E2E Networks Limited (E2E)
₹694.85 -2.26% last close, 16 Oct
Q2 FY27 results
E2E Networks Limited reported Q2 FY27 results on 16 Oct 2026: revenue ₹224 Cr (+410.9% year on year, +42.7% on the previous quarter), and net profit ₹72.7 Cr (against a loss a year earlier); the operating margin was 76.6%.
| Q2 FY27 (₹ Cr) | Value | YoY vs Q2 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹224 | +410.9% | +42.7% |
| Operating profit | ₹171 | +852.0% | +45.4% |
| Net profit | ₹72.7 | from loss | +65.7% |
| EPS (₹) | 3.54 | from loss | +65.4% |
| Operating margin | 76.6% | — | — |
- Turnaround: profit against a loss a year ago
- Operating margin expanded 3551 bps YoY
- Borrowings up 213% since Mar 2026
Quality of profit: of pre-tax profit of ₹97.1 Cr, ₹87.2 Cr (90%) came from the core business and the rest from other income and one-off items.
Share price since the results: -2.3% (close before the filing to the latest close).
E2E exchange data
NSE end-of-day data for
It closed at its lower price band (circuit) on 16 Oct, one of 9 band closes in about the last 20 sessions.
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📢 Recent Corporate Announcements
E2E Networks reported massive growth in Q2 FY27, with operational revenue rising 410.8% YoY to ₹223.8 Cr and PAT turning around to ₹72.7 Cr from a loss of ₹13.5 Cr in Q2 FY26. The company also announced a binding term sheet worth ~₹1,000 Cr (excl. taxes) with an India-based Sovereign AI firm valid through June 2029 for NVIDIA Blackwell GPUs. Total live cloud GPUs reached ~5,100, including 1,024 NVIDIA B200s, driving EBITDA margin to 76.6%. The contract size of ~₹1,000 Cr represents over 320% of E2E's TTM revenue of ₹311 Cr.
- Q2 FY27 revenue rose 410.8% YoY to ₹2,238 Mn (₹223.8 Cr) with EBITDA margin expanding to 76.6%
- Binding term sheet signed for ~₹1,000 Cr through June 2029 for NVIDIA Blackwell GPUs (~321% of TTM revenue)
- Q2 FY27 PAT surged to ₹727 Mn (₹72.7 Cr), up from a net loss of ₹135 Mn in Q2 FY26
- Live GPU capacity expanded to ~5,100 units (including 1,024 NVIDIA B200s) with 1,024+ additional B200s planned
- Monthly Revenue Run-rate (MRR) climbed to ₹751 Mn in September 2026, marking a 13.4x rise over 4 years
E2E Networks reported strong Q2 FY27 results with revenue jumping 410.8% YoY (and 42.7% QoQ) to ₹2,238 Mn (₹223.8 Cr), driven by the deployment of NVIDIA Blackwell GPUs and improved fleet utilisation. Operating EBITDA margin expanded to 76.6% with PAT at ₹727 Mn (₹72.7 Cr), compared to a net loss of ₹185 Mn in the prior-year period. In addition to earnings, the company signed a multi-year binding term sheet of ~₹1,000 Cr valid through June 2029 with an Indian sovereign AI company, representing ~3.2x its TTM revenue (₹311 Cr). H1 FY27 PAT stood at ₹1,166 Mn versus a loss of ₹163 Mn in H1 FY26.
- Q2 FY27 Revenue grew 410.8% YoY and 42.7% QoQ to ₹2,238 Mn
- EBITDA margin reached 76.6% with EBITDA at ₹1,715 Mn; PAT came in at ₹727 Mn
- Signed a binding term sheet worth ~₹1,000 Cr with an Indian sovereign AI company through June 2029
- September 2026 exit monthly run-rate revenue reached ₹751 Mn
- H1 FY27 EBITDA reached ₹2,894 Mn, which is 2.3x the full-year FY26 EBITDA
E2E Networks reported strong standalone Q2 FY27 results with revenue from operations reaching ₹223.76 Cr, up 410.8% YoY from ₹43.80 Cr in Q2 FY26 and up 42.7% QoQ from ₹156.76 Cr in Q1 FY27. Standalone net profit turned around sharply to ₹72.71 Cr compared to a net loss of ₹13.46 Cr in Q2 FY26. For H1 FY27, revenue reached ₹380.52 Cr compared to ₹79.92 Cr in H1 FY26, surpassing its entire TTM revenue base of ₹311 Cr. Additionally, L&T nominee director Ms. Shrimati Ambastha resigned, and Mr. Krishnan Mahesh from L&T was appointed as an Additional Director.
- Standalone Q2 FY27 revenue from operations grew 410.8% YoY to ₹22,376.43 Lakhs (₹223.76 Cr)
- Standalone PAT for Q2 FY27 surged to ₹7,270.69 Lakhs (₹72.71 Cr) versus a loss of ₹1,346.08 Lakhs in Q2 FY26
- Capital Work-in-Progress of ₹533.45 Cr as of March 31, 2026 was fully capitalized into PPE, which expanded to ₹1,485.66 Cr
- Cash and cash equivalents grew significantly to ₹599.41 Cr as of September 30, 2026, compared to ₹321.57 Cr as of March 31, 2026
- Basic EPS for the quarter stood at ₹3.54 compared to negative ₹0.67 in the previous year's quarter
E2E Networks reported strong standalone Q2 FY27 results with revenue from operations reaching ₹223.76 Cr, up 410.8% YoY from ₹43.80 Cr in Q2 FY26 and up 42.7% QoQ from ₹156.76 Cr in Q1 FY27. Standalone net profit turned around sharply to ₹72.71 Cr compared to a net loss of ₹13.46 Cr in Q2 FY26. For H1 FY27, revenue reached ₹380.52 Cr compared to ₹79.92 Cr in H1 FY26, surpassing its entire TTM revenue base of ₹311 Cr. Additionally, L&T nominee director Ms. Shrimati Ambastha resigned, and Mr. Krishnan Mahesh from L&T was appointed as an Additional Director.
- Standalone Q2 FY27 revenue from operations grew 410.8% YoY to ₹22,376.43 Lakhs (₹223.76 Cr)
- Standalone PAT for Q2 FY27 surged to ₹7,270.69 Lakhs (₹72.71 Cr) versus a loss of ₹1,346.08 Lakhs in Q2 FY26
- Capital Work-in-Progress of ₹533.45 Cr as of March 31, 2026 was fully capitalized into PPE, which expanded to ₹1,485.66 Cr
- Cash and cash equivalents grew significantly to ₹599.41 Cr as of September 30, 2026, compared to ₹321.57 Cr as of March 31, 2026
- Basic EPS for the quarter stood at ₹3.54 compared to negative ₹0.67 in the previous year's quarter
E2E Networks Limited has onboarded Anandamoy Roychowdhary as a Strategic Advisor. Roychowdhary currently serves as Managing Director at Crane Venture Partners, focusing on AI and deep-tech investments, and spent over a decade at Peak XV Partners (formerly Sequoia Capital India). The appointment comes as E2E rapidly scales its AI cloud infrastructure following its partnership with L&T. The disclosure does not mention any financial terms, equity grants, or advisory fee structure.
- Anandamoy Roychowdhary appointed as Strategic Advisor to the company
- Appointee spent over 10 years at Sequoia Capital India & Southeast Asia (now Peak XV Partners)
- Currently serves as Managing Director at Crane Venture Partners focusing on AI and deep-tech
- Financial terms and compensation for the advisory role not disclosed
E2E Networks announced the resignation of Ms. Shrimati Ambastha, Non-Executive Non-Independent Nominee Director representing strategic partner Larsen & Toubro Limited (which holds a 19% stake), effective October 12, 2026. L&T has simultaneously nominated Mr. Krishnan Mahesh for appointment to the board in her place, subject to upcoming board and Nomination and Remuneration Committee consideration. The change is administrative within L&T's board representation and indicates no shift in the operational partnership or shareholding.
- Resignation of Non-Executive Nominee Director Ms. Shrimati Ambastha effective October 12, 2026
- Mr. Krishnan Mahesh nominated by Larsen & Toubro Limited as the replacement Nominee Director
- Larsen & Toubro maintains strategic alignment following its 19% equity stake acquisition
- Proposed board appointment subject to Nomination and Remuneration Committee review at an ensuing meeting
E2E Networks announced the resignation of Ms. Shrimati Ambastha, Non-Executive Non-Independent Nominee Director representing strategic partner Larsen & Toubro Limited (which holds a 19% stake), effective October 12, 2026. L&T has simultaneously nominated Mr. Krishnan Mahesh for appointment to the board in her place, subject to upcoming board and Nomination and Remuneration Committee consideration. The change is administrative within L&T's board representation and indicates no shift in the operational partnership or shareholding.
- Resignation of Non-Executive Nominee Director Ms. Shrimati Ambastha effective October 12, 2026
- Mr. Krishnan Mahesh nominated by Larsen & Toubro Limited as the replacement Nominee Director
- Larsen & Toubro maintains strategic alignment following its 19% equity stake acquisition
- Proposed board appointment subject to Nomination and Remuneration Committee review at an ensuing meeting
E2E Networks announced the scrutinizer's report for its 17th AGM held on September 28, 2026, confirming that all 10 resolutions passed with the requisite majority. Shareholders approved raising funds through QIP, rights issue, FPO, or other mechanisms (99.999% in favor) and sanctioned an increase in borrowing powers (95.527% in favor). Additionally, members approved material modifications to related-party transactions with Larsen & Toubro Limited (99.998% in favor). Total voting capital stood at 20,55,64,890 equity shares with a face value of Rs 1 each.
- Resolution 7 to raise funds via QIP/Rights/FPO approved with 99.999% votes in favor (12,67,58,014 votes)
- Resolution 8 to increase borrowing limits passed with 95.527% votes in favor and 4.473% against (56,70,394 votes)
- Resolution 10 approving material modifications to related-party transactions with Larsen & Toubro Limited passed with 99.998% favor (9,21,95,311 votes)
- Total voting capital recorded at Rs 20,55,64,890 across 20,55,64,890 equity shares of Rs 1 face value as of cut-off date September 21, 2026
E2E Networks concluded its 17th Annual General Meeting on September 28, 2026. Key business items tabled included enabling resolutions for raising funds via QIP/Rights/FPO, an increase in borrowing powers, and material modifications to related-party transactions with Larsen & Toubro Limited (which holds a 19% stake). Additionally, resolutions covered executive remuneration revisions and creation of security on assets under Section 180(1)(a). Final voting results are awaited and will be declared separately.
- Held 17th AGM on September 28, 2026, commencing at 11:30 AM and concluding at 12:19 PM
- Tabled special resolution for fundraise via QIP, Rights, FPO, or other mechanisms
- Sought shareholder approval to increase borrowing limits and create security on company assets
- Proposed ordinary resolution for material modifications to Material Related Party Transactions with Larsen & Toubro Limited
E2E Networks has appointed Mr. Anand Ganapathy as Chief Revenue Officer (CRO) and Senior Management Personnel effective September 24, 2026. Ganapathy brings over 27 years of enterprise technology sales experience, having previously served as Director of Technology Sales at IBM India leading Enterprise AI, Hybrid Cloud, and Automation Software. The appointment comes as E2E Networks scales its AI cloud infrastructure following a ₹1,500 Cr capex plan and strategic partnership with L&T. In Q1 FY27 (ended June 2026), E2E generated ₹156.76 Cr in revenue with ₹43.88 Cr in net profit.
- Appointment of Mr. Anand Ganapathy as Chief Revenue Officer effective September 24, 2026
- Candidate brings over 27 years of enterprise technology sales, cloud, and AI solutions experience
- Previously served as Director, Technology Sales at IBM, leading Enterprise AI and Hybrid Cloud divisions
- Appointed to drive enterprise adoption, partner ecosystems, and large account expansions
E2E Networks Limited has issued a communication to shareholders whose email addresses are not registered with the company, RTA, or Depositories. The letter provides web links and QR codes to access the Annual Report for FY 2025-26 and the Notice for the 17th Annual General Meeting (AGM). The AGM is scheduled for September 28, 2026, at 11:30 AM IST via Video Conferencing. The cut-off date for identifying recipients without registered emails was August 28, 2026.
- 17th Annual General Meeting scheduled for September 28, 2026, at 11:30 AM IST via Video Conferencing
- Cut-off date for dispatch to unregistered email holders was August 28, 2026
- Sent pursuant to Regulation 30 and Regulation 36(1)(b) of SEBI LODR Regulations
- Reminded physical mode security holders to update KYC details and mandate electronic payment details
E2E Networks Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 as part of its Annual Report. The filing reports standalone CSR-applicable turnover of ₹24,558.01 lakhs (₹245.58 crore) and net worth of ₹1,67,600.75 lakhs (₹1,676.01 crore). Exports accounted for 36% of total revenue across 66 international countries and 31 Indian states. The company reported a total workforce of 213 employees (207 permanent) with a permanent employee turnover rate of 33.51% for the year.
- Exports contributed 36% to total revenue, serving customers across 66 international countries and 31 Indian states
- Reported FY26 standalone CSR turnover of ₹24,558.01 lakhs and net worth of ₹1,67,600.75 lakhs
- Total headcount stood at 213 (207 permanent employees), with an annual permanent employee turnover rate of 33.51%
- Women comprise 50% of the Board of Directors (4 out of 8 directors)
E2E Networks has issued the notice for its 17th Annual General Meeting (AGM) scheduled for September 28, 2026. Key special resolutions include the waiver of recovery of Rs 3,19,95,000 (Rs 3.20 Cr) in excess managerial remuneration paid to Executive Directors for FY 2025-26 under Section 197. Additionally, the company seeks shareholder approval to increase Managing Director Tarun Dua's annual remuneration from Rs 1.25 Cr to up to Rs 2.50 Cr effective September 1, 2026.
- 17th AGM scheduled for September 28, 2026, via Video Conferencing.
- Cut-off date for remote e-voting set for September 21, 2026; voting window runs September 25 to September 27, 2026.
- Special resolution seeking waiver of recovery for Rs 3,19,95,000 in excess managerial remuneration paid during FY 2025-26.
- Proposed hike in Managing Director Tarun Dua's annual remuneration from Rs 1.25 Cr to up to Rs 2.50 Cr through March 31, 2029.
- Proposed remuneration updates for Whole Time Directors: Ms. Srishti Baweja (up to Rs 1.50 Cr) and Ms. Megha Raheja (up to Rs 0.70 Cr).
E2E Networks has entered into a binding term sheet worth approximately Rs 1,000 crore (exclusive of taxes) with an Indian Sovereign AI company. The contract runs through June 2029 and covers NVIDIA Blackwell cloud GPUs and allied services. This agreement transitions capacity deployed in late May 2026 from a pay-as-you-go model to a multi-year committed revenue stream. Relative to its Q1 FY27 (Jun 2026) quarterly revenue of Rs 156.76 crore, this contract adds significant multi-year visibility averaging over Rs 330 crore annually.
- Signed binding term sheet with an aggregate contract value of approximately Rs 1,000 crore (exclusive of taxes).
- Contract tenure extends through June 2029, securing multi-year AI compute revenue.
- Covers provision of advanced NVIDIA Blackwell cloud GPUs and allied infrastructure services.
- Transitions GPU capacity deployed in late May 2026 from pay-as-you-go to a locked-in commitment.
E2E Networks has entered into a binding term sheet with an Indian Sovereign AI company for an aggregate contract value of approximately Rs 1,000 crore. The engagement entails provisioning high-performance computing infrastructure using NVIDIA Blackwell cloud GPUs and allied services. The contract is valid through June 2029, providing significant revenue visibility over the next ~3 years. Relative to its Jun 2026 quarterly revenue of Rs 156.76 crore, this multi-year deal represents a major scale-up in order backlog.
- Binding term sheet signed with an aggregate contract value of approx. Rs 1,000 crore (excl. taxes)
- Scope covers provisioning of NVIDIA Blackwell cloud GPUs and allied AI cloud services
- Contract duration is valid up to June 2029
- Awarded by a domestic Indian Sovereign AI entity with zero promoter/related-party interest
Financial Performance
Revenue Growth by Segment
The company operates in a single primary business segment (Cloud Infrastructure). Total revenue reached INR 164 Cr in FY2025, representing a 74% YoY growth from FY2024 and a 46% CAGR over FY2021-FY2025. Q2 FY2026 revenue was INR 43.8 Cr, up 21.3% QoQ.
Geographic Revenue Split
Not disclosed in available documents, though the company operates data centers in Noida, Chennai, and Mumbai and is expanding its presence in the SMB and mid-market segments across various geographies to diversify its revenue mix.
Profitability Margins
Operating Profit Margin (OPM) expanded to 58.95% in FY2025 from approximately 30% in FY2021 due to a lean cost structure. Net Profit Margin improved to 28.97% in FY2025 from 23.15% in FY2024. However, the company reported a net loss of INR 13.5 Cr in Q2 FY2026 due to high depreciation from newly deployed assets.
EBITDA Margin
EBITDA margin significantly improved to 41.1% in Q2 FY2026, up 1197 bps from 29% in Q1 FY2026. The management targets a long-term EBITDA margin of approximately 70% as volumes grow and scale benefits materialize.
Capital Expenditure
E2E has planned a sizeable capital expenditure of approximately INR 1,500 Cr over the near term to support capacity expansion. In Q2 FY2026, the company utilized INR 110.7 Cr for capex, following a total fund raise of INR 1,484.9 Cr through preferential issues.
Credit Rating & Borrowing
Assigned a long-term rating of [ICRA]A- (Stable) for INR 1,000 Cr bank facilities. Debt repayment obligations are INR 32 Cr for FY2026 and INR 64 Cr for FY2027. The Debt-Equity ratio improved drastically to 0.05 in FY2025 from 2.03 in FY2024 following a major equity fundraise.
Operational Drivers
Raw Materials
Specialized GPUs (Graphics Processing Units) from a large global chip maker (NVIDIA relationship implied) and Power/Electricity, which is a major component of data-center OPEX.
Import Sources
Not specifically disclosed, but involves global chip makers for GPU procurement and L&T data centers in Chennai for infrastructure.
Key Suppliers
Larsen & Toubro (L&T) for data center capacity; global chip makers for GPU hardware.
Capacity Expansion
Currently operates data centers in Noida, Chennai, and Mumbai. Expanding incremental GPU capacities in Chennai through L&T's data center facilities to leverage operational synergies.
Raw Material Costs
Not disclosed as a specific % of revenue, but the company targets a Gross Profit (GP) margin of 80% to 85% on newly deployed assets, indicating direct hardware/infrastructure costs are roughly 15-20%.
Manufacturing Efficiency
Capacity utilization is a key driver; rating upgrades are tied to healthy utilization of newly added GPU capacities to drive revenue and earnings.
Strategic Growth
Expected Growth Rate
46%
Growth Strategy
Growth will be achieved through a strategic partnership with L&T (19% stake) providing prioritized access to data center capacity, aggressive GPU capacity expansion (INR 1,500 Cr capex), and focusing on specialized AI cloud offerings to compete with global hyperscalers.
Products & Services
Infrastructure-as-a-Service (IaaS), GPU-based Cloud Computing, AI-specialized cloud offerings, and managed services for SMBs and mid-market enterprises.
Brand Portfolio
E2E Networks.
New Products/Services
Sovereign AI cloud and specialized AI offerings; however, there is currently no immediate visibility of revenue from the software side of the sovereign AI cloud.
Market Expansion
Expanding presence in the SMB and mid-market segments and targeting the Sovereign AI cloud market in India.
Market Share & Ranking
Not disclosed in available documents, though described as modest in relation to the overall size of the industry.
Strategic Alliances
Strategic partnership with Larsen & Toubro Limited (L&T), which holds a 19% equity stake as of November 2024.
External Factors
Industry Trends
The IaaS market is growing but concentrated among a few hyperscalers. There is a significant shift toward AI-driven cloud demand, with E2E positioning itself as a specialized provider for GPU-intensive workloads.
Competitive Landscape
Competes with global hyperscalers (AWS, Google Cloud, Microsoft Azure) who have larger balance sheets and broader product portfolios.
Competitive Moat
Moat is built on a decade-long operational track record, a strategic partnership with L&T for infrastructure access, and specialized expertise in GPU cloud which is harder for generalist providers to optimize as efficiently for AI workloads.
Macro Economic Sensitivity
Sensitive to the growth of the Indian digital public infrastructure and the overall demand for AI/ML compute power.
Consumer Behavior
Shift toward consumption-based contract models and increasing demand for localized (Sovereign) AI cloud solutions among Indian enterprises.
Geopolitical Risks
Data security, privacy, and responsible use of platforms are identified as social/reputational risks; regulatory developments in AI and data sovereignty impact the 'Sovereign AI' strategy.
Regulatory & Governance
Industry Regulations
Compliance with Indian Accounting Standards (Ind AS) and SEBI regulations; proactive tracking of regulatory developments in data security and AI to maintain 'trusted partner' status.
Risk Analysis
Key Uncertainties
Utilization rates of newly added GPU capacities (INR 1,500 Cr investment) and the ability to scale software revenue for the Sovereign AI cloud.
Geographic Concentration Risk
Operations are concentrated in India, specifically Noida, Chennai, and Mumbai data center hubs.
Third Party Dependencies
High dependency on L&T for data center capacity and a 'large global chip maker' for GPU supply.
Technology Obsolescence Risk
High risk due to the rapid evolution of AI hardware; requires continuous capex to stay relevant with the latest GPU generations.
Credit & Counterparty Risk
Receivables quality is managed through consumption-based models, but concentration in SMB/mid-market segments may increase credit risk during economic downturns.
