E2E Networks Unveils 10:1 Stock Split After 186% Revenue Surge; Cash Flow Beats Headline Loss

Synopsis: Filing audited Q4 and FY26 results on April 20, 2026, E2E Networks has reported Q4 revenue of Rs. 95.64 crore, up 186 percent year-on-year while the full-year PAT swung to a loss of Rs. 15.57 crore from a profit of Rs. 47.49 crore in FY25, entirely due to a near-tripling of depreciation from Rs. 60.08 crore to Rs. 169.23 crore as over Rs. 1,185 crore of GPU infrastructure was commissioned during the year; simultaneously, the board has approved a 10:1 equity share split to improve retail accessibility.

India’s listed AI cloud GPU infrastructure company is in focus after a board meeting that combined strong quarterly operating metrics with a full-year reported loss and a structural corporate action. The result set is analytically unusual: a business generating Rs. 122.06 crore in operating cash flows for the year while simultaneously reporting a net loss and the difference between those two numbers is the story investors need to understand before reacting to either the headline profit or the headline loss.

With an approximate market capitalisation of Rs. 5,560.32 crore, the shares of E2E Networks Limited were trading in the range of Rs. 1,732.10 to Rs. 3,894.70 per share. 

The quarterly numbers are the cleanest part of this filing. Revenue from operations for Q4 FY26 came in at Rs. 95.64 crore, up 186 percent from Rs. 33.48 crore in Q4 FY25 and up 37 percent from Q3 FY26’s Rs. 70.02 crore. EBITDA margin expanded to 60.7 percent, a 2,090 basis point improvement year-on-year and 413 basis points quarter-on-quarter driven by H200 GPU capacity scale-up and sustained utilisation optimisation of the H100 inventory. Profit before tax for Q4 turned positive at Rs. 8.56 crore against a loss of Rs. 7.51 crore in Q3 FY26 and a profit of Rs. 17.59 crore in Q4 FY25. Net profit for Q4 was Rs. 6.44 crore.

The sequential recovery from Q3’s loss to Q4’s profit, on the back of a 37 percent QoQ revenue jump, is the inflection the market has been waiting for since the company embarked on its large GPU infrastructure build-out.

For FY26 in full, revenue from operations grew 49.8 percent to Rs. 245.58 crore from Rs. 163.96 crore in FY25. EBITDA reached Rs. 126.3 crore, up 30.6 percent year-on-year. Net loss for the year stood at Rs. 15.57 crore against a net profit of Rs. 47.49 crore in FY25.

The entire loss is a depreciation artefact. Depreciation and amortisation jumped from Rs. 60.08 crore in FY25 to Rs. 169.23 crore in FY26 as the company commissioned over Rs. 1,185 crore of GPU infrastructure purchased during the year. Depreciation on property, plant and equipment alone ran at Rs. 146.95 crore for FY26. Critically, operating cash flow for the year was Rs. 122.06 crore, up from Rs. 88.47 crore in FY25, confirming that the underlying business is strongly cash-generative. The reported loss is a non-cash accounting charge reflecting asset commissioning; the cash economics are demonstrably intact.

Investors who price E2E Networks on reported PAT will reach the wrong conclusion. The relevant metrics to track are EBITDA margin trajectory, GPU utilisation rates, and operating cash flow conversion. 

The board has approved a subdivision of each equity share of face value Rs. 10 into 10 shares of Rs. 1 each, subject to shareholder approval via postal ballot and applicable regulatory clearances. The record date will be notified in due course. Post-split, the outstanding share count moves from 2,05,56,489 to 20,55,64,890 shares. The stated rationale is to improve liquidity and retail accessibility by reducing the per-share price. The split does not affect the company’s economics or market capitalisation.

Business Overview

E2E Networks Limited, incorporated in 2009, is India’s leading AI-first cloud GPU platform. The company provides high-performance GPU cloud infrastructure for AI/ML workloads  including H200, H100, and B200 series GPUs  alongside its TIR AI/ML platform, Sovereign Cloud Platform, and managed cloud solutions, operating data centres in Noida and Chennai. For FY26, the company reported audited standalone revenue of Rs. 245.58 crore, EBITDA of Rs. 126.3 crore, and a net loss of Rs. 15.57 crore, entirely driven by a Rs. 169.23 crore depreciation charge from commissioned GPU infrastructure. Operating cash flow for the year was Rs. 122.06 crore.

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