Netweb, E2E Networks, Sterlite Technologies and HFCL are already converting AI demand into revenue, while larger groups remain in the costly infrastructure build-out phase.
India’s artificial intelligence rush has become as much a market story as a technological one. Over the past year, investors have treated “AI” and “data centre” as shorthand for future growth, pushing up shares in companies that announced large projects, ambitious capacity targets and, in some cases, eye-catching order books. Yet the latest results show a more complicated picture: some firms are already converting the boom into sales and profit, while others are still building the infrastructure that may one day support them.
Among the earlier beneficiaries of the trade, Netweb Technologies has been one of the clearest examples of business catching up with expectation. According to figures released with its latest quarterly update, revenue rose 172 per cent year on year to Rs. 819.68 crore in Q1 FY27, while net profit increased to Rs. 85.32 crore. AI systems accounted for 62 per cent of quarterly sales and grew 484 per cent from a year earlier, while the confirmed order book stood at about Rs. 2,507 crore at the end of June 2026, with another Rs. 848 crore where the company was the lowest bidder.
E2E Networks has also moved from promise towards performance, though with more volatility. The company reported Q1 FY27 revenue of Rs. 156.76 crore, up 334.12 per cent from a year earlier, and profit after tax of Rs. 43.88 crore, reversing a loss in the comparable quarter. Its live GPU capacity has climbed above 5,100 units, including newer Nvidia B200 machines, and monthly recurring revenue reached Rs. 37.4 crore. Even so, the company’s results have swung sharply over recent quarters, reminding investors that GPU businesses can be capital intensive and uneven before they settle into steadier earnings.
MTAR Technologies, meanwhile, sits slightly differently in the AI ecosystem. It is not a pure data centre operator, but it supplies components linked to fuel cells and other infrastructure that can support energy-hungry computing facilities. Its most recent numbers showed strong growth, with quarterly revenue and profit both rising sharply, and management has also disclosed a direct data centre infrastructure order of about Rs. 45 crore. But that order is still in the execution phase, and much of MTAR’s broader order book spans sectors beyond artificial intelligence.
Fractal Analytics has offered another reminder that the AI label can cover very different business models. The company, which listed in February 2026, sells analytics and AI services rather than physical infrastructure. Its revenue rose 20 per cent in Q1 FY27 to Rs. 912.5 crore, while net income climbed 92 per cent to Rs. 72.3 crore. Yet constant-currency growth was only 9 per cent, and newer offerings are still developing, with its Fractal Alpha unit posting a segment loss. That suggests the company is growing, but still investing heavily to expand its product set.
The larger part of the boom, however, has centred on a race among India’s biggest groups to announce gigawatt-scale data centre plans. Reliance Industries has said it is building AI data centres in Jamnagar and has also tied up with Meta for a 168 MW project, although it has not disclosed commissioning dates or project-specific financials. Adani Enterprises has been more explicit on tied-up capacity, saying its AdaniConneX venture has secured more than 960 MW, but only 65.4 MW was operational as of June 2026. Bharti Airtel’s Nxtra is targeting 1 GW over the coming years, yet management says its current base is still around 120 MW to 130 MW. TCS, through HyperVault, has also set a 1 GW ambition over five to seven years, but has yet to disclose any commissioned capacity.
Larsen & Toubro and Lodha Developers have similarly positioned themselves as major future beneficiaries, but their operational footprints remain far smaller than their aspirations. L&T’s Vyoma business commissioned 12 MW at Kanchipuram during FY26, with another 6 MW near completion, while it has spoken of a 200 MW target over time. Lodha has gone further on land monetisation, selling plots at its Palava park to operators including AWS, STT and Digital Edge, but its larger powered-shell data centre plan remains a future project rather than an income stream. In each case, the announcements are real, but the revenue is still some distance away.
A separate part of the story has emerged in the fibre and network equipment space, where investors have increasingly looked for indirect AI exposure. Sterlite Technologies has staged an exceptional rally, and its latest results show why. Revenue in Q1 FY27 rose 87 per cent year on year to Rs. 1,910 crore, EBITDA increased 184 per cent to Rs. 397 crore, and net profit reached Rs. 197 crore. The data centre business contributed 21 per cent of quarterly revenue, up from just 1 per cent in FY26, helped by overseas hyperscaler demand and a long-term supply agreement that could become material over time, although the customer has not been named.
HFCL has posted a similar improvement. Its Q1 FY27 revenue more than doubled to Rs. 1,915 crore, while net profit turned to Rs. 246 crore from a loss a year earlier. Exports also climbed sharply, and the company has said it is expanding fibre and cable manufacturing capacity to serve data centre demand. Even so, much of that investment is still under construction, and its broader order book is spread across telecom as well as AI-related work.
The latest IPO wave has shown how quickly expectations can run ahead of delivery. ESDS Software Solution listed to a strong market welcome after its Rs. 720 crore offering was heavily subscribed, but its first results as a public company were more subdued. Revenue in Q1 FY27 grew just 7.28 per cent to Rs. 133.66 crore, while profit increased 14 per cent to Rs. 29.28 crore. The company has said its biggest AI-linked opportunity, a GPU deployment arrangement with Sharon AI, is not yet fully live, and that execution delays remain possible. Other companies, including Sify Infinit Spaces and Yotta Data Services, have also been linked to fundraising plans, underlining how crowded the field has become.
What all of this suggests is that India’s AI boom is neither pure hype nor a fully realised industrial shift. There is real spending, real construction and, in some cases, real earnings. But the gap between signing contracts and generating recurring revenue remains wide. Companies such as Netweb, E2E, Sterlite and HFCL are already showing tangible gains, while Reliance, Adani, Airtel, TCS, L&T and Lodha are still working through the long build-out phase that comes before the profits. For investors, the critical question is no longer whether the opportunity exists. It is which businesses are already earning from it, and which are still asking the market to fund the next stage.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
