E2E‍‌‍‍‌‍‌‍‍‌ Networks Q2FY26 Loss Widens; Stock Price Falls Over 4% Post Results

New Delhi, November 11, 2025 – After the company announced a loss that widened in Q2FY26, the shares of E2E Networks Limited (NSE: E2E) dropped more than 4% in the trading session on Tuesday. The drop in the stock price was mainly due to weaker-than-anticipated financial performance. The increase in depreciation and operating expenses affected the company’s profitability.

Q2FY26 Results Show Steep Decline in Profitability

E2E Networks’ revenue from operations for the quarter of September was ₹4,380.49 lakh, which is a 7.9% reduction compared to the same quarter last year but a strong 21.3% increase sequentially. Even though the company had a better top-line performance than in the previous quarter, the total expenses sharply increased to ₹7,060.02 lakh, which is 118.5% higher than that of the previous year, mainly because of rising depreciation and operational costs related to the expansion of the infrastructure.

Net loss of the company for Q2FY26 was ₹13.46 crore as compared to a net profit of ₹12.14 crore in the corresponding quarter of the previous year. On a quarter-on-quarter basis, the losses were significantly higher and increased from ₹2.84 crore in Q1FY26 to ₹13.46 crore in Q2FY26.

Depreciation and amortisation expenses went up more than five times compared to the previous year and amounted to ₹42.8 crore as compared to ₹12.6 crore in Q2FY25, which is indicative of the commitment of the company towards the cloud infrastructure. Similarly, employee benefit expenses were increased to ₹7.56 crore, while finance costs went down to ₹1.99 crore from ₹3.62 crore a year ago.

Half-Yearly Performance Overview

The total revenue of the first half of 2025 for E2E Networks amounted to ₹10,321.42 lakh as compared to ₹9,007.94 lakh the previous year. However, the company was in a net loss situation of ₹16.30 crore for that period, which is a significant reversal from the profit of ₹22.28 crore recorded during the same time last year.

Operating expenses and depreciation were the main reasons behind the company’s losses, even though E2E had increased its infrastructure to cater to the growing demand for cloud and AI-based solutions.

Stock Trades Lower After Earnings Release

After the publication of the earnings report, shares in E2E Networks Ltd dropped 4.08% to ₹2,924.40 up to 3:07 pm IST, compared with the prior close of ₹3,048.70. The stock was weak from the start and hit an intraday low of ₹2,771.60 before getting a little rebound.

In the past several months, the stock has been losing ground, and its price has gone down substantially from its 52-week high of ₹5,050.00. At present, the company’s market value is around ₹6,020.47 crore, and its volume-weighted average price (VWAP) is ₹3,021.90. At mid-session, the traded volume was 0.28 lakh shares.

E2E Networks Ltd, which was established in 2009, is a Gurugram-based cloud computing and AI infrastructure company providing scalable GPU and CPU cloud platforms. The company cuts across various businesses and offers them cheap cloud-based solutions aimed at increasing the computing power and data efficiency. E2E Networks is a publicly traded company on the NSE and falls under the category of Enabled ‍‌‍‍‌‍‌‍‍‌Services.

REF: https://nsearchives.nseindia.com/corporate/E2E_11112025112727_OutcomeofBoardMeeting11112025.pdf

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