E2E Networks (E2E) Q4 25/26 earnings summary

Executive summary

• Achieved significant milestones in scaling and monetizing large-scale GPU clusters, supporting both bare metal and container-based deployments for AI workloads, especially for LLM training and inference.

• Provides end-to-end cloud infrastructure and support, focusing on scalable, cost-efficient solutions for AI, startups, enterprises, and research workloads across multiple countries via data centers in Tamil Nadu and Delhi NCR.

• Demonstrated strong technology and talent development, with major software improvements enhancing reliability, performance, and scalability of GPU infrastructure.

• Validated strategy by meeting or exceeding guidance and targets, with a focus on expanding GPU capacity through direct acquisition, partnerships, and asset-light models.

• Positioned to benefit from global and domestic AI infrastructure demand, prioritizing India while serving global clients.

Financial highlights

• Q4 FY26 revenue reached INR 956 million, up 186% year-on-year and 37% quarter-on-quarter; full-year FY26 revenue was INR 2,456 million, up 50% year-on-year.

• Q4 EBITDA was INR 581 million, with margin expanding to 60.7%; profit before tax turned positive at INR 86 million from a loss of INR 75 million in Q3.

• Q4 PAT was INR 64 million (PAT margin 6.7%); full-year PAT loss was INR 156 million, primarily due to high depreciation from GPU investments.

• Diluted EPS for Q4FY26 was INR 3.1; full-year basic EPS was -INR 7.75.

• International revenue comprised roughly 35%-37% of Q4 revenue.

Outlook and guidance

• Expecting continued rapid expansion of GPU clusters, with B200-1024 cluster going live mid-May and another planned soon after.

• Targeting a minimum of 6,000 GPUs by FY27, with ongoing plans to deploy 2,048 B200 GPUs in FY27.

• No specific MRR or long-term contract guidance due to dynamic and fast-changing market conditions; focus remains on quarter-to-quarter growth.

• Anticipate further improvement in profitability as utilization ramps up and revenue outpaces depreciation.

• Management expects continued strong operational cash generation despite high depreciation.