Financial Performance Highlights

  • Revenue for Q1 FY27 stood at ₹1,568 million, representing 334% year-on-year growth and 64% quarter-on-quarter growth.
  • EBITDA reached ₹1,179 million with margins expanding to 75.2%, representing a 1,450 basis points improvement compared to Q4 FY26.
  • Profit Before Tax (PBT) was ₹586 million compared to ₹86 million in Q4 FY26.
  • Profit After Tax (PAT) stood at ₹439 million.
  • The performance was driven by operating leverage and the B200 cluster going live.

Operational and Strategic Updates

  • The company deployed 1,024 Blackwell GPUs which achieved maximal utilization.
  • Current live GPU capacity stands at 5,100 units, with another 1,024 B200 units expected in the coming months.
  • The company is focusing on its Sovereign AI platform, emphasizing customer control over model deployment, fine-tuning, data access, and state management using open-source models.
  • The platform includes three layers: AI factory infrastructure, software platforms (TIR and Jarvis Labs), and agentic frameworks for observe-think-act cycles.

Capacity Expansion and Capex

  • The company has taken debt of approximately ₹450 crores to fund the first lot of B200 GPUs.
  • Additional debt is expected for upcoming capacity expansions.
  • Future expansion plans include deployment of B300 and Vera Rubin architectures.
  • The company maintains a 6-year life cycle expectation for GPU generations.

Pricing and Customer Dynamics

  • The company implemented price increases for both GPU and CPU services, citing increased hardware costs (particularly memory affecting CPU pricing) and robust demand.
  • Customers were offered options to maintain current pricing by extending contract terms to 1-2 years instead of monthly contracts.
  • The company reported minimal pushback on pricing revisions, with customers understanding market conditions.

Subsidiaries and International Expansion

  • SovCloud is an infrastructure subsidiary focused on large-scale GPU deployment and enabling funding arrangements.
  • A Delaware-based US entity has been established to focus on international market presence, alliance management, and serving customers outside India.

Partnerships

  • The company has an arm's length partnership with L&T involving utilization of their data center capacity and joint customer engagements.

Management Commentary and Outlook

  • Management characterized the current environment as "day zero of AI" and the beginning of an "AI super cycle" with a decadal growth theme.
  • The performance is considered sustainable due to operating leverage and robust demand scenario.
  • The company is seeing increased customer preference for longer-term contracts (1-3 years) which improves revenue predictability.

Debt and Financing

  • Current loan outstanding is approximately ₹450 crores.
  • Funding for announced GPU deployments is fully arranged through debt, internal accruals, or previous equity raises.
  • The company did not quantify peak debt expectations for the year.

Conference Participants

Management presenters: Mr. Tarun Dua (Managing Director) and Mr. Nitin Jain (Chief Financial Officer)