The Delhi High Court has granted an interim stay on the adjudication proceedings initiated by the Office of the Collector of Stamps, Revenue Department, Government of NCT of Delhi, concerning the issuance of certain equity shares by e2e networks in dematerialised form. This development halts the immediate enforcement of the impugned order passed by the Collector, providing the company with temporary relief while it pursues further legal remedies. The stay is conditional upon the company depositing ₹1.25 crore with the Registry of the Hon'ble Court within one month.

This disclosure follows a previous filing dated May 19, 2026, made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which detailed the initial order by the Collector of Stamps. The current update informs investors that the company is actively complying with the court's interim directions. The Hon'ble High Court has directed that the deposited amount be held in an interest-bearing Fixed Deposit Receipt (FDR) by the Registrar concerned. The operation of the Collector's order remains stayed till the next date of hearing.

Key Details of the Interim Order

The company stated it is taking all necessary steps to comply with the interim directions and will continue to pursue appropriate legal remedies. It has committed to keeping the stock exchanges informed of any further material developments in this matter. The disclosure was signed by Ronit, Company Secretary & Compliance Officer, on July 27, 2026.

What the Numbers Show

The requirement to deposit ₹1.25 crore represents a specific liquidity outflow for the company, albeit one that is preserved in an interest-bearing instrument rather than being forfeited or paid as a penalty. By securing a stay, E2E Networks Limited avoids the immediate financial and operational impact of the Collector's original adjudication order. The interest earned on the Fixed Deposit Receipt will mitigate some of the carrying cost of this deposit during the pendency of the legal proceedings. The outcome remains contingent on the final decision of the High Court, but the interim relief suggests the court recognizes merit in the company's challenge to the stamp duty assessment.

E2E Networks Limited has reported a strong turnaround in its financial performance for the first quarter of FY27, posting a net profit of ₹439 million compared to a net loss of ₹28 million in the same period last year. The company's revenue surged to ₹1,568 million from ₹361 million year-on-year, reflecting significant business growth driven by the go-live of the B200 cluster and improved GPU utilisation. EBITDA expanded sharply to ₹1,179 million from ₹105 million, with EBITDA margin improving to 75.2% from 29.12% in the year-ago period. Management has indicated that these high EBITDA margins are considered sustainable over the medium and potentially long term, supported by increased utilisation, robust market demand, and operating leverage.

Q1 FY27 Financial Highlights

The following table summarises E2E Networks' key financial metrics for Q1 FY27 compared to Q1 of the previous year:

The company's Profit Before Tax (PBT) stood at ₹586 million, a significant increase compared to ₹86 million in the preceding quarter. Diluted Earnings Per Share (EPS) rose to ₹2.10 from ₹0.32 in Q4 FY26. Depreciation for the quarter was ₹606 million, up ₹93 million quarter-on-quarter due to new GPU capital expenditure.

Operational and Strategic Updates

During the quarter, E2E Networks successfully deployed the B200 cluster on its TIR platform, which began contributing to revenue immediately. The GPU infrastructure was scaled to approximately 5,100 GPUs. The company also incorporated Sovcloud Technologies Limited as a wholly owned subsidiary. Additionally, the quarter marked a milestone in the company's capital markets journey with a 10:1 stock split and a direct listing on the BSE Mainboard.

Management Guidance and Strategic Outlook

Management shared its strategic direction during the earnings call, emphasising the company's intent to be a significant part of the AI super cycle build-out over the next two to three years, focusing on infrastructure capacity and platform development to support customer AI initiatives. The current quarterly performance is viewed as sustainable, as existing GPU generations are finding their price-performance sweet spots and customers are increasingly willing to sign longer-term contracts, enhancing revenue predictability.

On the capacity expansion front, the company plans aggressive and judicious deployment, including the next lot of B200s in the coming months, building more Blackwells (including non-flagship variants), and expanding into the Vera Rubin architecture. Management noted that it does not provide specific guidance on Monthly Recurring Revenue (MRR), advising stakeholders to review past performance rather than rely on forward projections.

Earnings Call Details

The company held an earnings call on July 22, 2026, to discuss these results. The event featured key management personnel, including Mr. Tarun Dua, Managing Director, and Mr. Nitin Jain, Chief Financial Officer. The call was held pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The audio recording of the conference call is available on the company's website and can be accessed via the provided link.