E2E Networks Limited — Q4 FY26 earnings call

Call held 20 Apr 2026

Management summary

E2E Networks reported a strong Q4 FY26 with significant revenue and EBITDA growth, and a return to profitability, driven by high GPU utilization. Full-year revenue also saw robust growth, though PAT was negative due to depreciation from heavy infrastructure investments. The company is actively expanding its GPU capacity, exploring asset-light models, and focusing on high-value AI tokens, despite facing global supply chain delays for new deployments.

Highlights

  • Q4 FY26 Revenue grew significantly to INR 956 million, marking a 186% YoY and 37% QoQ increase.

  • EBITDA margin expanded to 60.7% in Q4 FY26, with EBITDA reaching INR 581 million.

  • Profit After Tax (PAT) turned positive in Q4 FY26 at INR 64 million, a swing from a loss of INR 75 million in Q3.

  • Full-year FY26 Revenue increased by 50% YoY to INR 2,456 million, and EBITDA grew by 30.6% to INR 1,263 million.

  • Achieved 80%+ GPU utilization across the infrastructure in March 2026, demonstrating strong demand and operational efficiency.

Concerns

  • Reported a full-year FY26 PAT loss of INR 156 million, primarily driven by depreciation on GPU infrastructure investments.

  • Blackwell GPU deployment faced delays due to global supply chain impacts, with the first cluster now expected to go live mid-May 2026.

  • Management noted that MRR (Monthly Recurring Revenue) can be lumpy, though they expect this to decrease as the GPU base grows.

Key financials

3 periods

Headline

  • GPU Utilization (March 2026)
    80%

Q4 FY26

  • Revenue
    956 Mn
    YoY +186% QoQ +37%
  • EBITDA
    581 Mn
  • EBITDA Margin
    60.7%
  • PAT
    64 Mn

FY26

  • Revenue
    2,456 Mn
    YoY +50%
  • EBITDA
    1,263 Mn
    YoY +30.6%
  • PAT
    -156 Mn

What they filed

Q1 FY27: revenue up 336.1%, net profit up 1566.7% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue48 42 33 36 44 −8%70 +67%96 +191%157 +336%
EBITDA31 25 13 11 18 −42%40 +60%58 +346%118 +973%
Net profit12 12 14 -3 -13 −208%-6 −150%6 −57%44 +1567%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹374 Mn

as of 2026-03-31 quantified

Inflow this quarter

₹374 Mn

Execution

For larger clusters, 6 months to 1 year visibility; for even larger customers, 2-3 years visibility.

The March MRR of INR 374 million reflects an increase in overall utilization. Management notes that the base is still small for detailed segment splits, but expects lumpiness to decrease as the GPU base grows. They are interested in long-term contracts but cannot provide a fixed percentage yet.

Source: Q&A

Capital allocation

medium confidence
  • Capex Capex disclosed
    • GPU infrastructure investment (B200, Blackwell, Hopper generations)
    FY 2026, revenue stands at INR2,456 million... EBITDA crossed INR1,263 million... PAT loss of INR156 million, which is driven entirely by the depreciation on our GPU infrastructure investment.
  • Debt Debt disclosed
    We have explored equity, we have explored debt. Now we are also exploring a variety of private credit asset-light models to bring in rapid expansion to our GPU capabilities.

Guidance & targets

Capacity

  • Blackwell B200 GPU Cluster 1 Deployment Capacity · mid-May 2026 · High confidence 1024 GPUs live
    We expect our Cluster 1 B200 1024 to go live somewhere in the mid-May, and in a couple of months, we are expecting to be able to deploy another cluster of 1024 which has already been planned.

    — Tarun Dua

  • Blackwell B200 GPU Cluster 2 Deployment Capacity · a couple of months after mid-May 2026 · High confidence Another 1024 GPUs deployed

    — Tarun Dua

  • Total GPU Capacity (FY27 minimum) Capacity · by FY27 end · Medium confidence 6,000 capacity
    I would not want to place a limiting number over there, but you could say that that is the minimum number.

    — Tarun Dua

Profitability

  • Reported Profitability Profitability · ongoing · Medium confidence improving
    As utilization continues to ramp up, revenue will progressively outpace depreciation, improving reported profitability.

    — Nitin Jain

What to watch in Q1 FY27

Blackwell B200 1024 Cluster 1 Go-Live

next quarter
Current Expected mid-May 2026
Target Confirmation of go-live and operational status

Why it matters

This is the first major deployment of the new generation of GPUs, crucial for capacity expansion and revenue generation.

We expect our Cluster 1 B200 1024 to go live somewhere in the mid-May, and in a couple of months, we are expecting to be able to deploy another cluster of 1024 which has already been planned.

Risks & concerns

  • Global Supply Chain Impacts on GPU Deployment

    medium

    Delays in Blackwell GPU deployment due to global supply chain issues, with the first cluster now expected mid-May 2026.

    Management acknowledged

  • Rapidly Changing Market Conditions

    medium

    The AI infrastructure market is changing rapidly week-on-week, making long-term numerical guidance challenging.

    Management acknowledged

  • Lumpiness of Monthly Recurring Revenue (MRR)

    low

    MRR can be lumpy, but management expects this to decrease as the overall GPU base and long-term contracts grow.

    Management acknowledged

Q&A highlights

4 direct, 1 evasive
Asset-light partnership with L&T and margin accretion Partial
First of all, of course, we have a MOU with L&T to monetize the GPU infrastructure that they are building. That is still in exploratory stage. As the GPUs get deployed and we start the work into monetization, as we know more and more, we will talk more and more about that. That being said, this is not an exclusive arrangement. We will continue to operate at an arm's length with L&T and we will continue to explore other partnerships of similar or different nature as well. ... It is too early to say, Bhavya, how would the numbers look like. Obviously, it is very, very early to say how those things would look like. Unless the structure is finalized see, obviously we all work for a profit, so we will not do anything which does not earn us the profit.

Analyst sought clarity on a new strategic partnership and its financial impact, but management indicated it's too early for specifics, highlighting the exploratory nature.

Asked by Bhavya Gandhi

MRR guidance for the next year Evasive
Yes, so we will continue to focus on growth just the same as rest of the market is growing. We want to be very, very growth-focused. That being said, I think it would not do justice to do a MRR guidance for one year in the future. The future is changing very, very rapidly week on week. It was obviously impossible to give a week-on-week guidance on MRR and it would be better to watch it quarter-on-quarter than predicting four quarters in advance.

Management declined to provide forward MRR guidance, citing the rapidly changing market, which suggests limited long-term visibility or a preference for short-term agility.

Asked by Bhavya Gandhi

Asset turn for capex and business model focus Partial
We want to get the framing away from things like asset turns. Essentially, don't look at us as an asset monetization business. Look at us as a technology business. I think there was a recent conversation around the tokens becoming more valuable. The same set of tokens that were being generated by say open source Al or closed source AI, what used to produce say X amount of value, we are increasingly seeing that as the accuracy, efficiency, and capabilities of Al increases, then the generated tokens also become more valuable for businesses who have figured out how to utilize those tokens in their business.

Management clarified their strategic shift from viewing themselves as an asset monetization business to a technology business focused on the value generated by AI tokens, indicating a different approach to ROI.

Asked by Bhavya Gandhi

Delay in Blackwell GPU deployment Direct
Global supply chains have been impacted somewhat. The delays are always for want of a horseshoe nail. Kind of we have been working very diligently towards making sure that everything is planned out and everything gets delivered on time, but you cannot control every single component. Sometimes some components can be the most critical ones from the point of view of getting the entire deployment done. We are targeting the first deployment to go live before mid of May. Keeping our fingers crossed over there.

Analyst inquired about the delay in a key new technology deployment, and management attributed it to global supply chain issues, providing a revised timeline.

Asked by Keshav

Increase in employee costs Direct
See as we grow, we kind of start figuring out more and more interesting problems that need to be solved in this space. Obviously, our goal is to go towards what you call higher value tokens and that obviously requires the application of quite a high level of talent. As we obviously grow, the base effect would still be there. But on the other hand, we want to maintain a balance of not losing out on future opportunities because we did not invest today on what was required 12 months later or 18 months later or two years later.

Management explained the rise in employee costs as a strategic investment in high-level talent necessary to pursue higher-value AI opportunities and future growth.

Asked by Keshav

GPU rental pricing pressure from new architectures and competition Direct
See, I think broadly the trend today is that there are not enough GPUs in the world that people want to buy and deploy. So that is the current trend. Now, whether this trend remains for how long is hard to predict, but the broad secular trend has been there that basically there are Al believers and there were Al non-believers. ... I do not think the demand environment in the foreseeable future is going to be changing negatively for long periods of time. I do not think that is going to be the case from the visibility we have today. We do not see that there is any negative pressure on the pricing today. So, in fact, there are I think good set of tailwinds which are slowly inching up the prices rather than a decrease in pricing.

Analyst probed on potential pricing pressure for GPUs, but management confidently stated strong demand and tailwinds are leading to stable or even increasing prices, allaying concerns about competition or new tech.

Asked by Varun Gandhi

Historical GPU rental prices (H200 vs. 2 years ago) Partial
See, I think taking the case of 2 years ago is slightly anomalous from the point of view that I think that was one particular year in which the GPU demand went from say 1 to 10. I think that capability driven shortages where the capability to print that many GPUs had to be built very rapidly. That created a local maxima of pricing, but broadly we are seeing that there is stability in the pricing for GPUs over an extended periods of time.

Analyst questioned if current H200 prices were significantly lower than 2 years ago. Management clarified that the earlier period was an anomaly due to rapid demand surge and supply shortages, implying current pricing is more stable.

Asked by Varun Gandhi

Guidance approach and current macro concerns Direct
Yes, yes. We are not worried about like whatever numbers we give whether we will be able to meet them or not. I think it is like we do not want to give an underwhelming number without first exploring like over week after week over next 52 weeks what we are capable of doing. So it will become sort of like a limiter for ourselves to say that, okay, we are only to meet this number. That is why we are not putting a number today.

Analyst sought to confirm if the lack of specific guidance was due to macro concerns. Management clarified it's to avoid limiting their potential and to maintain flexibility in a fast-evolving market.

Asked by Abhishek

3 min read 7 chapters

Detailed narrative

Strong Q4 and FY26 Financial Performance

E2E Networks delivered a robust Q4 FY26, with revenue reaching INR 956 million, marking an impressive 186% year-on-year and 37% quarter-on-quarter growth. EBITDA stood at INR 581 million, pushing the EBITDA margin to 60.7%. The company also achieved a positive Profit After Tax (PAT) of INR 64 million in Q4, a significant turnaround from a loss in the previous quarter. For the full fiscal year 2026, revenue increased by 50% YoY to INR 2,456 million, and EBITDA grew by 30.6% to INR 1,263 million, although the company reported a full-year PAT loss of INR 156 million due to depreciation from GPU infrastructure investments.

Aggressive GPU Infrastructure Expansion

The company is rapidly expanding its GPU infrastructure, with plans to deploy 2,048 B200 GPUs plus spares in the current financial year. The first cluster of 1024 B200 GPUs is expected to go live by mid-May 2026, with another 1024-GPU cluster planned for deployment a couple of months later. E2E Networks is also preparing for the Blackwell generation of GPUs and has plans for B300, GB300, and Vera Rubin deployments, aiming for a minimum capacity of 6,000 by the end of FY27. This expansion is crucial for meeting the surging demand for AI infrastructure.

Strategic Focus on AI and High-Value Tokens

Management emphasized a strategic shift from an 'asset monetization business' to a 'technology business' focused on the value derived from AI tokens. They believe the future is AI, and as AI capabilities increase, the value of generated tokens becomes more significant for businesses. This approach involves building deep in-house capabilities across the entire technology stack to enable customers to extract higher value from their AI workloads, rather than solely focusing on infrastructure rental.

Robust Market Demand and Stable GPU Pricing

E2E Networks reported strong demand for GPUs, both domestically in India and globally, with utilization rates exceeding 80% in March 2026. Despite rapid technological advancements and increasing competition, management does not foresee negative pressure on GPU rental prices. They noted that current market conditions, characterized by insufficient GPU supply, are leading to stable or even slightly increasing prices, contrasting with an 'anomalous' period two years ago when prices surged due to extreme shortages.

Exploration of Asset-Light Financing Models

To fund its aggressive GPU capacity expansion, E2E Networks is exploring various financing models, including equity, debt, and private credit asset-light models. The company has an MOU with L&T to monetize GPU infrastructure, which is in an exploratory stage and not exclusive. This strategy aims to bring in rapid expansion to GPU capabilities without solely relying on its own balance sheet, enabling faster growth and broader market reach.

Talent Acquisition and Employee Cost Increase

The increase in employee costs during the quarter was attributed to the need for high-level talent. Management stated that as the company grows and tackles more complex problems related to 'higher value tokens,' it requires specialized skills. This investment in talent is seen as crucial for building in-house capabilities across the technology stack and for capitalizing on future opportunities in the rapidly evolving AI landscape.

International Revenue Contribution

For Q4 FY26, international revenue contributed approximately 35% to 37% of the total revenue. This indicates a significant global footprint and diversification of revenue streams beyond the domestic market, aligning with the company's strategy to support both Indian and global infrastructure needs.

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