A year ago E2E Networks was a loss-making cloud company with quarterly revenue of about ₹44 crore. Now it is selling GPU time to AI builders at a pace that has changed the shape of its income statement. The E2E Networks Q2 results, approved by the board on October 16, 2026, show consolidated revenue from operations of ₹223.76 crore for the July-September quarter, up 410.8% from ₹43.80 crore a year earlier, and a net profit of ₹72.70 crore against a loss of ₹13.46 crore.
That is a big swing for any company. For one that sells rented computing power, it also tells us a lot about how quickly fresh capacity is getting used.
In this article
E2E Networks Q2 results in numbers
The figures below are consolidated and come from the board meeting outcome filed with BSE, which the company reports in lakh. We have converted them to crore. The sequential growth rates are our own arithmetic.
- Revenue from operations: ₹223.76 crore, up 410.8% year-on-year and about 42.7% from ₹156.76 crore in the June quarter.
- Profit before tax: ₹97.13 crore, against a loss of ₹18.49 crore a year ago and a profit of ₹58.63 crore in the June quarter.
- Net profit: ₹72.70 crore, up about 65.7% from ₹43.88 crore in the June quarter.
- Diluted EPS: ₹3.48 for the quarter (not annualised), against ₹2.10 in the June quarter.
- First half (April-September): revenue of ₹380.52 crore against ₹79.92 crore, and net profit of ₹116.59 crore against a loss of ₹16.30 crore.
One detail jumps out. Revenue for the first half of FY27 is already well above the ₹245.58 crore E2E booked for the whole of FY26.
The cost of buying GPUs shows up below the line
This is a capital-heavy business, and the expense lines show it. Depreciation and amortisation rose to ₹73.97 crore from ₹42.80 crore a year ago, an increase of about 72.8%. That single line ate roughly a third of the quarter’s revenue. Finance costs went up to ₹10.30 crore from ₹2.00 crore, which suggests more of the fleet is now funded through borrowings or leases.
The tax line is also worth a look. The entire ₹24.42 crore tax charge this quarter is deferred tax, with no current tax. Our explainer on deferred tax in results covers why that happens when a company has past losses and fast depreciation.
In its press release, the company put EBITDA at ₹171.5 crore (₹1,715 million), a 76.6% margin. It said growth came from Blackwell GPUs, better utilisation and higher average realisation across the fleet. Treat that EBITDA as the company’s own measure. Our piece on operating profit vs net profit explains why the gap between EBITDA and net profit is so wide in a business like this.
A ₹1,000 crore contract and a board change
The press release says E2E signed a binding term sheet worth about ₹1,000 crore, excluding taxes, with an Indian sovereign AI company. It covers NVIDIA Blackwell cloud GPUs and allied services, and runs through June 2029. The company also put its September exit revenue at ₹75.1 crore (₹751 million) for the month.
The board filing records a change in Larsen & Toubro’s nominee seat. Shrimati Ambastha resigned with effect from October 12, and Krishnan Mahesh was appointed an additional non-executive director, as L&T’s nominee, from October 16.
What we’d track from here
Three things. First, whether revenue keeps pace with the depreciation that each new batch of GPUs brings. Second, how the term sheet turns into billed revenue over the next few quarters. Third, how much more debt goes into the expansion. For a framework to read filings like this one, see our guide on how to analyse quarterly results.
Disclaimer: This article is for information only and is not investment advice or a recommendation to buy or sell any security. Figures are from the company’s exchange filing and press release linked above. Consult a SEBI-registered investment adviser before making investment decisions.
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