Revenue up 68%, EBITDA flying, PAT bleeding — welcome to the GPU capex hangover era
1. Opening Hook
When the entire market is chanting “AI is the future”, E2E Networks Limited decided to actually build that future—one GPU rack at a time.
The result? Revenues exploded, EBITDA margins stayed absurdly high, and profits… well, profits temporarily went missing under a mountain of depreciation.
This Q3 FY26 update is peak AI-infrastructure storytelling: massive GPU deployments, Blackwell B200s landing in Chennai, IndiaAI contracts worth ₹265 Cr—and a P&L that looks confused by all this ambition.
If you only track PAT, you’ll panic. If you track capacity, contracts, and cash deployment, you might grin instead.
Read on. The numbers look ugly, but the strategy is aggressively beautiful.
2. At a Glance
- Revenue up 68.3% YoY – AI demand arrived faster than analysts could update models.
- QoQ revenue up 59.8% – This isn’t seasonal, it’s structural.
- EBITDA margin at 56.6% – Still elite, even after expansion chaos.
- PAT at -₹57 Mn – Depreciation said “welcome to infra business.”
- GPU capacity crossing 3,900 units – Cloud capex on steroids.
3. Management’s Key Commentary
“We are an AI-first cloud GPU platform.”
(Translation: This is not generic cloud, stop comparing us to hosting companies.) 😏
“Blackwell B200 GPUs have been procured and deployed.”
(Translation: We bought the most expensive toys available.)
“IndiaAI Mission contracts worth ₹265 Cr are under phased deployment.”
(Translation: Revenue visibility exists, patience required.)
“The L&T partnership brings long-cycle enterprise deals.”
(Translation: Slower sales, bigger tickets, lower volatility.)
“EBITDA growth reflects operating leverage.”
(Translation: GPUs sweat harder once utilization improves.)
“PAT is impacted due to higher depreciation.”
(Translation: Accounting hates capex-heavy ambition.)
“Sovereign cloud is a strategic priority.”
(Translation: Government workloads
