Arthneeti

ESDS Software Solution Q2 FY27 Share Price & Earnings Call Analysis

₹1,187.60+5.00% today
Market cap
₹13,920 Cr
P/E
112.80
ROE
24.93%
PEG
1.05
Price to sales
29.48
Debt to equity
0.18
52W high / low
₹1,864 / ₹746
Sales growth (5Y)
22.39%
EBITDA margin
49.61%
Net profit margin
25.49%
Promoter holding
39.47%
Sales (last year)
₹472 Cr

ESDS delivers India's enterprise cloud, GPU, data centre and AI infrastructure, built in India and governed by Indian law.[1]

Guidance scorecard · Q2 FY27 call

What ESDS Software's management guided
and where it ranks in IT - Services

#15of 39 in
IT - Services
Revenue20–40%MarginsFlatCapexPlannedFundraisingPlannedOrder bookRising

RevenueQ1 FY27 call

20–40%
  • FY27 targeted capex of INR 1,500 crores to expand GPU and server capacity, with an additional INR 1,500 crores planned.
  • Strong revenue growth expected from AI factory operations going live in Q3/Q4 FY27, including the large Sharon AI deal with 8,200 GPUs.
  • Domestic business seeing a 30-40% CAGR; international order book larger and growing, with over 50,000 GPUs in strong pipeline.
  • Managed Services and Infrastructure-as-a-Service revenues expected to grow, with GPU-led revenue from India rising over time.
  • Shift from technical design (one-time revenue) to IaaS recurring revenue.

2 more points from ESDS Software's call on revenue

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Full Q1 FY27 analysis

MarginsQ1 FY27 call

Flat

See what ESDS Software said on margins — free account, 30 seconds.

Full Q1 FY27 analysis

CapexQ1 FY27 call

Planned
  • FY27 capex target is around INR 1,500 crores.
  • An additional INR 1,500 crores of capex is planned in FY27, totaling approximately INR 3,000 crores.
  • Capex funded through customer advances, IPO proceeds, and partial debt.
  • Focus on building GPU and server capacity to meet growing demand.
  • Initial conservative approach: acquire customers first, then build capacity.
  • Future strategy includes building capacity proactively through partners and own capital before finalizing customer contracts.
  • Infrastructure expansion planned both in India and internationally, targeting countries with availability of green and clean power.

2 more points from ESDS Software's call on capex

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Full Q1 FY27 analysis

FundraisingQ1 FY27 call

Planned

See what ESDS Software said on fundraising — free account, 30 seconds.

Full Q1 FY27 analysis

Order bookQ1 FY27 call

Rising
  • Domestic order book: Around INR 3,000 crores with a duration of 3 years.
  • Customer advances related to Sharon AI deal: Approximately INR 1,177 crores advance received from one overseas customer (plus INR 720 crores from IPO proceeds).
  • New large orders are in pipeline, with some delays in deployment, e.g., Sharon AI's 8,200 GPU deal is expected to go live by early Q1 or mid Q3 of FY27.

2 more points from ESDS Software's call on the order book

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Full Q1 FY27 analysis
Full IT - Services ranking

Ranges are what management guided for revenue growth and margins on the latest earnings call. Not investment advice, and not a forecast of returns.

Potential multibaggers · Q2 FY27

Potential multibaggers in IT - Services
on management's own guidance

  1. Strong growth
    2
  2. Strong growth
    1
  3. Strong growth
    3
See all potential multibaggersWhere does ESDS Software rank?

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Ranks describe management commentary on revenue and margin from the latest earnings call. Not investment advice.

Peers

IT - Services companies ranked on guidance

#CompanyRevenue guidedMargin guidedMarket capP/E
140%+Up 2%+₹1,016 Cr36.8
240%+Flat₹1,477 Cr34.5
340%+Flat₹1,451 Cr124.1
440%+Flat₹577 Cr18.3
540%+Flat₹361 Cr25.7
640%+Flat₹68 Cr6.7

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Financials of ESDS Software

Quarterly Results, Profit & Loss, Balance Sheet, Cash Flows, and Ratios are shown below as separate sections.

Shareholder Pattern

ESDS Software

Shareholding breakup across reporting periods.

Sep 2026
Promoters +39.46%
FIIs +0.61%
DIIs +6.58%
Public +52.26%
Others +1.09%
No. of Shareholders92,537

Financials of ESDS Software

Quarterly Results

Quarter-by-quarter operating performance

Jun 2025Sep 2025Mar 2026Jun 2026Sep 2026
Sales +12594168134138
Expenses +7245657881
Operating Profit52491035658
OPM %42%52%61%42%42%
Other Income +12325
Interest43333
Depreciation1515171820
Profit before tax3533853640
Tax %26%33%21%20%23%
Net Profit +2622682931
EPS in Rs2.562.176.712.922.65

Financials of ESDS Software

Profit & Loss

Annual income statement trend

Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales +172195208287361472
Expenses +110140160186206238
Operating Profit625547101155234
OPM %36%28%23%35%43%50%
Other Income +23-06158
Interest181826322512
Depreciation374349536263
Profit before tax9-2-282283167
Tax %37%24%-19%39%33%28%
Net Profit +5-3-221456121
EPS in Rs1.05-0.30-2.421.355.5411.98
Dividend Payout %0%0%0%0%0%0%

Financials of ESDS Software

Balance Sheet

Capital structure and asset base

Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026Sep 2026
Equity Capital5999101012
Reserves1811972012174085341,282
Borrowings +11621517925912796113
Other Liabilities +158102111631121,2982,702
Total Liabilities4605235015486561,9384,110
Fixed Assets +211306208322353388395
CWIP50000414
Investments0000458
Other Assets +2442172932252991,5413,693
Total Assets4605235015486561,9384,110

Financials of ESDS Software

Cash Flows

Operating, investing and financing cash movement

Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Cash from Operating Activity +491655571631,368
Cash from Investing Activity +-57-69-54-1-112-130
Cash from Financing Activity +2274-19-717-45
Net Cash Flow1421-18-15581,193
Free Cash Flow-7-441934491,243
CFO/EBITDA Share of operating profit converting into cash: CFO (before tax) / Operating Profit71%47%131%49%108%594%

Financials of ESDS Software

Ratios

Working capital efficiency and return ratios

Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days99183100154145128
Inventory Days
Days Payable
Cash Conversion Cycle99183100154145128
Working Capital Days-117-615010884-806
ROCE %4%1%12%21%30%

Continue your research

What ESDS Software's management said in earlier quarters

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