ESDS Software Solution logo

ESDS Software Solution

ESDS NSE

Key Fundamentals

Smallcap
Market Cap
₹20,217 Cr
P/E Ratio
157.4
EBITDA
₹243 Cr
Return on Equity
22.2%
Debt to Equity
0.18
Book Value
₹107.04
52W High
₹1,827.4
52W Low
₹429

Tapetide Score

Data-driven rating, 0–100. How it works →

Key Insights

Strengths

2
  • Company has reduced debt.
  • Company has delivered good profit growth of 84.3% CAGR over last 5 years

Growth Rate

Revenue Growth
27.64% lower than 3Y
Net Income Growth
117% higher than 3Y
Cash Flow Change
741%
ROE
66.67% higher than 3Y
ROCE
39.9% lower than 3Y
EBITDA Margin (Avg.)
11.83% lower than 3Y

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 6d ago
AI opinion · based on fundamentals
Risk high

ESDS Software Solution is a small-cap Indian cloud and data-centre services provider with a market capitalisation of approximately ₹20,683 crore that has grown revenue at a 32% CAGR over three years (FY23-FY26) and expanded PAT from ₹13.61 crore in FY24 to ₹120.82 crore in FY26. The stock trades at a trailing P/E of roughly 166.5x, reflecting aggressive growth expectations, while the company recently secured a ₹11,831 crore AI-cloud infrastructure contract and raised ₹720 crore through its IPO in September 2026.

Bull Case 8
  • Exceptional profit growth: PAT surged from ₹13.61 crore in FY24 to ₹55.61 crore in FY25 to ₹120.82 crore in FY26, translating to an 84% CAGR over five years and 115% TTM growth
  • Strong revenue momentum: revenue grew from ₹286.51 crore in FY24 to ₹361.33 crore in FY25 to ₹472.21 crore in FY26, a 3-year compounded sales growth of 32%
  • Significant margin expansion: EBITDA margin improved from 35.56% in FY24 to 42.86% in FY25 to 49.60% in FY26, indicating improving operating leverage
  • Large new AI-cloud contract: the ₹11,831.25 crore strategic AI cloud infrastructure deal signed in March 2026 with an Australia-based neocloud provider provides multi-year revenue visibility over a 5+2 year term
  • Debt reduction underway: borrowings have fallen substantially per the company's filings, and net worth rose from ₹206.36 crore in FY24 to ₹528.81 crore in FY25/FY26, strengthening the balance sheet
  • Improving return on equity: ROE improved from a 5-year average of 12% to 18% over three years and 25% in the last reported year, reflecting better capital efficiency
  • Growing addressable market: ESDS serves 2,501 customers across BFSI, Government and Enterprise segments in India, positioned in the domestic cloud and data-centre infrastructure space benefiting from digital transformation tailwinds
  • Fresh IPO capital of ₹720 crore provides funds for capacity expansion and growth investment without diluting the balance sheet with additional debt
Bear Case 8
  • Elevated valuation: trailing P/E of ~166.5x and P/B of 16.03x are far above the broader IT sector average, leaving little room for execution misses
  • Concentration risk: the single ₹11,831 crore AI-cloud contract represents a value many multiples of FY26 revenue of ₹472 crore; any delay or cancellation could materially impact forward estimates
  • Small absolute scale: at ₹472 crore FY26 revenue, ESDS remains a fraction of the size of major Indian cloud and IT services peers, limiting pricing power and bargaining leverage
  • Zero dividend yield: the company pays no dividend, offering no income return to shareholders who must rely entirely on capital appreciation
  • Promoter holding at ~39.5% post-IPO is moderate, and institutional holding of only ~9% suggests limited large-fund sponsorship at this stage
  • Limited long-term track record: 10-year growth data is unavailable, and FY23 revenue growth was only 6.25%, showing that growth has not been consistently linear
  • Capital-intensive business model: data-centre and cloud infrastructure require continuous capex, and post-IPO net worth of ~₹529 crore must support scaling to fulfil large contracts
  • Key financial ratios such as debt-to-equity, EPS and ROCE are not fully disclosed or available, reducing transparency for fundamental analysis

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 4h ago
Headwinds 3
  • Stock hits 5% lower circuit Sep 16

    ESDS shares hit the lower circuit limit of 5% at ₹1,733.50 amid profit booking, with circuit limits progressively reduced from 20% to 10% to 5% in recent sessions.

  • Rich valuation at 41.6x P/E Sep 01

    At the upper price band, the company is valued at 41.6x FY26 P/E, significantly above typical IT peers, though EV/EBITDA of 16.3x compares favorably to peer average of 99.49x.

  • Heavy government revenue dependence Sep 01

    Around 27.4% of revenues come from government entities, creating concentration risk tied to public sector spending cycles.

Positives 7
  • $1.25B Sharon AI GPU deal Aug 25

    ESDS signed a 5-year $1.25 billion contract with Sharon AI to deploy 8,208 NVIDIA B300 GPUs, with revenue expected from Q3 FY27. The deal positions ESDS in India's cloud GPU market projected to grow at ~50% CAGR through FY30.

  • Blockbuster IPO, 143x subscribed Sep 03

    The ₹720 crore IPO was subscribed 143x overall (QIBs 275x, NIIs 203x, retail 39x), listed at ₹757 on Sep 4 with a 76.46% premium, and more than doubled from issue price to ₹908.40 on listing day.

  • PAT doubles, margins expand sharply Aug 25

    FY26 PAT more than doubled 117% to ₹120.82 crore from ₹55.61 crore, revenue rose 28% YoY to ₹472.21 crore, and EBITDA margin expanded to 49.6% from 35.6% in FY24.

  • Choice Equities initiates with BUY Sep 03

    Choice Institutional Equities initiated coverage with a BUY rating and ₹1,550 target price at 18x FY28E EV/EBITDA, projecting revenue/EBITDA/PAT CAGR of 120.9%/72.6%/81.3% over FY26-29E.

  • Swaraj Sethu DevSecOps platform launch Sep 14

    ESDS launched Swaraj Sethu, a unified indigenous DevSecOps platform integrating 52+ services across development, deployment, security and monitoring, complementing its Swaraj Cloud platform.

  • Strong anchor and MF backing Aug 25

    Raised ₹216 crore from 19 anchor investors at ₹429/share, with 82% allocated to 6 domestic mutual funds. Motilal Oswal Digital India Fund's NAV surged 5.19% on listing day from its ₹44 crore anchor allocation.

  • International revenue pivot planned Sep 03

    International revenue expected to overtake domestic from FY27 onwards, shifting from the current 25:75 international-to-domestic mix, targeting large customers across US, Europe and APAC.

Neutral 3
  • Q1FY27 earnings call Sep 25 Sep 22

    ESDS has scheduled its Q1FY27 earnings call for September 25, 2026, covering results for the quarter ending June 30, 2026.

  • Postal ballot for director approvals Sep 12

    ESDS issued a postal ballot notice seeking shareholder approval for management remuneration revisions and appointment of a new Whole-time Director.

  • Community cloud for government agencies Sep 08

    ESDS has developed a community cloud platform specifically for government agencies and currently counts 150 banks among its customers.

TL;DR: ESDS had a stellar market debut with its IPO subscribed 143x and shares gaining over 129% from listing price, backed by strong FY26 financials showing 117% PAT growth and 49.6% EBITDA margins. The $1.25 billion Sharon AI GPU contract and aggressive revenue projections (₹472 crore FY26 to ₹5,092 crore FY29E) underpin the bull case. Key risks include the rich post-listing valuation, profit-booking volatility with circuit limit hits, and heavy execution dependency on the AI infrastructure ramp-up. The upcoming Q1FY27 results on Sep 25 will be the first real test of whether the company's growth trajectory is tracking analyst expectations.

Profit & Loss

Particulars Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
172
195
208
287
361
472
Expenses
110
140
160
186
206
238
Operating Profit
62
55
47
101
155
234
OPM %
36%
28%
23%
35%
43%
50%
Other Income
2
3
0
6
15
8
Interest
18
18
26
32
25
12
Depreciation
37
43
49
53
62
63
PBT
9
-2
-28
22
83
167
Tax %
37%
24%
-19%
39%
33%
28%
Net Profit
5
-3
-22
14
56
121
EPS in Rs
10.51
-0.3
-2.42
1.35
5.54
11.98
Div. Payout %
0%
0%
0%
0%
0%
0%
Figures in ₹ Crores

Balance Sheet

Particulars Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
5
9
9
9
10
10
Reserves
181
197
201
217
408
534
Borrowings
116
215
179
259
127
96
Other Liabilities
158
102
111
63
112
1,298
Total Liabilities
460
523
501
548
656
1,938
Fixed Assets
211
306
208
322
353
388
CWIP
5
0
0
0
0
4
Investments
0
0
0
0
4
5
Other Assets
244
217
293
225
299
1,541
Total Assets
460
523
501
548
656
1,938
Figures in ₹ Crores

Cash Flow

Particulars Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
49
16
55
57
163
1,368
Investing
-57
-69
-54
-1
-112
-130
Financing
22
74
-19
-71
7
-45
Net Cash Flow
14
21
-18
-15
58
1,193
Free Cash Flow
-7
-44
19
34
49
1,243
CFO/OP
71
47
131
49
108
594
Figures in ₹ Crores

Ratios

Particulars Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
99
183
100
154
145
128
Cash Conversion Cycle
99
183
100
154
145
128
Working Capital Days
-117
-61
50
108
84
-806
ROCE %
—
4%
1%
12%
21%
30%

Shareholding Pattern

FIIs1.01%Public42.36%DIIs8.51%Others8.66%Promot.39.47%As ofSep 2026

Documents

1
Clarification sought from ESDS Software Solution Ltd 9 Sep - Exchange has sought clarification from ESDS Software Solution Ltd on September 09, 2026 with reference to significant movement in price, in order to ensure that … 9 Sep - Exchange has sought clarification from ESDS Software Solution Ltd on September 09, 2026 with reference to significant movement in price, in order to ensure that …

Frequently Asked Questions about ESDS Software Solution

What does ESDS Software Solution Ltd do?
ESDS delivers India's enterprise cloud, GPU, data centre and AI infrastructure, built in India and governed by Indian law.[1]
Where is ESDS Software Solution Ltd (ESDS) listed?
ESDS Software Solution Ltd trades as ESDS on the NSE and under code 544898 on the BSE.
Which sector does ESDS Software Solution Ltd belong to?
ESDS Software Solution Ltd is classified under the Information Technology sector, in the IT - Services industry.
What is the market capitalisation of ESDS Software Solution Ltd?
ESDS Software Solution Ltd has a market capitalisation of ₹20,217 Cr, which places it in the Large Cap band.
What is the PE ratio of ESDS Software Solution Ltd?
ESDS Software Solution Ltd trades at a PE ratio of 157.40, against a book value of ₹107.04 per share.
What is the 52-week high and low of ESDS Software Solution Ltd?
Over the last 52 weeks ESDS Software Solution Ltd has traded between ₹429 and ₹1,827.4.
What is the Return on Equity (ROE) of ESDS Software Solution Ltd?
ESDS Software Solution Ltd reported a return on equity of 22.20%. Its debt-to-equity ratio is 0.18.

Company Information

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

Website esds.co.in
Listed 2026-09-04
Face Value ₹ 1

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