E2E Networks Ltd (E2E) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good evening and welcome to the E2E Networks Limited Q2 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. I now hand the conference over to Ms. Vanessa Fernandes from investor relations team at Adfactors PR. Thank you and over to you, Vanessa.
Vanessa Fernandes (Adfactors PR): Thank you, Meryl. Good evening, everyone. On behalf of E2E Networks Limited, I would like to welcome you all to the earnings conference call for the second quarter of FY 2027. Today on the call, we have with us from the management Mr. Tarun Dua, Managing Director of E2E Networks and Mr. Nitin Jain, Chief Financial Officer of E2E Networks. We will begin the call with brief opening remarks from the management, followed by a Q&A session. All participant lines will be in listen-only mode during the management's remarks and the floor will be open for questions thereafter. Please note that certain statements made during this call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties that could cause actual results or projections to differ materially from those statements. E2E Networks will hold no responsibility for any actions taken based on such statements and undertakes no obligation to publicly update these forward-looking statements. I now hand over the call to Mr. Tarun Dua for his opening remarks. Over to you, Tarun.
Tarun Dua (E2E Networks Ltd): Hi, everyone. Thanks for joining us today in our second quarter earnings call for FY '27. This has been another strong quarter for E2E Networks, where we have continued executing similar to the previous quarters
Tarun Dua (E2E Networks Ltd): This is still like day zero of AI for us, as as far as we can see, and I would like to kind of like give a brief update on in the previous quarter. So, like we signed like a nearly 1,000 crore deal with like a sovereign AI company for the Blackwell cluster, which lasts up to like June 2029. So, this is something that improves the long-term revenue visibility, and validates E2E's ability to transition the deployed capacity from a pay-as-you-go model to a longer term commitment. So, So, apart from this, like basically like this quarter, we have really focused on increasing the talent density within E2E in all areas of execution. So, we have like a new Chief Revenue Officer. We have also added like a team to the founders office. We also have like a field CTO to kind of like help our customers understand our solutions better. And all of this brings like a lot of net new experience from the industry in like various facets of the industry. So, essentially like that strengthens the management and leadership team where like it primes us for the next phase of growth for ourselves. Now, apart from the inside talent within E2E, like we have also strengthened our strategic advisory team. So, which now and here we would like to welcome Mr. Ananmoy Roy as a strategic advisor. So, Roy has been like a part of the tech ecosystem of India for a very, very long time and essentially like he brings like a lot of deep-rooted knowledge of how AI is being applied into the new ecosystem that is getting built, and his experience and perspectives like would be really valuable in helping us identify like very many opportunities, and this would help shape our long-term growth strategy as well. Now, we continue to invest very rapidly into our sovereign AI platforms, both on the side of TIR and on the side of Jarvis. And like what I believe is that like the platform is the key to our future growth. So, where essentially like that allows us to operate as a full-stack player where we kind of like manage all parts of the sovereign AI multiple layers for our customers, and that allows them to use our GPU platform with confidence for not just training, but also inference and the upcoming agentic workflows. And this of course requires like some part of our GPUs to be used by our own teams rather than like being completely sold out to end customers, and that this is something that allows us to kind of like go forward in the future with boldness. So, now finally about like the future growth, like we have always maintained that like we will continue to be both aggressive as well as prudential in terms of our CapEx deployment. Now, we do not like give a speculative CapEx guidance and what we prefer to kind of like inform everyone of is when we have like sufficiently fructified and solidified our deployment plans. So, that's when we talk about like yeah, that this is the potential CapEx deployment upgrade that we are working on. So, like once it fructifies, that's when we talk about it. Now, I would like to hand over the conversation to our CFO, Mr. Nitin. He can talk about like the some of the recent financial related updates for the last quarter. Over to you, Nitin.
Nitin Jain (E2E Networks Ltd): Thank you, Tarun. Good evening, everyone. And thank you for joining us today.
Nitin Jain (E2E Networks Ltd): Move to our financial performance for the second quarter and first half of FY 2027. Q2 FY 2027 has been another strong quarter for E2E Networks. Revenue for the quarter stands at the 2,238 million, which is up by 411% year on year and 43% quarter on quarter. EBITDA stood at 1,715 million, up 45% quarter on quarter with margin expanding to 76.6%. EBITDA margin expanded by 141 basis points compared to Q1 FY 27. Profit before tax clocked at 971 million compared to 586 million in Q1, an increase of 66%. PAT stood at 727 million compared to 439 million in Q1 with PAT margin improving to 32.5% from 28%. Diluted EPS stands at 3.48 compared to 2.1 in Q1. The performance is driven by contribution from the Blackwell GPUs, better utilization and higher average realization across the GPUs. H1 FY 2027 revenue is 3,805 million, which is up by 376% year on year. EBITDA stands at 2,894 million at 76% which is 2.3 times for the full year FY 26 EBITDA. PBT stands at 1,558 million compared to a loss of 222 million in H1 20 FY 26. And PAT stands at 1,166 million compared to loss of 163 million in H1 FY '26. Now I would hand it over back to the moderator for the question-answer session.
Moderator: Thank you. We will now begin the question-answer session. Anyone who wishes to ask a question may press star and one on your touchtone phone. If you wish to remove yourself from the question queue, you may press star and two. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. Participants are requested to kindly restrict their questions to one main question and a follow-up to maintain equal opportunity. We have the first question from the line of Keshav. Request you to please go ahead with your question.
Keshav: Hello, Tarun. Yeah. Yeah. So, congratulations for a great quarter. Like, like, few questions. Like, when are we expected to like, basically go live with our next B200s that were planned originally, and when we can expect the revenue to be started from that?
Tarun Dua (E2E Networks Ltd): Yeah. So, the next lot of B200, which we have already announced, like is expected to go live this quarter. So, hopefully soon. And like when it goes live, obviously, we'll keep everyone informed.
Moderator: Can you hear us, Keshav? As there is no response, we'll move on to the next question. We have the next question from the line of Bharat Gulati from Dalal & Broacha. Please, go ahead.
Bharat Gulati (Dalal & Broacha): Yeah, hi, hi,
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