E2E Networks Surges to Upper Circuit After AI Platform Posts Massive Profit Reversal in Q1 FY27
Shares of AI cloud platform E2E Networks have witnessed a significant rally, hitting the upper circuit limit on Tuesday. The stock was locked at Rs 446.40 per share on the NSE after reporting a consolidated net profit for the June quarter of the current financial year (FY27).The immediate market reaction has been robust, with shares gaining 10 percent over the last two trading sessions. The rally underscores the successful pivot and rapid growth experienced by the AI-focused infrastructure company.
Financial Performance Leaps as E2E Networks Posts Profit
E2E Networks reported a consolidated net profit of Rs 44 crore for the June quarter of FY27. This marks a drastic turnaround from the previous financial year, during which the company had posted a loss of nearly Rs 3 crore in the corresponding period. The company had previously posted a profit of Rs 6.43 crore in the preceding March quarter.The revenue growth story is equally striking. Operating revenue surged by an impressive 336 percent year-on-year, reaching Rs 157 crore in the June quarter. This contrasts sharply with the Rs 36 crore generated a year earlier. Sequentially, revenue saw a strong increase of 64 percent from the March quarter's figure of Rs 96 crore.
Key Drivers Fueling E2E Networks Rally
The heightened revenue performance is directly attributed to several strategic milestones and operational improvements. The company cited the commissioning of its B200 cluster as a primary driver for the surge in earnings. Improved utilisation of flagship GPUs and the continued scale-up of the TIR AI/ML platform also played pivotal roles.Management confirmed that the successful deployment of the B200 cluster on the TIR platform was completed during the reporting quarter. Furthermore, the company expanded its GPU infrastructure to approximately 5,100 GPUs. This expansion highlights sustained demand from the rapidly evolving AI ecosystem.
Operational Expansion and Future Outlook
E2E Networks continues to solidify its market presence through aggressive capacity expansion throughout FY27. The management highlighted that the utilization across their entire GPU fleet remains extremely strong, validating the service model.The company also announced a strategic corporate action during this quarter. Sovcloud Technologies Ltd was incorporated as a wholly owned subsidiary of E2E Networks. This move is part of the broader effort to strengthen and optimize the operational framework.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 117.9 crore for the quarter. Correspondingly, the EBITDA margin expanded significantly, registering at 75.2 percent. The company also noted its continued focus on team strengthening and improving cluster performance through full-stack optimisation.
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