• AI factory rollout: The company's first 8,200-GPU AI factory is scheduled to go live within 40 to 50 days, driving revenue growth from Q3 onwards with a target to deliver a new large AI factory every two to four quarters.
• Capex and expansion: Out of the ₹720 crore IPO, ₹576 crore is designated for capital expenditure to build data centers in Bengaluru, Nashik, and Mumbai, as well as procure 200 to 400 GPUs alongside servers and storage.
• Margin and ROCE: While self-built assets are targeted to deliver 85% EBITDA and 40% to 45% PAT margins, partner-leased infrastructure will deliver 15% to 20% PAT margins alongside higher ROCE due to zero debt or equity commitments.
• Cloud partnership model: ESDS is executing an asset-light international strategy by leasing AI hardware from overseas partners, such as Australia's Sharan AI, and overlaying its proprietary Swaraj Cloud and end-to-end managed services.
• AI infrastructure outlook: Management expects structural demand for AI hardware to remain robust for at least five to seven years due to semiconductor constraints, with GPU assets retaining 40% to 50% residual value after seven years.