Revenue and Profit Growth
Over the seven-year period ending March 2025, E2E Networks’ net sales surged from ₹33.75 crores in 2019 to ₹163.96 crores in 2025, reflecting a compound growth trend driven by expanding market presence and operational scale. The company’s total operating income mirrored this growth, with no other operating income reported, indicating core business strength.
Profitability has improved significantly. Operating profit before depreciation and interest (PBDIT) excluding other income rose from ₹10.92 crores in 2019 to ₹96.66 crores in 2025. Including other income, operating profit reached ₹136.09 crores in 2025, a substantial increase from ₹11.37 crores in 2019. This growth was accompanied by a notable improvement in operating profit margin, which climbed to 58.95% in 2025 from 32.36% in 2019, underscoring enhanced operational efficiency.
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Profit After Tax and Margins
Profit after tax (PAT) has shown a strong turnaround, moving from a loss of ₹9.35 crores in 2020 to a profit of ₹47.49 crores in 2025. The PAT margin improved from a negative 37.25% in 2020 to a robust 28.96% in 2025, reflecting the company’s ability to convert revenue growth into bottom-line gains. Earnings per share (EPS) followed a similar pattern, rising from a negative ₹6.54 in 2020 to ₹23.78 in 2025, signalling enhanced shareholder returns.
Cost Structure and Expenditure
While net sales increased nearly fivefold, total expenditure excluding depreciation rose more moderately, from ₹22.83 crores in 2019 to ₹67.30 crores in 2025. Employee costs and purchase of finished goods were the primary expense components, increasing in line with business expansion. Selling and distribution expenses were eliminated by 2025, indicating a possible shift in sales strategy or cost optimisation. Other expenses also rose but remained controlled relative to revenue growth, supporting margin expansion.
Balance Sheet Strength and Asset Growth
E2E Networks’ balance sheet has strengthened considerably. Shareholders’ funds expanded from ₹27.41 crores in 2021 to ₹1,592.77 crores in 2025, driven by a sharp increase in reserves. The company’s total assets grew substantially to ₹2,580.74 crores in 2025 from ₹36.62 crores in 2021, reflecting significant capital investments, including a rise in gross block and capital work in progress. Net block assets increased steadily, supporting operational capacity.
Debt and Liquidity Position
Total debt levels fluctuated, peaking at ₹103.08 crores in 2024 before declining to ₹11.41 crores in 2025, indicating active debt management. The company’s cash and bank balances surged to ₹1,356.94 crores in 2025 from just ₹5.19 crores in 2021, enhancing liquidity and financial flexibility. Net current assets also improved markedly, signalling a stronger working capital position.
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Cash Flow Trends
Cash flow from operating activities has shown consistent improvement, rising from a negative ₹2 crores in 2020 to ₹88 crores in 2025. Despite significant cash outflows in investing activities, particularly in 2025, the company secured substantial financing inflows, resulting in a net cash inflow of ₹455 crores in 2025. This robust cash generation supports ongoing expansion and investment plans.
Summary
In summary, E2E Networks has exhibited strong historical performance characterised by rapid revenue growth, improving profitability, and a fortified balance sheet. The company’s ability to enhance margins and generate positive cash flows while managing debt levels effectively positions it well for future growth. Investors may find these trends indicative of a resilient and expanding enterprise within the IT infrastructure sector.
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