Investor presentationSep 2026
Sep 2026 · Investor presentation · Investor Presentation on Q2FY27
Source: Bse
ESDS Software Solution Limited (ESDS)
Small CapIT stocks · Small cap · NSE
ESDS Software Solution Limited provides AI-enabled cloud, managed services, data centre infrastructure, and software solutions in India. It operates a platform offering IaaS, SaaS, and managed services, catering to government, BFSI, and enterprise customers through community clouds and proprietary technologies.
Data qualityVerify one data layerQuote updated 04 Nov, 03:31 pm ISTPost-result recalculation pendingDetails
Quote04 Nov, 03:31 pm IST
Base fundamentals02 Nov 2026 · screener
Latest result02 Nov, 04:53 pm IST
Score05 Nov, 04:30 am IST · v4.3-runtime-valuation
Tags20 Sept 2026
Coverage13/14 · 93%
Valuation2026-07-20 · Rf 6.8% · IT P/E 19.8 (n=201)
Technical timing lens
Trend score and candlestick chart
60BullishSMA20 -13.4% / mo · MACD − · sector +6.2pp vs Nifty 500 (3M)
Stock trend: 39
Sector RS: 93
Sector 3M: +2.1% vs Nifty 500 -4.1%
IT FPI tailwindFlow only
FPI equity flow was positive in both fortnights, but the sector index is below its 100-session average. View sector evidence
Technical chart
ESDSD candles · FIT view+31.4%Latest close ₹1193.60 on 2026-11-04
Daily history is available from 2026-09-04; the requested 1Y window is partially covered.
Bar
-4.3%
RSI
45
MACD hist
-20.11
52W pos
40%
2026-11-04O ₹1246.90H ₹1246.90L ₹1165.00C ₹1193.60Vol 20.4L sh
Up bar
Down bar
EMA 20
EMA 50
Volume + 20D avg
Result date
RSI(14)
MACD / signal
Market context
Relative performance and chart statistics
Adjusted completed-session prices, rebased to 100
ESDSNifty ITNifty 500
- ESDS
- +31.4%
- Nifty 500
- -2.1%
- Nifty IT
- +4.5%
- Vs Nifty 500
- +33.5 pp
Chart stats
4 Nov 2026- From 52W high
- -35.8%
- 52W range position
- 40%
- ATR (14)
- 7.7%
- Volume vs 20D
- 1.53x
- Avg traded value
- ₹198 Cr
- 20D price channel
- ₹1,102 - ₹1,737.9
₹1,859.2
₹756 - ₹1,859.2
₹91.8
Latest completed session
20-session average
70.3% annualized volatility
Research snapshot
What the evidence says now
Investable fundamentals, management trust is not scored yet, price trend is neutral, and result consistency is still building.
Suggested next step
Research, do not rush
The evidence is not strongly aligned. Compare peers and wait for a cleaner setup.
U-Score
Legacy · UNDERVALUED63
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
Latest result
Pending data—
Revenue NDF · PAT NDF YoY
Technical
Bullish60
Price trend and sector-relative-strength timing.
Valuation
Legacy model-235.4%
Legacy margin-of-safety estimate; the revised evidence label remains in shadow validation.
Trust
pending—
Management reliability not computed yet.
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Financials
Fundamentals, quarterly history, margins, returns and balance-sheet evidence
Latest result
Quarter ended 30 Sept 2026
Pending dataYoY comparison unavailable - result verdict pending data
Filed 02 Nov 2026
Open results browser →| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹272 Cr | NDF | +103.0% |
| EBITDA | ₹113.8 Cr | NDF | +103.1% |
| Operating margin | 41.8% | NDF | -18 bps |
| PAT | ₹60.4 Cr | NDF | +108.2% |
| PAT margin | 22.2% | NDF | +56 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Fundamentals
Valuation
- P/E
- 110.00
- P/B
- —
- EV/EBITDA
- 46.10
- Market Cap
- 13596.00Cr
Profitability
- ROE
- 24.90%
- ROCE
- 30.20%
- ROA
- 18.45%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 22.00%
- EPS 5Y
- 84.00%
- Revenue 3Y
- 32.00%
- EPS 3Y
- 106.00%
Balance Sheet
- Debt/Equity
- 0.18
- Interest Coverage
- 19.50×
- Altman Z
- 9.33
- Book Value
- —
Cash Flow
- FCF Yield
- 9.11%
- FCF Positive Y
- 4/5
- OCF
- 1368.00 Cr
- EPS TTM
- 11.98
Shareholding
- Promoter Hold
- 39.46%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 37%
Financial History
Updated 4/11/2026
Revenue
₹ CrLatest: 472+30.7% vs prev
Net Profit
₹ CrLatest: 121+116.1% vs prev
Return on Equity
%Latest: 22.2+66.0% vs prev
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Technicals
Trend interpretation, Stage 2, relative strength, volume and indicator evidence
Daily technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 45.
- SMA20 falling (~15.5% over last month) — short-term momentum negative.
- RSI(14) at 45 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 36% off 52W high · 58% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Nifty 500 leadership
Relative Strength & Trend Stage
-
RS percentile
Insufficient history
1M return
-7.8%
3M return
-
6M return
-
1Y return
-
RS 1D
-
RS 20D
-
Sector rank
#10
Industry rank
-
Stage evidence
- At least 170 daily sessions are required for the trend-stage read.
50-DMA
unavailable
200-DMA
unavailable
Sector
improving
Industry
unranked
Relative-strength line vs Nifty 500 (base 100)
41 observations
04 Nov 2026Value 134.19-0.60%
RS vs Nifty 500134
Valuation & peers
U-Score 63 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Valuation & peers
U-Score 63 · legacy U-Score band UNDERVALUED · valuation evidence and comparable companies
Premium Compounder
Fundamental score breakdown
U band · UNDERVALUEDValuation0/30
Growth20/25
Quality20/20
Balance Sheet8/15
Cash Flow10/10
Piotroski
8/9 (+5)
Penalties
0
Raw sum
63
Why this score?
Top U-Score contributors and drags from the latest stored fundamentals.
63/100 · legacy band UNDERVALUED
Positive drivers
- FCF yield is supportive at 9.1%.
- Piotroski is strong at 8/9.
- Quality contributes 20/20 to the score.
Main drags
- Fair-value margin of safety is negative at -235.4%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Balance sheet is weaker at 8/15; verify the latest quarterly trend.
Sector valuation model
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Primary lens
PE and EV/EBITDA relative to revenue growth, margins, and cash conversion.
Secondary checks
Deal pipeline, attrition, dollar revenue growth, FCF yield.
Main risk check
Low PE can reflect weak growth or margin pressure.
PE
110.0
PB
—
EV/EBITDA
46.1
ROE
24.9%
ROCE
30.2%
FCF Yield
9.1%
Debt/Equity
0.2
MoS
-235.4%
Score movement
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Stored run: 05 Nov 2026
v4.3-runtime-valuation
Final score
63
Previous: 63
Legacy U-Score band
UNDERVALUED
Previous: UNDERVALUED
Margin of safety
-235.4%
Previous: -235.4%
Score history
12 stored score snapshots. Latest stored move: +0 points.
05 Nov 2026
v4.3-runtime-valuation
61
61
61
61
61
61
61
61
63
63
63
63
Factor attribution
No pillar movement versus the latest stored run. Historical score trend will appear after snapshot storage is enabled.
Modelled fair value
Graham Number
—
Growth-justified P/E
29.7
Growth-justified Value
₹355.81
-235.4% MoS
PEG
1.19
Comparable companies
Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.
Ticker
Name
Why peer
Score
PE
ROE
MoS
Verdict
SRIT
Micro
SRIT India Limited
IT - Services
match 164
70
16.3
30.2%
+56%
UNDERVALUED
ARMEE
Micro
ArMee Infotech Limited
IT - Services
match 162
35
18.9
28.5%
-193%
WATCHLIST
ZENSARTECH
Small
Zensar Technologies Limited
IT Services / Digital
match 92
70
15.2
17.3%
+48%
UNDERVALUED
FRACTAL
Small
Fractal Analytics Limited
IT Services / Digital
match 92
43
33.9
12.0%
-30%
WATCHLIST
SHADOWFAX
Small
Shadowfax Technologies Limited
IT Services / Digital
match 90
36
71.2
10.4%
-139%
WATCHLIST
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business, management & trust
Growth engines, risks, management commitments and evidence-backed delivery
Business and thesis
Where growth can come from, and what can break the case
Thesis intactReviewed 2026-11-04T04:41:25.639Z
Management commentary snapshot
H1FY27 revenue from operations grew 24.6% YoY to ₹2,719.9 million with an EBITDA margin of 41.8%, driven by expansion across cloud services, managed services, and software offerings.
The investment thesis remains intact based on solid top-line growth (24.6% YoY in H1FY27), stable high operating margins (41.8% EBITDA margin), and strong pipeline visibility, including a large international GPUaaS agreement with USD 1,250 million contract value.
Current business mix
Revenue by service lines
Latest issuer-disclosed distribution across 3 reported categories.
IaaS50.1%
Managed Services31.0%
SaaS18.3%
Growth engines
GPU-as-a-Service (GPUaaS)
ACTIVEEntered into an AI cloud infrastructure agreement with an Australia-based neocloud AI compute service provider with a contract value of USD 1,250 million (~₹118,312.50 million) for 8,208 NVIDIA B300 GPUs, targeting revenue commencement in Q3FY27.
Government and Community Clouds
ACTIVEServing 104 clients in Government Community Cloud, 115 BFSI clients across 1,045 branches, and 113 organizations in SAP HANA Community Cloud as of June 30, 2026.
STPI Partnership Model
ACTIVECollaborates with Software Technology Parks of India (STPI) to operate data centres in tier-2 and tier-3 cities under an asset-light model.
Capacity and execution
International AI Infrastructure Cluster
ON_TRACKDeployment of a dedicated AI infrastructure cluster in an existing data centre facility in Australia targeted for completion by September 2026.
IPO Proceeds Deployment for Infrastructure
PLANNEDOut of ₹7,200.0 million raised via fresh IPO issue, ₹5,760.0 million is planned for the purchase and installation of cloud computing equipment and data centre infrastructure.
Tailwinds
Data Localization and Security Mandates
FAVORABLERBI mandates local data storage for BFSI payment data and the Digital Personal Data Protection Act, 2023 enforce data localization, benefiting compliant local cloud providers.
Surging Demand for AI and GPU Infrastructure in India
FAVORABLEIndia's demand for cloud-based GPU infrastructure is projected to grow from $67.31 million in fiscal 2025 to $513.67 million in fiscal 2030 at ~50.15% CAGR.
Risk radar
Customer Concentration and Public Sector Exposure
MONITORGovernment and BFSI segments constitute significant portions of revenue mix, exposing operations to public sector budget cycles and regulatory changes.
Margin Compression from Expenses
MONITOREBITDA margin compressed to 41.8% in H1FY27 from 46.4% in H1FY26, alongside higher other expenses and employee benefit costs.
Management accountability
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
Analyst reading lens
Compare BOTH
Year-over-year comparison is best suited to evaluate annual scaling of data centre operations and revenue momentum, while quarter-over-quarter comparison is essential to track sequential execution and new contract ramps like the upcoming Q3FY27 GPUaaS revenue.
Sector KPIs management disclosed
Revenue Retention Rate
STABLEReported at 86.7% for H1FY27 and 89.7% for Q2FY27.
EBITDA Margin
COMPRESSED41.8% in H1FY27 compared to 46.4% in H1FY26; 41.8% in Q2FY27 compared to 52.0% in Q2FY26.
Days Sales Outstanding (DSO)
STABLE81 days in H1FY27, unchanged from 81 days in H1FY26.
Average Revenue per Customer
MODERATED₹1.1 million in H1FY27 compared to ₹1.2 million in H1FY26.
Management forward view
Sustainable and Green Operations Strategy
ONGOINGManagement is committed to transitioning towards 100% renewable energy over four years and increasing solar power consumption.
Proprietary AI and Cloud Integration
ONGOINGFocusing on AI-driven solutions including SWARAJ Bodhi (AIOps) and SWARAJ Garuda (APM) to optimize customer cloud and GPU workloads.
Thesis monitor
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| GPUaaS Revenue Commencement | Targeted delivery by September 2026 with revenue expected in Q3FY27 | Actual materialization of revenue from the USD 1,250 million Australian neocloud contract |
| IPO Proceeds Utilization | ₹6,730.9 million unutilized held in fixed deposits / monitoring account as of Sept 30, 2026 | Pace of deployment for cloud computing equipment and data centre infrastructure |
| EBITDA Margin Trajectory | 41.8% in H1FY27 | Ability to sustain margins above 40% amid scaling operating expenses and new infrastructure rollouts |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trust Score
Trust profile pending
Trust asks a simple question: can investors rely on management behaviour and financial delivery? Trust Lite uses promoter alignment, cash conversion, leverage, and result consistency. Full transcript-based claim matching appears after enough documents are ingested.
Continue researching ESDS Software Solution Limited
Important announcements & filings
Latest exchange and company disclosures found within the past two years.
Open source ↗
Investor presentation
Investor presentation · ESDS Software Solution Limited has informed the Exchange about Investor Presentation
Source: Nse
AnnouncementOct 2026
Oct 2026 · Announcement under Regulation 30 (LODR)-Change in Management 30 Oct - CTO and CIO Sajiv Nair resigned effective 29 October 2026; exit by 27 January 2027.
Source: Bse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 28 Oct - Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, this is to inform you that a conference call with the Investors and Analysts is …
Source: Bse
Concall transcriptSep 2026
Sep 2026 · Transcript
Source: Bse
Credit ratingSep 2026
Sep 2026 · Announcement under Regulation 30 (LODR)-Credit Rating 29 Sep - India Ratings upgraded ESDS bank loan facilities to IND A/Stable/IND A1 on September 29, 2026.
Source: Bse
Concall transcript
Earnings-call transcript · ESDS Software Solution Limited has informed the Exchange about Transcript
Source: Nse
Credit rating
Credit-rating report · ESDS Software Solution Limited has informed the Exchange about Credit Rating
Source: Nse
Announcement
Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation 22 Sep - Pursuant to Regulation 30 of the SEBI (LODR) Regulations, 2015, this is to inform you that a conference call with the Investors and Analysts is …
Source: Bse
Credit rating
Announcement under Regulation 30 (LODR)-Credit Rating 17 Sep - CRISIL upgraded ESDS long-term rating to A-/Positive and short-term rating to A2+.
Source: Bse
Credit rating
Credit-rating report · ESDS Software Solution Limited has informed the Exchange about Credit Rating
Source: Nse
All information is for study purposes only. For investment decisions, consult your financial advisor. See Playbook for methodology.