This article first appeared on GuruFocus .
Release Date: November 11, 2025
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 21% increase in revenue for the quarter ended September 30, 2025, reaching 43.8 crore.
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The company's margins improved significantly to 41% from 29% in the previous quarter.
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E2E Networks Ltd ( NSE:E2E ) received two large orders from the India AI mission, which are expected to help meet their monthly run rate target earlier than anticipated.
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The company has built a strong engineering team and a self-service platform for cloud infrastructure, enhancing its service offerings.
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E2E Networks Ltd ( NSE:E2E ) is in advanced stages of procuring 2048 Blackwell GPUs, funded through internal approvals and institutional debt, indicating strong growth plans.
Negative Points
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The company reported a net loss of 13.5 crore for the quarter, highlighting ongoing financial challenges.
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There is a decline in other income due to the utilization of deposits for CapEx, impacting overall financial performance.
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E2E Networks Ltd ( NSE:E2E ) faces potential risks related to the rapid advancement of technology, which could affect the economic life of their GPUs.
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The company does not own any data centers, relying on third-party providers, which may limit control over infrastructure.
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There is uncertainty regarding the margin profile of new projects, as the company has not yet determined the profitability of recent large orders.
Q & A Highlights
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Warning! GuruFocus has detected 4 Warning Signs with NSE:E2E.
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Q: What is the CapEx plan for this year and the next two years, especially in terms of GPUs? A: We plan to acquire about 2048 Blackwell GPUs immediately. Depending on market demand, we might double this number to 4096 by March 2026. The pricing for these GPUs can vary, so it's challenging to provide a precise CapEx figure. Our strategy is to build sufficient capacity to meet demand without losing opportunities. Managing Director
Q: Are the data centers you operate owned by E2E Networks? A: No, we do not own any data centers. We operate through third-party data centers. Managing Director
Q: Can you provide insights into the margin profile for the recent large orders from India AI Mission? A: It's too early to comment on the exact margin profile as it will depend on the implementation and specific requirements from India AI Mission and its customers. However, we aim to maintain a margin close to our guidance of around 70% overall. Managing Director
Q: What is the useful life of your GPUs for depreciation purposes? A: For depreciation, we consider a useful life of six years for servers, including GPUs. However, practically, GPUs and CPUs have a useful life of about 7-8 years. CFO
Q: How does E2E Networks plan to handle potential obsolescence in technology, given the rapid advancements? A: We have been in the compute business for 16 years and have navigated multiple technology cycles. Our approach is to manage investments prudently to mitigate obsolescence risks. Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
