This article first appeared on GuruFocus .
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Operational Revenue:INR700 million, growth of 68.3% year-on-year and 59.8% quarter-on-quarter.
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EBITDA:INR396 million, up by 60.9% year-on-year and 120.2% quarter-on-quarter.
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EBITDA Margin:56.6%.
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PAT Loss:INR57 million, improved by 58% quarter-on-quarter.
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Depreciation:Increased by INR476 million due to large GPU deployment.
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Total Expenses:INR304 million, aligned with business expansion.
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Monthly Revenue Run Rate:INR280 million in December 2025.
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Release Date: January 16, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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E2E Networks Ltd ( NSE:E2E ) reported a robust revenue growth of 68.3% year-on-year and 59.8% quarter-on-quarter, driven by higher capacity utilization and increased enterprise workloads.
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The company completed the acquisition of Jarvis Lab assets, positioning itself to scale up in the global market.
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E2E Networks Ltd ( NSE:E2E ) has made substantial progress on its Monthly Recurring Revenue (MRR) target, achieving 70-80% of its goal for March 2026.
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The company has strengthened partnerships, notably with L&T, leading to successful enterprise customer conversions.
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E2E Networks Ltd ( NSE:E2E ) continues to expand its Blackwell capacity, with new operations set to commence from its Chennai facility, enhancing its infrastructure capabilities.
Negative Points
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The company reported a PAT loss of INR57 million, primarily due to higher depreciation and increased finance costs from infrastructure expansion.
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There was a major outage in the Mumbai servers, raising concerns about cloud reliability and potential client loss.
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The EBITDA margin, although strong at 56.6%, has not yet reached the anticipated 70% target.
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The India AI mission contribution to MRR was muted in the last quarter, indicating slower-than-expected ramp-up.
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E2E Networks Ltd ( NSE:E2E ) faces challenges in providing specific guidance on future CapEx and MRR figures, reflecting uncertainty in market conditions.
Q & A Highlights
Q: Could you please help us understand E2E's approach to cloud reliability and how you compensate customers for any downtime or service disruption? A: We compensate customers based on the SLA in case of service disruptions. We provide self-service public cloud options with redundancy measures across multiple locations, allowing customers to implement disaster recovery scenarios. Our team is always ready to support customers to the best of their ability.
Q: What is the expected timeline for Blackwell to go live, and when can we expect the revenue to kick in? A: We expect to go live with Blackwell before the end of Q4. We continue to expand Blackwell capacity and anticipate seeing revenue traction soon after deployment.
Q: How is the payment cycle with respect to the India AI mission, and have they started paying for services received? A: The India AI Mission has shifted its payment cycle from quarterly to monthly, which is beneficial for us. We are working on finalizing the details of how these payment cycles will work.
Q: Can you provide guidance on when we might achieve a 70% EBITDA margin? A: We have expanded EBITDA margins quarter-on-quarter. Achieving a 70% margin depends on establishing the necessary scale, which we are working towards.
Q: What is the utilization rate this quarter, and what are the expectations for the new Blackwell GPUs? A: As of December end, utilization was around 60% to 65%. We expect the new Blackwell GPUs to generate approximately INR250 crores in ARR, with international market rates for these GPUs being around $3 to $4 per hour for longer-term contracts.
Q: How do you see the demand for GPUs, particularly in India, excluding the India AI Mission? A: We are positive about the demand both globally and in India. We have seen increased demand for capacity, and we expect this trend to continue, especially with the rise of voice agents requiring more GPUs.
Q: What are your thoughts on adopting ASICs within your infrastructure if the industry trends in that direction? A: Accelerated computing is here to stay, and we will continue to focus on what our customers demand. Currently, NVIDIA remains a significant part of our portfolio, but we are open to considering other vendors if customer demand shifts.
Q: What is the potential revenue from the 1,024 Blackwell GPUs, and how does it align with your current capacity? A: We expect the 1,024 Blackwell GPUs to generate around INR250 crores in ARR. Our current utilization is around 60% to 65%, and we aim to increase this as we expand our capacity.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
