AI Stock Hits Upper Circuit After Announcing NVIDIA GPU Expansion Plans; FIIs Nearly Double Their Stake

E2E Networks has been investing heavily in graphics processing unit (GPU) cloud infrastructure as enterprises, AI-native businesses and research organisations increase demand for high-performance computing. The company has now proposed adding about 5.4 MW of capacity for NVIDIA HGX B300 systems and other Blackwell GPUs, on top of its existing capacity of around 9.2 MW.

The proposed addition would lift E2E Networks’ total capacity to roughly 14.6 MW, representing an increase of nearly 59 per cent over the existing base. The current infrastructure is deployed for GPU cloud services and other artificial intelligence-related workloads, including model training, fine-tuning, inference and deployment.

The company said the expansion would be implemented in accordance with its infrastructure deployment plan and anticipated demand for AI computing services. The investment will depend on the pace of infrastructure deployment and related capital expenditure. It plans to finance the expansion through a mix of internal accruals and debt.

The announcement extends E2E Networks’ strategy of building accelerated computing capacity alongside its cloud platforms, including its sovereign and private AI offerings. The company has been positioning itself as a provider of integrated infrastructure covering compute, networking, storage and software, rather than a supplier of stand-alone GPU rentals.

The expansion follows a sharp build-out during FY2025-26, when the company’s revenue from operations rose 49.78 per cent to Rs 245.58 crore. However, higher depreciation from new technology infrastructure pushed it to a net loss of Rs 15.57 crore for the year, despite operating cash flow rising to Rs 122.06 crore. The economics of the proposed addition will therefore depend on the speed of customer onboarding, utilisation levels, GPU pricing and financing costs.

In the September 2026 quarter, net sales increased to Rs 223.76 crore, while profit before interest, depreciation and Tax margin, excluding other income, stood at 76.63 per cent. Management has attributed the recent operating momentum to Blackwell GPU deployments, stronger utilisation and higher realisations.

E2E Networks Hit Upper Circuit of 5%

As of 2:21 pm on October 26, 2026, E2E Networks shares were trading at Rs 593.00, compared with the previous close of Rs 565.10, a gain of 4.94 per cent. The stock was about 20.7 per cent below its 52-week high of Rs 747.90, while remaining well above the 52-week low of Rs 370.60. 

FIIs Nearly Dobubled Thier Stake in E2E Networks

Larsen & Toubro (L&T) held a 16.57 per cent stake in the company as of the quarter ended September 2026. Interestingly, foreign institutional investors (FIIs) nearly doubled their stake from 1.27 per cent to 2.53 per cent during the same period.

What This Means for Investors

The proposed capacity addition supports E2E Networks’ effort to capture demand for newer Blackwell-generation AI infrastructure. It also adds to the company’s ability to serve large training and inference workloads, particularly where customers seek domestic, sovereign or controlled cloud environments. Management has already indicated that its flagship Blackwell deployment linked to a nearly Rs 1,000 crore contract through June 2029 is fully utilised, which offers evidence of demand for premium capacity.

The development is potentially supportive for revenue growth and long-term earnings visibility, but it raises the importance of disciplined capital allocation. E2E’s FY2025-26 loss showed how rapid infrastructure deployment can lift depreciation faster than reported profit, even when operating cash flow remains healthy. The proposed debt component could accelerate scaling, although returns will ultimately hinge on deployment timing, utilisation and the company’s ability to preserve pricing and margins as GPU capacity expands.

Disclaimer: The article is for informational purposes only and not investment advice.