E2E Networks Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

E2E Networks Ltd trades at ₹405, in a confirmed uptrend and 11 weeks into that stage. That is +32.5% against its own 200-day average. It sits at 3% of a 52-week range of ₹288 to ₹4,314. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 6 straight weeks.

Today the stock is in a confirmed uptrend — week 11 of stage 2, confirmed. At ₹405 it trades +32.5% versus its 200-day average and sits at 3% of its 52-week range (₹288–₹4,314).

Against the market, two honest reads. Cumulative: over the last 8.2 years the stock moved +429% while the NIFTY 500 moved +157% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 6 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: how the P/E reads against its own history.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

E2E Networks Ltd trades at 341.0× P/E, against too little history to rank. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 341.0× is against too little history to rank. This is a comparison against the stock's own history — not a claim about what it is worth.

🚨 Why the multiple sits where it does: over the past year annual EPS moved −131.9% against a −83.2% price move — the price outran earnings, pushing the multiple UP its own range.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: Turning around Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

E2E Networks Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −122.9% at the trough to −10.2% off a 1-quarter-old trough, ROCE holding at 3.6%. The read is built from 12 quarters across 4 curves, on full evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

53.3/100 — rank 4 of 5 in Data Centre · 84% evidence confidence

E2E Networks Ltd scores 53.3 out of 100 against the 5 companies it is compared with in Data Centre, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 20.9 + 10.3 + 11.1 + 11 = 53.3. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

E2E Networks Ltd reported ₹157 Cr of revenue in the Jun 26 quarter, +336.1% year on year. That is the 3rd straight quarter of year-on-year growth. Over 10 years it has compounded at 27.9% a year. The last full year, FY26, came in at ₹246 Cr. The last four reported quarters add to ₹367 Cr.

E2E Networks Ltd reported ₹157 Cr of revenue in the Jun 26 quarter, +336.1% year on year. That is the 3rd straight quarter of year-on-year growth. Over 10 years it has compounded at 27.9% a year. The last full year, FY26, came in at ₹246 Cr. The last four reported quarters add to ₹367 Cr.

FY26 revenue came in at ₹246 Cr (+50.0% on the year), capping 10 years at 27.9% compound. The latest quarter (Jun 26) printed ₹157 Cr, +336.1% year on year — the 3rd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +145.8% growth against the decade's 27.9% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +131.2% over the last 4 quarters against +77.6%/yr over the last 8 — accelerating; TTM profit −10.2% vs +11.0%/yr — rolling over.

→ Revenue grew — did margins hold as it scaled? Next: 75.0% this quarter (+46.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

E2E Networks Ltd's operating margin is 75.0% in the Jun 26 quarter, +46.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −5.0% to 61.0%. The current quarter is running above every full year in that window.

E2E Networks Ltd's operating margin is 75.0% in the Jun 26 quarter, +46.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −5.0% to 61.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is 75.0%, +46.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −5.0%–61.0%.

Why the margin moved: operating margin went +46.1 pp year on year while gross margin went +25.0 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins held — did that reach the bottom line? Next: profit null in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

E2E Networks Ltd earned ₹44.0 Cr of net profit in the Jun 26 quarter. The full FY26 year was a loss of ₹16.0 Cr. That is 28.0% of the quarter's revenue. The same quarter a year earlier lost ₹3.0 Cr. 3 of the last 12 reported quarters were loss-making.

E2E Networks Ltd earned ₹44.0 Cr of net profit in the Jun 26 quarter. The full FY26 year was a loss of ₹16.0 Cr. That is 28.0% of the quarter's revenue. The same quarter a year earlier lost ₹3.0 Cr. 3 of the last 12 reported quarters were loss-making.

Jun 26 profit was ₹44.0 Cr, null year on year. On the full year, FY26 printed ₹−16.0 Cr (−134.0%).

Pace comparison, last four quarters: profit −138.6% vs revenue +145.8%. Profit is growing slower than sales — costs are eating the growth before it reaches the bottom line.

→ Profit rose — but did the cash follow? Next: 211% of the last 3 years' profit arrived as cash.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 3 fiscal years 211% of E2E Networks Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹122 Cr of operating cash against ₹−16.0 Cr of profit. After ₹713 Cr of capital spending, ₹−591 Cr was left as free cash.

FY26: operating cash of ₹122 Cr against reported profit of ₹−16.0 Cr, leaving free cash of ₹−591 Cr after ₹713 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 211% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 211%: the cash cycle stretched 21 days between FY21 and FY26 — more of each rupee of profit waits inside the cycle before arriving.

Router verdict: the bigger cash user is investment — capital spending ran 7.2× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹1,772 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

E2E Networks Ltd's cash conversion cycle runs 25 days in FY26, up from 4 days in FY21. Capital spending ran ₹1,772 Cr over the last 3 years. At FY26 sales of ₹246 Cr each day of that cycle holds about ₹0.7 Cr, so roughly ₹17.0 Cr sits inside the business at any moment.

FY26: debtors at 25 days, inventory at 0 days — roughly 0.0 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 25 days, looser than FY21's 4.

In money terms: at FY26 sales of ₹246 Cr, each day of the cycle holds about ₹0.7 Cr — so the 25-day loop keeps roughly ₹17.0 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹1,772 Cr over the last 3 fiscal years against ₹245 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹533 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is −1% and the ROIC − WACC spread is −10.4 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

E2E Networks Ltd earns a ROCE of −1% in FY26. That is up from a trough of −37% in FY20. Return on invested capital clears the cost of that capital by −10.4 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is −6.5% net margin on 0.11× asset turns.

FY26 ROCE is −1%, recovered from a FY20 trough of −37% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): −6.5% net margin × 0.11× asset turns × 1.38× balance-sheet leverage ≈ −1.0% on equity. Margin does its share; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 1.6% − 12.0% = a −10.4 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.09.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

E2E Networks Ltd carries total debt of ₹159 Cr against shareholder equity of ₹1,685 Cr as of Jun 26, a debt-to-equity of 0.09 — effectively unlevered. On the annual view that ratio went from 0.05 in FY22 to 0.09 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Jun 26: total debt of ₹159 Cr against shareholder equity of ₹1,685 Cr — a debt-to-equity of 0.09. On the annual view, debt-to-equity went from 0.05 (FY22) to 0.09 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Promoters cut 12.1 points over 8 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Promoters cut 12.1 points of E2E Networks Ltd over 8 quarters, the biggest move on the register. That takes promoters to 39.5% of the company. Foreign institutions moved −2.1 points over the same window, to 1.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Promoters: −12.1 points over 8 quarters to 39.5%; Foreign institutions: −2.1 points over 8 quarters to 1.3%; Domestic institutions: +2.0 points over 8 quarters to 6.1%.

Why the register moved: rotation — foreign institutions −2.1 points against domestic institutions +2.0 points over 8 quarters, with promoters −12.1 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

E2E Networks Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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