E2E Networks Limited Q3 FY26 Concall Decoded:₹70 Cr quarterly revenue, 56% EBITDA margin… and still bleeding at PAT level because GPUs don’t depreciate politely

1. Opening Hook

While most Indian tech companies are still explaining what AI might do, E2E Networks is already explaining why depreciation just ate their profits. Q3 FY26 was one of those rare quarters where revenue exploded, EBITDA flexed, but PAT still said “not today”.

The company is sprinting ahead with Blackwell GPUs, sovereign AI rhetoric, and government-backed workloads—while accountants quietly cry in the corner. Management sounds confident, capacity is landing fast, and MRR dreams are getting closer to reality.

But between ₹600+ Cr capex, term loans, and GPUs still warming up, the story is less “AI magic” and more “AI patience.”

Read on. This cloud story is heavy… literally.

2. At a Glance

Revenue ₹70 Cr (+68% YoY) – GPUs finally found customers, not just dust.
QoQ growth 60% – When utilization moves, numbers sprint.
EBITDA margin 56.6% – Infra leverage doing infra things.
PAT loss ₹5.7 Cr – Depreciation doesn’t care about hype.
MRR ₹28 Cr (Dec ’25) – March targets sweating slightly less.

3. Management’s Key Commentary

“We are among the largest AI/ML cloud GPU players in India.”
(Translation: Not global hyperscale, but desi heavyweight 😏)

“Majority of our workloads are AI/ML.”
(Translation: If AI demand blinks, we feel it instantly.)

“India AI Mission workloads go live by end-Jan.”
(Translation: Q4 better deliver, or questions will.)

“We are 70–80% towards our March MRR target.”
(Translation: Close enough to repeat it confidently.)

“Depreciation increased due to large GPU commissioning.”
(Translation: Capex party is over, accounting hangover begins 💸)

“Blackwell GPUs will go live in Q4.”
(Translation: Revenue is coming, just let the racks cool.)

4. Numbers Decoded

Metric	Q3 FY26	QoQ	What It Tells You
Revenue	₹70 Cr	+60%	Utilization finally kicking in
EBITDA	₹39.6 Cr	+120%	Operating leverage is real
EBITDA Margin	56.6%	↑	GPU clouds scale beautifully
PAT	-₹5.7 Cr	+58%	Loss shrinking, but still a loss
Utilization	60–65%	↑	Headroom remains

One-liner: EBITDA is behaving like a SaaS company, PAT like an infra startup.

5. Analyst Questions (Decoded)

Downtime risk?
SLA-based credits, standard public cloud playbook. No drama admitted.
India AI payments?
Shifted from

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