Synopsis:
E2E Networks hit its upper circuit after announcing an order from IndiaAI Mission, Ministry of Electronics and Information Technology, for allocation of high-performance GPUs to GNANI AI.
A cloud services stock rallied in trade on September 3 and hit its upper circuit after the announcement of a significant GPU allocation order from the Government of India. The stock attracted investor attention as the order strengthened its positioning in the country’s AI infrastructure ecosystem.
E2E Networks Limited, with a market capitalization of Rs. 5,242.85 crore, opened today’s session at Rs. 2,550 against the previous close of Rs. 2,403.10. The stock surged to an intraday high of Rs. 2,643.40, marking a gain of 10 percent from the prior close and hitting its upper circuit.
What’s the News?
The company informed exchanges that it has received a letter from IndiaAI Mission, Ministry of Electronics and Information Technology, regarding the immediate allocation of GPU resources (H100 SXM and H200 SXM) to GNANI AI for the purpose of building India’s foundational model.
As per the communication dated September 2, 2025, E2E will allocate H200 SXM and H100 SXM GPUs for a period of 360 days totaling 1.29 crore GPU hours. The engagement, valued at approximately Rs. 177 crore, also includes provision of GPUs with IB network on a single fabric. This order underlines the company’s role in strengthening India’s AI infrastructure and supporting the government’s AI capability-building ambitions.
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Financial Snapshot
On a sequential basis, revenue rose 7.8 percent to Rs. 36.11 crore in Q1FY26 from Rs. 33.48 crore in Q4FY25. Operating profit fell 21.2 percent to Rs. 10.51 crore from Rs. 13.34 crore. The company swung into a pre-tax loss of Rs. 3.75 crore compared to a profit of Rs. 17.59 crore, while net profit also turned negative at Rs. 2.84 crore against Rs. 13.61 crore in the preceding quarter.
Year-on-year, revenue declined 12.7 percent from Rs. 41.33 crore in Q1FY25 to Rs. 36.11 crore in Q1FY26. Operating profit contracted 61.5 percent from Rs. 27.27 crore to Rs. 10.51 crore. The company reported a pre-tax loss of Rs. 3.75 crore compared to a profit of Rs. 13.55 crore a year ago, while net profit moved from Rs. 10.14 crore in Q1FY25 to a loss of Rs. 2.84 crore in Q1FY26.
About the Company
E2E Networks, also known as E2E Cloud, is a leading Indian public cloud company with a strong focus on powering AI workloads. The company operates a Sovereign Cloud Platform and advanced GPU infrastructure that includes NVIDIA Hopper GPUs and NVIDIA L40S. Through its TIR AI/ML platform, E2E empowers developers, researchers, and creative professionals with next-generation AI and cloud solutions.
Written By Manan Gangwar
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