This article first appeared on GuruFocus .
Release Date: April 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
E2E Networks Ltd ( NSE:E2E ) achieved a significant revenue growth of 186% year-on-year and 37% quarter-on-quarter, reaching $956 million in Q4 FY26.
-
The company successfully expanded its EBITDA margin to 60.7%, demonstrating strong operational efficiency.
-
E2E Networks Ltd ( NSE:E2E ) turned a profit before tax of $86 million in Q4, a significant improvement from a loss of $75 million in Q3.
-
The company has demonstrated its capability to scale AI infrastructure rapidly and achieve high utilization across GPU clusters.
-
E2E Networks Ltd ( NSE:E2E ) is well-positioned to capture future growth opportunities in AI infrastructure, with plans to deploy additional GPU clusters and explore various financing models for expansion.
Negative Points
-
Despite revenue growth, E2E Networks Ltd ( NSE:E2E ) reported a net loss of $156 million for FY26, primarily due to depreciation on GPU infrastructure investments.
-
The company faces challenges in supply chain management, which has caused delays in deploying new GPU clusters.
-
There is uncertainty regarding the financial impact of the asset-light partnership with L&T, as the arrangement is still in the exploratory stage.
-
E2E Networks Ltd ( NSE:E2E ) has not provided specific guidance on monthly recurring revenue (MRR) due to rapidly changing market conditions.
-
The company acknowledges the potential for lumpiness in revenue due to the small base of GPUs and the dynamic nature of customer demand.
Q & A Highlights
-
Warning! GuruFocus has detected 3 Warning Signs with NSE:E2E.
-
Is NSE:E2E fairly valued? Test your thesis with our free DCF calculator.
Q: Could you provide details on the asset-light model partnership with L&T? A: We have an MOU with L&T to monetize GPU infrastructure, which is still in the exploratory stage. This is not an exclusive arrangement, and we will continue to explore other partnerships. The structure is not finalized, so it's early to discuss numbers, but we aim for profitability in any partnership. - Tarun Lua, Managing Director
Q: Can you provide guidance on Monthly Recurring Revenue (MRR) for the next year? A: We are focused on growth and prefer not to provide a one-year MRR guidance due to the rapidly changing market. It is better to assess quarter-on-quarter rather than predict four quarters in advance. - Tarun Lua, Managing Director
Q: What is the current GPU utilization rate? A: Across our entire infrastructure, including GPUs, we are looking at over 80% utilization, particularly in March. There is elasticity in cost, allowing us to increase utilization further. - Tarun Lua, Managing Director
Q: How is the demand for GPUs in the domestic market compared to globally? A: Demand is strong both in India and globally. We prioritize India first but are happy to fulfill global demand as well. The demand environment is positive, and we do not foresee negative pressure on pricing. - Tarun Lua, Managing Director
Q: Are there any pressures on GPU rental prices due to technological advancements or competition? A: Currently, there is strong demand for GPUs, and we do not see negative pressure on pricing. Technological advancements like the Rubin architecture may impact future pricing, but existing GPUs continue to have strong demand. - Tarun Lua, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
