E2E Networks swings to ₹43.9 Cr profit as GPU-cloud revenue quadruples YoY to ₹156.8 Cr

E2E Networks reported a decisive turnaround in Q1 FY27 (consolidated ≡ standalone), posting net profit of ₹43.88 Cr against a loss of ₹2.84 Cr in the year-ago quarter, on revenue from operations of ₹156.76 Cr — up ~334% YoY from ₹36.11 Cr and up ~64% sequentially from ₹95.64 Cr. This is the print of a GPU-cloud provider mid-way through a steep capacity ramp: revenue has grown from ₹36 Cr to ₹96 Cr to ₹157 Cr over the last three quarters, and the operating leverage on that scaling drove net margin to 26.1% of total income from 6.4% in Q4 and a loss a year ago.

The cost structure explains both the earlier losses and the current expansion. Depreciation & amortisation of ₹60.64 Cr is by far the largest expense — larger than all other costs combined — reflecting the heavy, front-loaded capex on GPU infrastructure; finance costs also rose to ₹10.05 Cr (from ₹3.68 Cr in Q4) as the buildout is partly debt-funded. With revenue now more than double the depreciation charge, the fixed-cost base that produced FY26's full-year loss of ₹15.57 Cr is being absorbed. Other income of ₹11.42 Cr contributed ~26% of pre-tax profit, and the entire ₹14.74 Cr tax charge is deferred (no current tax), aided by carried-forward losses.

The stock went into the print at ₹445.8, up 4.7% over the past month of trading.

PBT ₹58.63 Cr — tax ₹14.74 Cr is entirely deferred (nil current tax), no exceptional items either period

EPS ₹2.14 (basic), post the 10 — 1 stock split effective Jun 5, 2026; results unaudited, unmodified limited review

Corporate build-out — WOS Sovcloud Technologies incorporated Jun 17; 2,00,000 ESOPs granted; but CRO resigned Jun 12

Management provides no formal guidance and, as a company only direct-listed on BSE on June 12, 2026, has no brokerage consensus on record — so this quarter cannot be scored against street or prior outlook. Concurrent corporate actions frame the growth ambition: incorporation of wholly-owned subsidiary Sovcloud Technologies (Jun 17), a 2,00,000-option ESOP grant (Jun 30), and the 10:1 stock split (effective Jun 5, which is why EPS reads ₹2.14, not restated-equivalent higher). The one governance watch-item is the Chief Revenue Officer's resignation on Jun 12, at the top of a quarter where the revenue line is doing all the work.