Depreciation takes 43% of E2E Networks' operating profit

Companies No. 82 20 October 2026 · 1 min read

E2E Networks, which rents out NVIDIA GPUs from data centres in Noida and Chennai, says revenue for July to September rose 5.1x in a year, to ₹223.8 crore. Its operating profit before depreciation, interest and tax (EBITDA) was ₹171.5 crore, a 76.6% margin.

That margin leaves out the GPUs. E2E pays for them up front and books their cost over their life as depreciation: ₹74.0 crore this quarter, 43% of EBITDA. Interest took ₹10.3 crore, 5.2x a year ago, as borrowings rose from ₹103 crore to ₹450 crore since March. Net profit was ₹72.7 crore, 32.5% of revenue.

The profit is new: revenue caught up with the fleet. A year ago depreciation of ₹42.8 crore ate 98% of revenue and E2E lost ₹13.5 crore. After ₹1,262 crore spent on equipment in FY26, revenue grew far faster than depreciation, which rose only 1.7x.

Depreciation is charged whether a GPU is rented or idle, so the margin rests on keeping the fleet busy, and it is still rising: up ₹13.3 crore on the June quarter. The ~₹1,000 crore term sheet E2E signed in August with an Indian sovereign AI company, running to June 2029, is 4.1x its FY26 revenue.

A waterfall from E2E Networks' revenue of ₹223.8 crore, down by ₹52.3 crore of running costs to EBITDA of ₹171.5 crore, down by ₹74.0 crore of depreciation and ₹10.3 crore of interest, up by ₹9.9 crore of other income and down by ₹24.4 crore of tax to a net profit of ₹72.7 crore.

Three stacked blocks for E2E Networks' revenue: ₹43.8 crore a year ago, almost all of it depreciation of ₹42.8 crore; ₹156.8 crore in April to June 2026 with ₹60.6 crore of depreciation; ₹223.8 crore in July to September 2026 with ₹74.0 crore of depreciation.

Three bars: E2E Networks' revenue of ₹246 crore in FY26 and ₹381 crore in April to September 2026, against a term sheet worth about ₹1,000 crore with an Indian sovereign AI company, running to June 2029.

Sources