E2E NetworksNSE:E2E -1.41%78 Operating Margin % is 7.06% as of Mar. 2026, which is 54% below its 10-year median of 15.44. GuruFocus rates NSE:E2E with a GF Score™ of 78/100 and a GF Value™ of ₹311.15 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,820 Software companies, E2E Networks ranks worse than 77.55% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. E2E Networks's Operating Income for the
three
months ended in Mar. 2026 was ₹68 Mil. E2E Networks's Revenue for the
three
months ended in Mar. 2026 was ₹956 Mil. Therefore, E2E Networks's Operating Margin % for the quarter that ended in Mar. 2026 was 7.06%.
The historical rank and industry rank for E2E Networks's Operating Margin % or its related term are showing as below:
NSE:E2E'
s Operating Margin % Range Over the Past 10 Years
Min: -45.19 Med: 15.44 Max: 34.64
Current: -17.5
NSE:E2E's Operating Margin % is ranked worse than 77.55% of 2820
companies
in the Software industry
Industry Median: 3.865
vs NSE:E2E: -17.50
E2E Networks's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
E2E Networks's Operating Income for the
three
months ended in Mar. 2026 was ₹68 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₹-430 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
E2E Networks Operating Margin % Related Terms
E2E Networks Operating Margin % Historical Data
* Premium members only.
The historical data trend for E2E Networks's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:E2E vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, E2E Networks's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
E2E Networks Operating Margin % vs Software Industry
For the Software industry and Technology sector, E2E Networks's Operating Margin % distribution charts can be found below:
* The bar in red indicates where E2E Networks's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
E2E Networks's Operating Margin % for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
E2E Networks (NSE:E2E) has a Operating Margin % of 7.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on E2E Networks and its competitors. This is 54% below median its historical median of 15.44. According to the industry distribution chart, E2E Networks ranks #2187 out of 2820 companies in the Software industry, placing it in the top 77.6%.
Is E2E Networks' Operating Margin % too high?
E2E Networks' current Operating Margin % of 7.06% is 54% below median its 10-year median of 15.44. The Software industry median Operating Margin % is 3.87. E2E Networks' value of 7.06% is 82.7% above this industry median. Based on the distribution chart, E2E Networks ranks #2187 out of 2820 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, E2E Networks has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does E2E Networks' Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, E2E Networks ranks #2187 out of 2820 companies for Operating Margin %. This places E2E Networks in the lower half of its industry. The industry median Operating Margin % is 3.87. E2E Networks' value of 7.06% is 82.7% above this benchmark. While the company's 10-year median is 15.44 vs. the industry median of 3.87, E2E Networks has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,820 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. E2E Networks's current Operating Margin % of 7.06% is 82.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on E2E Networks and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. E2E Networks's current Operating Margin % is 7.06%, which is 54% below median its own 10-year median of 15.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is E2E Networks stock overvalued right now?
Based on GuruFocus' analysis, E2E Networks (NSE:E2E) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹311.15, compared to a current price of ₹412.30 — trading 32.5% above its estimated fair value. The current Operating Margin % is 7.06%, which is 54% below median its 10-year median of 15.44 and 82.7% above the Software industry median of 3.87. E2E Networks' overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For E2E Networks (NSE:E2E), the current Operating Margin % is 7.06% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is E2E Networks (NSE:E2E) Overvalued in 2026?
Based on GuruFocus' analysis, E2E Networks stock appears to be overvalued.
The current stock price of ₹412.30 is trading 32.5% above its estimated GF Value™ of ₹311.15.
GuruFocus considers E2E Networks to be Significantly Overvalued.
Key valuation signals for NSE:E2E:
Operating Margin %: 7.06% (54% below median its 10-year median of 15.44)
GF Value™: ₹311.15 vs. price of ₹412.30 (32.5% above fair value)
Industry Position: 82.7% above the Software median (#2187 of 2820)
No single metric tells the full story. See the NSE:E2E stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
E2E Networks Ltd is an Indian cloud computing company. It specializes in providing cloud infrastructure with a focus on accelerated computing, including high-performance CPU, large memory, and Cloud GPU platforms featuring NVIDIA GPUs such as A100, H100, and H200. The company offers a self-service cloud platform with various features like CDN, load balancers, firewalls, VPC, DBaaS, and object storage, catering especially to startups, enterprises, and research institutions. E2E Networks has been instrumental in supporting India's digital growth by enabling AI/ML workloads, data science, NLP, and computer vision applications. It offers rapidly deployable cloud solutions with the objective to lowering project delivery costs and timelines.
78GF Score
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