Data Centre Stock Surges 5% After ₹1,000 Crore NVIDIA GPU Cloud Deal

Shares of E2E Networks Ltd surged to a 5 percent upper circuit at Rs. 649.65 per share on Tuesday after the cloud computing company announced the signing of a binding term sheet valued at approximately Rs. 1,000 crore. The deal, with an India-based sovereign AI company, will see E2E Networks provide NVIDIA Blackwell cloud GPUs and related services to support high-performance computing and artificial intelligence infrastructure requirements. The value represents a significant, long-term boost for the company, whose market capitalization currently stands at Rs. 12,950.59 crore.

The contract, set to run until June 2029, offers E2E Networks greater visibility for future revenues. According to the company, the agreement effectively transforms the capacity of the NVIDIA Blackwell system expected to be operational in May 2026 into a committed long-term client order. E2E highlighted that this milestone is a testament to growing demand for AI computing in India and serves to reinforce its strategy of securing a stable, long-term customer base, particularly among sovereign and enterprise AI clients.

Following the initial surge, E2E Networks shares edged off their peak and were recently trading at Rs. 630 per share, still notably higher than the previous close of Rs. 618.75 per share.

The company has also reported significant progress on the business front. In the first quarter of FY27, E2E Networks bolstered its AI computing platform by adding GPU clusters such as the NVIDIA B200, supporting large-scale AI training and inference operations. The firm undertook a 10:1 stock split and achieved a dual listing on both the BSE and NSE. Another key development was the acquisition of SovCloud as a wholly-owned subsidiary, a move designed to facilitate mass-scale deployment of GPU infrastructure and strengthen the company’s financing capability for AI expansion. Additionally, E2E enhanced its leadership by appointing Alok Ohrie, former President and Managing Director of Dell Technologies India, as a Strategic Advisor.

Founded in 2009, E2E Networks has been offering GPU cloud services since 2018 and now operates with a team of over 100 engineers. The company runs two proprietary AI platforms, TIR and Jarvislabs.ai, which cover a range of services from AI training to model deployment. E2E has nearly 3,000 Hopper GPUs deployed and over 5,100 GPUs active across its infrastructure, supporting India’s growing AI ecosystem as well as the government’s IndiaAI Mission.

On the financial front, the company reported a steep increase in revenue, rising from Rs. 36 crore in Q1 FY26 to Rs. 157 crore in Q1 FY27, marking a growth of 336.11 percent. Profitability also improved, with E2E Networks shifting from a net loss of Rs. 3 crore in Q1 FY26 to a net profit of Rs. 44 crore in Q1 FY27. Over the last five years, revenue and net profit have grown at a compounded annual growth rate of 47 percent, according to company figures. As of the latest quarter, return ratios stand at -0.51 percent for Return on Capital Employed and -0.95 percent for Return on Equity. The company’s earnings per share is Rs. 1.50, with a low debt-to-equity ratio of 0.09x.