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    E2E Networks

    E2E
    Information Technology·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

    5

    • 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

    3

    • 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

    Metrics

    8

    Periods

    3

    Headline

    1
    • GPU Utilization (March 2026)
      80%

    Q4 FY26

    4
    • Revenue
      956 Mn
      YoY+1.9%QoQ+37%
    • EBITDA
      581 Mn
    • EBITDA Margin
      60.7%
    • PAT
      64 Mn

    FY26

    3
    • Revenue
      2,456 Mn
      YoY+50%
    • EBITDA
      1,263 Mn
      YoY+30.6%
    • PAT
      -156 Mn

    Order Book

    high confidence

    Total Value

    ₹ 374 million

    as of 2026-03-31

    quantified

    Inflow this qtr

    ₹ 374 million

    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

    2
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    Guidance & targets

    4
    CategoryTargetPriority
    Capacity
    Blackwell B200 GPU Cluster 1 Deployment
    1024 GPUs live
    		High
    Capacity
    Blackwell B200 GPU Cluster 2 Deployment
    Another 1024 GPUs deployed
    		High
    Capacity
    Total GPU Capacity (FY27 minimum)
    6,000 capacity
    		Medium
    Profitability
    Reported Profitability
    improving
    		Medium

    Blackwell B200 1024 Cluster 1 Go-Live

    next quarter
    CurrentExpected mid-May 2026
    TargetConfirmation 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.

    How to verify

    detailed_narrative

    Risks & concerns

    3
    RiskSeverity

    Global Supply Chain Impacts on GPU Deployment

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

    medium

    Lumpiness of Monthly Recurring Revenue (MRR)

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

    low

    Rapidly Changing Market Conditions

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

    medium

    Q&A highlights

    8

    “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

    3 min read7 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    07

    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.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.