E2E Networks Q2 FY27 Results (NSE: E2E)

16 Oct 2026 · Analysis by Alpha Inflection

Signal: Steady quarter

The read

The AI-cloud scale-up is still accelerating: Q2 revenue rose 411% YoY and 42.7% QoQ to ₹2,238 Mn, while EBITDA margin expanded 141bps QoQ to 76.6% after 61.0% in Q4FY26 and 75.0% in Q1FY27; Blackwell GPUs, higher utilisation and realisation are driving the inflection, although depreciation reached ₹740 Mn and the ₹1,000 Cr contract still requires capacity execution through 2029.

P&L walk

Standalone Q2 revenue reached ₹2,238 Mn, up 411% YoY and 42.7% QoQ, while EBITDA grew 45.4% QoQ to ₹1,715 Mn and margin expanded to 76.6%; Blackwell GPU contribution, better utilisation and higher average realisation were the stated drivers, partly offset by depreciation of ₹740 Mn.

Key positives

• Revenue reached ₹2,238 Mn, up 411% YoY and 42.7% QoQ, with the filing attributing growth to Blackwell GPUs, better utilisation and higher average realisation.
• EBITDA margin expanded to 76.6%, up 3,553bps YoY and 141bps QoQ, extending the margin expansion from 29.0% in Q1FY26 to 61.0% in Q4FY26 and 75.0% in Q1FY27.
• H1FY27 EBITDA reached ₹2,894 Mn at a 76.0% margin, or 2.3 times full-year FY26 EBITDA, while H1 revenue grew 376% YoY to ₹3,805 Mn.
• The binding term sheet for approximately ₹1,000 Cr of Blackwell GPU and allied-services revenue is valid through June 2029, improving stated revenue visibility.

Key concerns

• Depreciation rose to ₹740 Mn in Q2, up ₹133 Mn QoQ, highlighting the capital intensity and execution burden of the GPU fleet expansion.
• The filing does not disclose Q2 cash flow, net debt, fixed assets or CWIP, limiting assessment of funding requirements and returns on the accelerated GPU build-out.
• The ₹1,000 Cr sovereign AI contract requires aggressive capacity expansion, so utilisation and realisation must remain high for the 76.6% EBITDA margin to persist.

View original filing

Research and educational content only. Not investment advice.