebody else.

We are very clear, and we are always open to working on new technologies. The only thing which we work is that we work on complete technology indigenously.

We design our hardware, we manufacture our hardware, our software, everything in India. Basically it may be Google, it may be anybody else.

We are more than glad to work if there is market adoption and market dynamics desire that. We are fully capable of doing that.

Okay. Thank you so much, and thank you.

Thanks for the opportunity. Thank you.

Hi, sir. Congratulations for the great set of numbers.

Sir, I was just having a question regarding our order book. Our organic order book is strong, and obviously the L1s combined is around more than 18,000 crore.

For the strategic order, are you seeing any kind of deal or any big size order for the next longer term, for the next one to two years?

Definitely yes, because basically a lot of discussions going on. There is a lot of activity happening, but strategic orders we are not guiding earlier.

Strategic orders we are announcing as we are winning it. We will maintain the same stance.

Sir. Thank you.

All my other questions have been answered. Thank you, and all the best.

Good evening, sir. Can you hear me?

I can hear you very well.

Yes, congratulations. Good set of numbers.

I have three questions. The first one is regarding your import component, sir, and your hedging policy for that.

Do you have a hedging policy for any import? The prices of any import component fluctuations?

Just give a sense of what you have in that.

We have a hedging policy for currency fluctuations, which CFO will elaborate.

There is a hedging policy, very well adopted. To talk about it, we also have forward contract as on December end, which close to cover our 60% of our payables pertaining to the import payables.

We are very well monitoring the situation on currency and doing the effective hedgings wherever necessary. Just to apprise, there is an MTM gain also, although that underlies, but it comes out to be close to 2.8 crore of gain, which is appearing in our other income category.

We have a clear hedging policy, and obviously the accounting is done as per the accounting standards.

Okay. Second thing, in your first quarter call, you mentioned that you have some plans regarding quantum computing.

Can you just elaborate a bit on what sort of plans you have in quantum computing? Is it making quantum computers, or related to software in quantum computing?

Can you just elaborate on that?

Actually, that also I told you, please have some patience. Once we have the complete quantum policy, we will come to you and we will let you know for, basically, market interest.

At this point of time, for competitive information, we would not like to share our plans for quantum as yet. Definitely we are working on the background.

Once we have it ready to disclose, we'll disclose it.

Okay, okay. That's fine.

My third question is, today you made a forecasting that, okay, for FY2026, the top line growth will come to around 2,000-odd crores. Would the revenue go beyond that, or are you still sticking to around 2,000-odd crores top line growth in FY2026?

As basically as earlier also we don't guide by the final number, actually. You are already seeing the company growing at a phenomenal rate.

Definitely basically we will only guide that our growth will be between 30 to 40% CAGR on the organic front. We will still maintain that.

Okay. Thank you so much.

Hello.

Yes.

Actually most of the questions has been answered, but I want to understand what exactly you do in AI system. If you get an IndiaAI order, are you providing GPUs, or you are doing model development?

If you are providing GPUs, then why depreciation is not there?

Basically you will have to understand depreciation is not there. That my CFO will answer you.

Basically what we are trying to do, you need to understand that. We are designing the complete AI server actually.

Basically on the NVIDIA and all these people, we work with them. We have exchanged the roadmaps around more than around 18 months in advance wherein we work with all the new designs and architecture.

We develop a very efficient product. We then basically once the design is done, then basically we buy chipsets from various technology providers, and then we have our own manufacturing capability where we manufacture it, and then we finally sell it.

Once we sell it, basically that is along with the GPUs. GPUs is only one component of the server.

GPUs by itself will not run actually. They need to be completely a part of the server actually.

GPU comes as chip to us, okay, then that gets integrated into the servers, and then we sell it to the customer. The ownership is not ours.

Once we sell it to the customer, customer runs the GPU. Maybe I will answer it.

So

the business model is when we manufacture servers, we upfrontly sell it to the customer. For customer it's a CAPEX purchase.

It may be a CAPEX purchase for customer. For us it's a revenue event.

Basically you are a provider, service provider here, actually.

No. We are a manufacturer.

Go ahead. Yeah.

Basically beneath the application layer, we have got the complete stack which we provide. It's not basically that we are a provider of one type of component only.

Beneath the application layer, right from compute, the interconnect, the storage, and then the complete AI cloud stack, and on top of it, the middleware. All these things are basically given in the form of a solution by us.

It's not basically that we are supplying the GPUs itself, because as we mentioned that GPUs will not alone work in the system. That's the reason it has to be understood as a complete solution which we are providing.

Then what is your role in data centers? Do you have different segments?

Let us answer this question, because we'll create confusion on the...

AI system, data center, सब related है, तो थोड़ा confusion हो जाता है कि exactly आप यहाँ पे क्या करते हो, इसमें क्या करते हो. सुनिए, बहुत

simple है. एक data

center मेरा customer है, हम उसको server पूरा system बेचते हैं,

software के साथ हम बेच देते हैं. जैसे गाड़ी है ना, कोई जो एक

example देता हूँ आपको, जो travel agent company है, वो गाड़ी भाड़े में देती है, और जो गाड़ी का manufacturer है, वो क्या करता है, वो गाड़ी बेच देता है. तो हम गाड़ी के manufacturer हैं, हम Tata Motors हैं, समझिए, और जो travel agent है, वो गाड़ी भाड़े में देता है तो उसके लिए depreciation है, उसको service income मिलेगा, मेरे को तो manufacturing का sale income मिल रहा है.

Is it clear now? अच्छा ठीक है सर, ठीक है ठीक है.

तो

GPU आप खरीदते हो ना, मतलब NVIDIA जैसी company के लिए आप GPU बनाते तो नहीं हो ना अपने पास? GPU कैसे बनाएंगे?

GPU के

chip हम लेते हैं, GPU हमको NVIDIA देती है और फिर पूरा GPU अपने आप में GPU आप ऐसे गाड़ी की तरह चलेगा नहीं. GPU को chip को motherboard को integrate करना पड़ता है, तभी जाके आपका server चलता है.

Got it. ठीक है सर.

Thank you, sir.

Sanjay, management. Thank you.

Congratulations on the very strong earnings. I want to ask about the constraint, because apparently your revenue is growing very fast.

You talk about you don't have manufacturing constraint, but do you see any other constraint like labor, talent? Recently, after you have done IPO, doing very well, does that help you for your overall acquisition, talent acquisition strategy?

If that may be along that line, can you update how many people you actually have in the company, and maybe year by year, how many engineers? How are you doing on the talent front?

Thank you.

Thank you for your question. It's a very good question, sir.

Thank you for asking such a question, actually. Really speaking, as Netweb is a company which is very clearly focused into its niche segments, we don't want to get into any kind of box-pushing or volume manufacturing kind of situation.

We have kept our focus very clear. Netweb is successful because of that only.

Netweb has kept its focus very clearly into the supercomputing, into the private cloud, into AI. All the three segments contribute 90% of my business.

All these three segments we are doing for years together. None of these segments started somewhere a few years back.

All these segments are more than 10-year-old for us. Basically the major talent which we faced while we went IPO, actually, I don't know whether I met you earlier or not, but I think I should have told you that what happened is that the earlier, when we went IPO, because we wanted to retain our talent and to hire new talent.

We were 240 people while we went IPO. Today we are 600-plus.

Definitely that thing has been addressed very well, because it has given us more visibility. Plus the technical talent is very, very important for us.

If we are a product company, we are not a services company. We invest quite heavily on R&D.

R&D talent is very important for us. Our R&D team is around 100-plus people, both software and hardware together.

I think we have been able to definitely clearly been able to come away with the constraint which we had, primarily on the talent side, and we are doing very good on that. Definitely we are always looking for new talent, good talent.

You will always find, if you go to our LinkedIn page, you will find a lot of openings at all times, actually. We are always looking for better talent, good talent.

That is definitely, that is ongoing process. I would like to tell you that we are much better off.

As regards finance and all, really see we are a zero-debt company. Our debt-raising power is phenomenal, but we don't need debt actually, because we are able to manage our finances very, very clearly.

Our technology relationships also helps us so as to handle the supply chain also, because we have large technology relationships with three or four major vendors, which are also very long-term relationships. These are not any short-term relationships.

That is helping us. Currently even in the situation where the storage and the memory is under shortage, but we get good adequate support.

Same way with NVIDIA also, we are currently working on the orders which we are fulfilling are based on Blackwell 200, which is same as any other large OEM doing in the world. In India also we are trying to do the...

India is not at the back. India is at the forefront.

We are already working on B300, GB300s on the latest chipsets. Same way on the Intel side, we are working on the latest chipsets.

Again on the AMD, we are again working on the latest chipsets. Before the product release, we have access to the roadmaps, we start working.

The niche and the focus always helps us. On the manufacturing side also, we don't find any constraint, really speaking, because you saw the growth, but still we are saying that we don't want to increase our capex primarily till the revenue of 2,500 to 3,000 crores.

Approximately we are very good at that. The other thing acquisitions and all, definitely we are looking for acquisitions, but we are looking for acquisitions which can fast-track our R&D process, because we are, whatever business we are doing, we are very happy with it, and all the three areas are very, very growth areas.

Tomorrow instead if we can invest our own engineering team six months to one year to develop something wherein we can get a kind of a, we can do acquisition which can speed up that process, that would be good. We are looking for such acquisitions primarily.

I hope I am able to answer your question.

Thank you.

Thanks for the opportunity and congrats on a good set of numbers again. Ritesh, this is a question to you with reference to earlier question with Google's TPU and Amazon's Trainium OpenAI's tie-up with Broadcom.

Are we also started doing some design R&D on these kind of a platform? Because as of now we are in prevalence and partnership with AMD, Intel and NVIDIA.

Do you believe these hyperscalers' new chips can be also adopted by the enterprises, or this could be more for their internal work?

Thanks, Sandeep, for the question. I would say that as we mentioned earlier also, for example, for quantum, we are unable to disclose much details at this stage.

Likewise for chip designing, etc., as well, we are unable to disclose too many details at this stage. Maybe we can discuss one-on-one on this front.

Yes, as we mentioned clearly, that we are working on different technologies already, be it x86 architecture-based systems, be it Nvidia-based GPU system architecture, or the other probable options which are available. We are working on all those fronts.

Yes, disclosing details at this stage would be too early for us to do it in this call.

Fair enough. Just a clarification, our target of one-third of strategic order by Q4 of this financial year is for the total strategic order size of 2,184 crore, right?

That is correct, Sandeep ji. That's our target.

Okay.

Sanjay sir, is it trade to assume even in fourth quarter we can have a credit for PLI if government approval comes within nine months? Looks like.

Looks like.

Okay. Last question, any other order pipeline getting created for the strategic orders, maybe for the first type of companies?

That's an ongoing process, Sandeep ji. There is a huge basically opportunity on our hand, which we are constantly working.

As we mentioned, we are not guiding on the strategic orders. We are announcing as we are getting it.

We still maintain the same.

Okay. Sir, last question, fourth quarter is generally seasonally strong for business outside strategic orders.

Do you believe same can repeat in this financial year as well?

Your wishful thinking really helps us to think positive.

Sir. Thank you.

Hello,

Congrats for good set of numbers.

Thank you.

Sir, we see the spike in the commodity price, especially copper. This is critical for power transmission and data center infrastructure.

How do you see the impact on economics and timelines of AI-led data centers deployment in India? Are you observing any deferment of orders, demand slowdown, or longer decision cycle for customers due to high power and infra cost?

Or does the AI-driven demand remain largely insulated?

Sir, your question is really interesting, but I personally feel the copper prices are going up because of the data center demand. Rather than copper pricing restricting data center demand, this seems a very, very far-fetched thing.

Really speaking, because the way the data centers are growing, definitely copper prices are really, I think, getting stronger because of that. Overall metal sentiments are different, but still I feel that's the reason.

I personally feel, because the data center boom and the opportunity is there, I don't think copper pricing will really impact or slow down the growth or something. Definitely it will factor in.

The cost will be higher because of electrical components and all. We don't deal in most of them.

We also use copper, but our copper use is limited. It is not that much.

Primarily we have some copper use in our servers, and some components it's being used. Still I personally feel that these prices, whatever price hike is happening on the copper side of it, the industry is such a vast high technology industry, will easily be absorbed and it won't slow it down.

Sir. Thank you.

Understood.

Hello, sir. Can you hear me?

Yes.

Sir, I have two questions basically. One is I just want to understand what is the difference between your organic order book and strategic order book?

Is there a difference between, in terms of revenue recognition or the project cost? That's my first question.

Okay. When we say what is organic, inorganic, there are certain very large possible orders which the company is pursuing business.

These will be large orders, which generally could be 400-500,000 crores. We call them strategic orders.

There are no difference in the accounting policy, the revenue recognition, etc. On the margin side, larger order, we have already guided that these will be about 200 basis points lower at the PBT level.

I think that's the difference. Otherwise no difference in the accounting treatment, etc.

I hope that answers you.

Understood, sir. Sir, and so if I'm excluding this execution of this strategic order in Q3, my nine-month revenue comes around 1,000 or 1,100, with the current quarter revenue around 400 crores, if my understanding is right.

Am I right?

Should be in the same

ballpark,

more or less right.

So

Basically on account of strategic order, we are able to do around 400 crores of revenue on a quarterly basis.

No, we are not saying that. Every quarter will not be the same.

We are not an FMCG company. Be guided by what we have given for an annual guidance.

Quarter on quarter, it's not cast in stone that every quarter will be 400 crores.

No, I just want to understand whether this business is cyclical or periodic, which in essence whether the first half is better in terms of revenue recognition, or usually EMS company where the revenue flows towards the end of the year. I just want to understand that from that point of view.

There is some difference between first quarter, first half and second half, but quarter on quarter different we have seen different quarters doing better. In some years we have seen Q3 to be the best, some years we've seen Q4 to be the best.

Basically

second half is better.

Second half is better than the first half.

Answer this 500 crores of organic order book. What's the timeline for you to execute these orders on a bottom cycle?

450 is already built, right? 525.

Organic order

book. Order book is basically our order book billing cycle is 12 weeks to 16 weeks normally.

And

how long will this L1 order of around 300 crores, will it take for you to recognize in the order book, convert it to a proper order book?

I think within the next 8 to 10 weeks it should be there.

Sure. Thank you, sir.

Thank you.

Sir, I just had one question with everything looking so positive, what could go wrong with the business? I'm not talking about the short-term challenges here, chip and all.

Talking about some long-term, any long-term issues you could face, which could derail the growth of your company?

Speaking, I'll have to spend a night to think about it, actually. Because basically...

No,

if you can just highlight three, four main points, that would be helpful. Yeah.

One minute, let me tell you. If you really see, this is I think the 12th quarterly result which I have presented after listing.

You will see consistently every quarter we have grown. Every, if you really see, the growth has been very, very consistent.

It's very difficult to do this kind of business because this is just because of our niche and focus. I think it's a...

We are not into volume company or something of that nature. It's primarily quite good.

Overall we don't find any major kind of any black swan event. If it comes tomorrow, if earthquake comes or something happens to the world and company, we also cannot do anything about it.

Overall other than that, I don't see any major challenge ahead. Please in the medium term.

Yeah.

Okay. You are saying that 30-40% kind of growth, even if maybe in next two odd years your base goes up, that 30-40% per annum is quite achievable.

You are saying that?

Yes. At least next two to three years we are targeting that.

Okay. Are you thinking anything about the capacity addition after 2,500-3,000 crores?

Yes, definitely. Some kind of...

We are capability-based. It's an ongoing process which keeps on going.

Definitely if that requirement will there, we are fully equipped to do that.

How much time it will take for you to ramp up that once you start doing it?

Actually again, these plans are very, very close to the company actually for competitive information. We would not like to share that.

Just to give you the comfort that business will not be constrained by capacity.

That's true.

We'll do what needs to be done if we have business to be done.

Okay. Thank you, sir.

That helps. Thanks.

Thank you for the opportunity, but actually most of my questions are already being answered.

Thank you, ma'am.

Thanks.

Thank you everyone for your patient participation. I would now like to hand over the call to Mr.

Sanjay Lodha for his closing comments. Thank you and over to you, sir.

Thank you, Renu. Thank you to participants and great partnership and the great trust which you have bestowed upon us.

We'll do our level best. Thank you so much.