E2E Networks Q2 FY27 results: net profit ₹72.70 crore

How did E2E Networks perform in Q2 FY27?

E2E Networks reported consolidated revenue of ₹223.76 crore for the quarter ended 30 September 2026, up 42.7% from ₹156.76 crore in Q1 FY27. Other income was ₹9.93 crore and total income was ₹233.69 crore, against ₹168.18 crore in the previous quarter. Total expenses rose to ₹136.57 crore from ₹109.55 crore.

EBITDA for the quarter was ₹171.46 crore, up 45.4% from ₹117.90 crore in Q1 FY27, with the EBITDA margin widening by 1.4 percentage points to 76.6% from 75.2%. Profit before tax was ₹97.13 crore and tax expense was ₹24.42 crore, giving a net profit of ₹72.70 crore against ₹43.88 crore in the previous quarter. Basic EPS was ₹3.54, compared with ₹2.14 in Q1 FY27.

On a standalone basis, revenue for the quarter was ₹223.76 crore and profit after tax was ₹72.71 crore, with profit before tax of ₹97.13 crore. The standalone result for the year-ago quarter included a loss of ₹13.46 crore. The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026 on 16 October 2026.

What do the balance sheet and cash flow show?

As at 30 September 2026, E2E Networks reported total assets of ₹2,640.65 crore, total equity of ₹1,804.09 crore, borrowings of ₹450.38 crore and cash and cash equivalents of ₹599.42 crore. Trade receivables stood at ₹28.53 crore and trade payables at ₹15.20 crore. The company reported no inventories and no exceptional item for the quarter.

For the first half of FY27, operating cash flow was ₹396.49 crore, investing cash flow was negative ₹459.61 crore and financing cash flow was ₹340.97 crore. Capital expenditure during the period was ₹419.60 crore. Cash flow figures for the year-ago period were not provided in the filings.

What else did the company announce?

E2E Networks filed an investor presentation alongside the results on 16 October 2026. It set out the quarter's financial performance, a binding term sheet worth ~₹1,000 crore excluding taxes with an India-based sovereign AI company for NVIDIA Blackwell cloud GPUs and allied services valid up to June 2029, and the addition of VPC Connect on the TIR AI/ML Platform. The presentation also noted that the company operates ~5,100 cloud GPUs live, including 1,024 NVIDIA B200s.

The board approved the appointment of Krishnan Mahesh, nominee of Larsen & Toubro Limited, as an Additional Director designated as a Non-Executive Non-Independent Director with effect from 16 October 2026, subject to shareholder approval. The board took note of the resignation of Shrimati Ambastha, also the L&T nominee, with effect from 12 October 2026. The company separately filed that it had onboarded Anandamoy Roychowdhary as Strategic Advisor.

The board also took note of fines of ₹10,000 each, plus applicable taxes, imposed separately by NSE and BSE for failing to submit prior intimation of the board meeting held on 31 August 2026. The company said it had paid the fines and applicable taxes, and advised management to ensure strict adherence to prescribed timelines under the SEBI Listing Regulations to avoid recurrence.

What did E2E Networks' management say?

Management said the ~₹1,000 crore sovereign AI contract for Blackwell GPUs gives revenue visibility through 2029, and that with shareholder approval for growth capital in place the company would remain focused on aggressive and judicious capacity expansion to meet demand for AI compute in India. On the earnings call, management confirmed the next deployment of 1,024 B200 GPUs was expected to go live in Q3 FY27. It did not give forward guidance on capex, monthly recurring revenue, pricing or utilisation.

Management reiterated that the business is structurally a 70% plus EBITDA margin franchise over the medium-to-long term and maintained that guidance stance. International revenue was 20-25% of the quarter, customers under the India AI Mission contributed 13-15%, and operating costs were about ₹18 crore. Tarun Dua, Managing Director, said: “We do not give speculative capex guidance. We prefer to inform everyone when we have sufficiently fructified and solidified our deployment plan.”

On the market opportunity, Tarun Dua said: “Any particular niche you take in a $1 trillion market is like a niche which is worth like maybe $10 billion or $20 billion or maybe $50 billion. So, I think we feel very, very comfortable in this market. It's a vast blue ocean. There is no red ocean today that we need to worry about competition today.” He added: “This has been another strong quarter for E2E Networks, where we have continued executing similar to the previous quarter. And this is still day zero of AI for us, as far as we can see.” Risks flagged included heavy research and development on the own Sovereign AI platform holding back GPU capacity, capex pacing without a fixed timeline, and dependence on NVIDIA's B200, B300 and Vera Rubin roadmap.

How did E2E Networks shares react?

The stock was up 6.7% five minutes after the filing appeared in the market, up 3.1% after 15 minutes and down 1.2% after 30 minutes. On the reaction day, the stock closed 1.8% lower from its previous close of ₹710.90. By the next day's close it was down 7.1% from that pre-results close, and by five sessions later it was down 16.4%.

Over the same closes, the median move of other IT Enabled Services stocks was up 1.0% on the reaction day, down 0.8% by the next day's close and down 6.4% by five sessions. The Nifty Microcap 250 was up 0.7% on the reaction day, down 1.0% by the next day's close and down 6.4% by five sessions. E2E Networks therefore moved 2.8 percentage points below the industry median on the reaction day, 6.4 percentage points below it by the next day's close and 10.0 percentage points below it by five sessions.

Earlier results days produced mixed reaction-day moves. The stock was up 5.0% on 21 July 2026, up 5.1% on 20 April 2026 and up 9.5% on 15 January 2026. It fell 3.3% on 11 November 2025, 5.4% on 22 July 2025, 5.1% on 17 April 2025, 5.6% on 22 January 2025 and 5.9% on 21 October 2024.

How did other IT Enabled Services companies do?

A total of 29 other IT Enabled Services companies were compared for this quarter, with a median revenue growth of 22.5%. Of the peers compared on profit, 20 recorded higher profit, out of 26 companies assessed. E2E Networks grew revenue faster than the peer median of 22.5%.