1:10 Stock Split: IT firm to reward shareholders; record date this week

1:10 Stock Split: E2E Networks Ltd shares are likely to remain in focus this week as the company nears the record date for its 1:10 stock split. The record date is June 5, 2026. Investors holding the stock as of the record date will be eligible to receive 10 equity shares of face value Rs 1 each for every one share with a face value of Rs 10 held.

The corporate action will involve splitting each existing equity share of face value of Rs 10 into 10 equity shares of face value of Re 1 each. The move was approved by the company’s board as part of an effort to improve stock liquidity and make the shares more accessible to retail investors.

What does stock split mean?

Under the stock split, shareholders will receive 10 shares for every one share held as of the record date. While the number of shares held will increase, the overall value of an investor’s holding will remain unchanged immediately after the split, as the share price adjusts proportionately.

For instance, an investor holding 100 shares of E2E Networks before June 5 will see the holding increase to 1,000 shares in the Demat account after the corporate action is completed.

Q4 profit rebounds from previous quarter loss

The stock split comes after the company reported a sharp sequential improvement in earnings for the March quarter.

E2E Networks posted a standalone net profit of Rs 6 crore in Q4 FY26, compared with a loss in the preceding quarter. Revenue from operations rose 36.59 per cent quarter-on-quarter to Rs 95.64 crore.

However, on a year-on-year basis, net profit declined 51.37 per cent, while revenue surged 185.75 per cent during the quarter.

Profit before tax stood at Rs 8.55 crore in Q4 FY26, down 51.37 per cent from the year-ago period.

EBITDA margin expands

The company's operating performance remained strong during the quarter. EBITDA jumped 335.6 per cent year-on-year to Rs 58.1 crore, while EBITDA margin expanded to 60.7 per cent from 56.6 per cent a year earlier.

Monthly revenue run rate reached Rs 37.4 crore in March 2026, reflecting growth of 233.93 per cent compared with Rs 11.2 crore recorded in March 2025.

FY26 performance

For the full financial year, E2E Networks reported a standalone net loss of Rs 15.56 crore, improving from a loss of Rs 47.49 crore in FY25.

Revenue from operations increased 49.78 per cent to Rs 245.58 crore in FY26 from Rs 163.96 crore in the previous fiscal year.

The company also reduced its finance costs to Rs 12.2 crore during FY26, compared with Rs 13.2 crore in FY25.

L&T among key shareholders

According to the March quarter shareholding pattern, promoters held a 39.45 per cent stake in the company. Engineering and infrastructure major Larsen & Toubro Ltd. owned 18.45 per cent.

L&T initially acquired its stake through a preferential allotment and subsequently increased its holding through secondary market purchases.

Focus on AI and cloud infrastructure

E2E Networks operates cloud computing platforms powered by CPU and GPU infrastructure, serving both enterprise computing and artificial intelligence workloads. The company works with global technology partners including NVIDIA, Intel, AMD, Microsoft and Dell Technologies.

Earlier this year, E2E Networks announced plans to build an Nvidia Blackwell GPU cluster on its TIR cloud compute platform. The infrastructure will feature Nvidia HGX B200 systems, Nvidia Enterprise software and Nvidia Nemotron open models, targeting sovereign AI development across sectors including healthcare, finance, manufacturing, agriculture and agentic AI applications.