In a year marked by a sharp sell-off triggered by heightened tensions in the Middle East, some small-cap stocks have managed to withstand the selling pressure, with E2E Networks being one of them.
The stock has been marching higher since the start of the year after witnessing a brutal sell-off throughout 2025. So far this year, the stock has risen from ₹199 to ₹694, resulting in a massive gain of 248%.
This performance marks a sharp contrast to the 50% decline recorded in the previous year. While demand for software stocks has remained muted, E2E Networks has benefited from rising demand for AI infrastructure and has also signed deals involving NVIDIA.
The company is an NSE-listed, MeitY-empanelled, AI-focused hyperscale cloud platform offering advanced cloud GPUs and a comprehensive ecosystem of cloud technologies designed to support the development and deployment of AI, machine learning (ML), and generative AI (GenAI) workloads on large-scale compute clusters.
₹1,000 crore AI deal, NVIDIA Blackwell GPUs: What is fueling the stock’s rally?
During the September quarter, the company signed a binding term sheet worth approximately ₹1,000 crore, excluding taxes, with an Indian sovereign AI company for NVIDIA Blackwell cloud GPUs and allied services. The agreement is valid through June 2029.
The company also enhanced its TIR AI/ML platform by adding VPC Connect, which enables secure, private networking for GPU instances, training clusters, and inference endpoints.
The feature provides enterprise-grade isolation across the AI lifecycle for regulated workloads, comparable to that offered by global hyperscalers.
Through Jarvislabs.ai, its AI cloud platform, the company introduced managed endpoints and model APIs, offering production-ready open-weight models and pay-per-token APIs for open-source models.
Infrastructure upgrades during the quarter included InfiniBand H200 clusters, serverless inference that scales to zero, private VPC networking, object storage, and shared file systems.
Another strong show in September quarter
The company today posted delivered strong performance for the September quarter, with revenue rising to ₹223.8 crore, showing a 411% year-on-year and 43% quarter-on-quarter, driven by contributions from Blackwell GPUs, improved utilization, and higher average realizations across the GPU fleet.
EBITDA margin expanded to 76.6%, while profit before tax (PBT) grew 66% sequentially to ₹97.1 crore. On the bottom line, the net profit jumped 32.5% to ₹72.7 crore.
“For Q2 FY27, revenue increased 5.1 times year-on-year to ₹223.8 crore, EBITDA margin expanded further to 76.6%, and profit after tax (PAT) rose to ₹72.7 crore. The approximately ₹1,000 crore sovereign AI contract for Blackwell GPUs provides strong revenue visibility through 2029,” the company said in its filing.
With shareholder approval for growth capital in place, the company remains focused on aggressive yet judicious capacity expansion to meet India’s growing demand for AI compute, the company said in its regulatory filing.
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