1:10 Stock Split: Data center stock hits 5% upper circuit after revenue jumps 185% YoY

SYNOPSIS: Company reported strong revenue and EBITDA growth with a sharp QoQ turnaround, but FY26 profitability weakened with losses; stock split and rising revenue run rate signal growth focus despite mixed earnings performance.

Shares of India’s premier AI-First Cloud GPU Platform hit a 5 percent upper circuit on Tuesday, after reporting mixed Q4 FY26 and FY26 results, marked by strong revenue growth of around 37 percent QoQ and 185 percent YoY, along with the announcement of a 1:10 stock split.

With a market cap of Rs. 5,847 crores, shares of E2E Networks Limited hit a 5 percent upper circuit at Rs. 2,844.4 on NSE, compared to its previous closing price of Rs. 2,709. The stock has delivered positive returns of over 57 percent in the last one year, and has gained by nearly 32 percent in one month.

Financial Performance Q4 FY26 & FY26

E2E Networks Limited announced its financial results for Q4 FY26 as well as the full financial year ended on 31st March 2026 after market hours on Monday, as per its latest regulatory filings with the stock exchanges.

For Q4 FY26, the company posted consolidated revenue from operations of Rs. 95.6 crores, reflecting a sequential growth of around 37 percent, compared to Rs. 70 crores in Q3 FY26. On a year-on-year basis, revenue increased by over 185 percent from Rs. 33.5 crores recorded in Q4 FY25. This revenue growth is driven by H200 GPU capacity scale-up and sustained H100 inventory optimisation.

For the full year FY26, revenue stood at Rs. 246 crores, reflecting a growth of about 50 percent YoY from Rs. 164 crores in FY25.At the profitability level, net profit for the quarter came in at Rs. 6.5 crores, marking a turnaround from a net loss of Rs. 5.7 crores in Q3 FY26. However, on a year-on-year basis, profit decreased by nearly 52 percent from Rs. 13.6 crores in Q4 FY25.

For FY26, net loss stood at Rs. 16 crores, from a profit of Rs. 47 crores reported in FY25. This PAT loss is entirely driven by a Rs. 109.2 crores surge in depreciation from Rs. 1,185+ crore GPU infrastructure capex commissioned during FY’26; underlying operations remain strongly cash-generative 

Operational performance remained mixed during the quarter. EBITDA stood at Rs. 58 crores in Q4 FY26, reflecting an impressive rise of around 47 percent QoQ from Rs. 40 crores in Q3 FY26, and nearly 336 percent YoY growth from Rs. 13.4 crores in Q4 FY25. EBITDA margins came in at 60.7 percent, expanding by 410 basis points sequentially from 56.6 percent, and improving by 2089.5 basis points on a year-on-year basis from 40 percent.

On a full-year basis, EBITDA remained at Rs. 126.3 crores, marking a growth of around 31 percent YoY, while EBITDA margins declined marginally to 51.4 percent.

Corporate Announcement, Debt Facilities & More

The Board of E2E Networks Limited has approved the proposal of a stock split in a 1:10 ratio, whereby each existing equity share of Rs. 10 each will be subdivided into 10 equity shares of Rs. 1 each. The record date for the sub-division will be announced in due course.

The company’s monthly revenue run rate showed a steady upward trend, rising from Rs. 11.2 crores in March 2025 to Rs. 28 crores in December 2025, and further increasing sharply to Rs. 37.4 crores by March 2026, indicating strong growth momentum.

The company has total debt and lease facilities amounting to around Rs. 611 crores, out of which Rs. 148.3 crores were outstanding as of 31st March 2026. This includes a Rs. 350 crores facility under a 7.75 percent term loan, with Rs. 100 crores outstanding, and a Rs. 100 crores facility under an 8 percent term loan, which had not been drawn as of the reporting date. 

Additionally, a Rs. 74.6 crores term loan carries an outstanding amount of Rs. 5 crores, while lease facilities of Rs. 86.3 crores have an outstanding balance of Rs. 43 crores. The company noted that only a portion of certain facilities has been drawn as of March-end, with some loan amounts availed in April 2026.

E2E Networks Limited is engaged in the business of offering a complete end-to-end cloud infrastructure and support, including high-performance cloud infrastructure, storage and support solutions in multiple countries through four data centres in Tamil Nadu, Maharashtra and Delhi NCR. 

It serves a diverse range of customers, including AI startups, small and large enterprises, government and educational institutions across industries. E2E focuses on delivering cost-efficient, scalable and performant cloud services, built on open-source technologies, tailored for startups, enterprises, and research workloads of all sizes and scales.

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