AI Cloud Computing Stock Locks in 5% Upper Circuit After Q1 FY27 Results; Revenue Surges 334% YoY, Returns to Profit

On Tuesday, Indian equity benchmarks traded lower, with the benchmark Nifty 50 index declining 50.90 points, or 0.21 per cent, to 24,187.60. Despite the weak broader market sentiment, E2E Networks share price hit the 5 per cent Upper Circuit at Rs 446.40, rising Rs 21.25, after the AI cloud infrastructure company reported a strong turnaround in its Q1 FY27 financial results, driven by robust revenue growth and a return to profitability.

E2E Networks Q1 FY27 Results

On a consolidated basis, revenue from operations surged 334.12 per cent YoY to Rs 156.76 crore in Q1 FY27 from Rs 36.11 crore in the corresponding quarter last year. Total income increased 229.06 per cent YoY to Rs 168.18 crore from Rs 51.11 crore.

The company reported a profit before Tax of Rs 58.63 crore, compared with a loss before tax of Rs 3.75 crore in Q1 FY26. Profit after tax stood at Rs 43.88 crore, marking a turnaround from a net loss of Rs 2.84 crore in the year-ago quarter.

Total comprehensive income came in at Rs 40.10 crore, compared with a comprehensive loss of Rs 3.67 crore in Q1 FY26. Basic earnings per share improved to Rs 2.14, against a loss per share of Rs 0.14 in the corresponding quarter last year.
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Expenses Rise with Capacity Expansion

Total expenses increased 99.69 per cent YoY to Rs 109.55 crore from Rs 54.86 crore. Purchase of services and consumables rose to Rs 22.88 crore from Rs 14.28 crore, while employee benefit expenses increased to Rs 11.00 crore from Rs 7.73 crore.

Depreciation and amortisation expenses more than doubled to Rs 60.64 crore from Rs 27.43 crore, reflecting continued investment in cloud infrastructure. Finance costs increased to Rs 10.05 crore from Rs 1.83 crore, while other expenses stood at Rs 4.99 crore.

Key Corporate Developments

During the quarter, the company incorporated Sovcloud Technologies Limited as a wholly owned subsidiary on June 17, 2026. Although the subsidiary had not commenced operations as of June 30, 2026, its financials have been included in the consolidated results.

The company also completed the subdivision of its equity shares from a face value of Rs 10 to Re 1, effective June 5, 2026. Further, following approval from BSE Limited, E2E Networks' equity shares were listed on the BSE Main Board under the Direct Listing Route with effect from June 12, 2026, making the company listed on both NSE and BSE.

Shareholding Pattern

According to the June 2026 shareholding pattern, Foreign Institutional Investors (FIIs) increased their holding to 1.28 per cent from 0.91 per cent in the March 2026 quarter, while Domestic Institutional Investors (DIIs) reduced their stake to 6.07 per cent from 6.58 per cent.

About E2E Networks

E2E Networks Limited is an Indian cloud infrastructure company focused on public cloud, GPU cloud computing and AI-driven cloud services. The company provides cloud computing infrastructure, GPU-based computing solutions, AI and machine learning platforms, and deep-learning infrastructure for enterprises, developers and startups. It operates an asset-intensive cloud infrastructure model with recurring service contracts and continues to expand its AI cloud capacity across India.

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Disclaimer: The article is for informational purposes only and should not be construed as investment advice.