Shares of E2E Networks Limited declined nearly 4% on Tuesday to Rs 2,930 on the National Stock Exchange after the cloud computing solutions provider reported a net loss of Rs 13.46 crore for the quarter ended September 30, 2025 (Q2 FY26). The company had reported a profit of Rs 12.14 crore in the same period last year.
According to the company’s unaudited financial results filed with the exchanges, revenue from operations stood at Rs 43.8 crore, down 7.9% year-on-year from Rs 47.55 crore in Q2 FY25. Total income fell to Rs 52.1 crore from Rs 48.4 crore in the year-ago quarter.
Total expenses rose sharply to Rs 70.6 crore from Rs 32.3 crore a year earlier, primarily driven by higher depreciation and amortization expenses, which nearly tripled year-on-year to Rs 42.8 crore from Rs 12.5 crore.
E2E Networks’ EBITDA came in at Rs 18.01 crore, down from Rs 31.44 crore in Q2 FY25, marking a 42.7% YoY decline. The EBITDA margin contracted to 41.12%, compared to 66.12% in the same quarter last year, reflecting significant margin pressure amid rising costs.
For the first half of FY26, the company’s total income stood at Rs 103.2 crore, up from Rs 90.1 crore in the same period last fiscal.
The company attributed the decline in profitability to higher employee costs and increased depreciation tied to infrastructure expansion in its cloud and AI service segments.
Despite the short-term dip in earnings, E2E Networks said it remains committed to strengthening its cloud and AI infrastructure capabilities and maintaining long-term operational efficiency.
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