Multibagger E2E Networks, an AI-focused hyperscale cloud platform, is likely to attract investor interest during Tuesday’s trade, September 1, after the company secured a significant long-term order for the provision of cloud GPUs and allied services.
The NSE-listed company informed investors through a regulatory filing after market hours that it had entered into a binding term sheet with a sovereign AI company based in India for the provision of long-term AI infrastructure, including NVIDIA Blackwell cloud GPUs and allied services.
The order has been awarded by a domestic entity and is expected to run until June 2029. The broad consideration for the contract is approximately ₹1,000 crore, excluding applicable taxes.
The company said neither its promoters nor promoter group entities have any interest in the entity awarding the contract. It also clarified that the transaction does not fall within the ambit of related-party transactions.
E2E Networks reported revenue of ₹156.8 crore in Q1 FY27, marking a sharp 334% year-on-year and 64% quarter-on-quarter increase. The growth was driven by the go-live of the B200 cluster, improved utilisation of its flagship GPUs and the continued scale-up of the TIR AI/ML platform.
The quarter also marked a significant milestone in the company’s capital markets journey, with the implementation of a 10:1 stock split and a direct listing on the BSE Mainboard.
In terms of operating performance, the company reported an EBITDA that stood at ₹117.9 crore, with the EBITDA margin expanding to 75.2%, up 1,446 basis points sequentially and 4,609 basis points year-on-year.
On the bottom line, the net profit stood at ₹43.9 crore, translating into a PAT margin of 28%, compared with 6.7% in the previous quarter.
Meanwhile, the stock will be added to the MSCI Global Small Cap Index, according to MSCI’s latest index review. The stock is among 14 companies set to be added to the index, while 19 companies will be removed.
Stock delivers over 12000% return in 5 years
The company’s growing order book and improving financial performance have also been reflected in the stock’s performance, which has seen a meteoric rise of 173% over the last one year, taking it to its current market price of ₹619. Over the last five years, the stock has zoomed an impressive 12,631%.
If an investor had invested ₹1 lakh in the shares five years ago and remained invested until today, their investment would have grown to approximately ₹1.25 crore, based on the stated 12,631% return. This calculation excludes the impact of the stock split.
The company is an NSE-listed and MeitY-empanelled AI-focused hyperscale cloud platform, offering advanced cloud GPUs and a comprehensive ecosystem of cloud technologies designed for the development and deployment of AI, ML and GenAI workloads on large-scale computing clusters.
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