ESDS Q2 FY27 profit rises 40.7% to ₹31.1 Cr as revenue climbs 48%

ESDS Software Solution, an enterprise cloud and AI company, reported a consolidated net profit of ₹31.1 Cr for the September quarter of FY27. A year earlier it was ₹22.1 Cr, a rise of 40.7%. Compared with ₹29.3 Cr in Q1, profit grew 6.2%. Inc42 and The Hindu BusinessLine both reported the numbers.

Operating revenue was ₹138.3 Cr, up 48% year on year and up 4% from ₹133 Cr in Q1 FY27. EBITDA was ₹57.8 Cr, up 18.3%, with a margin of 41.8%. Inc42 was first to report a PAT margin of 22.5%. It also reported ₹2.3 Cr of IPO-related marketing expenses. Without them, EBITDA would be ₹60.1 Cr and PBT ₹42.5 Cr.

The revenue mix differs between reports. Inc42 put IaaS at 50.5% of revenue, with managed services at 31.2% and SaaS at 18.3%. The Hindu BusinessLine said IaaS was 47%, or ₹65.6 crore, with managed services at 31% and SaaS at 22%. Inc42 added that existing customers gave 86.7% of revenue. The Hindu BusinessLine reported colocation and data centre services at 25%, or ₹16.3 crore.

The Hindu BusinessLine first reported the GPU deal. The GPU business is backed by a contract worth $1,250 million. ESDS has an agreement with an Australia-based neocloud to deploy a cluster by September 2026. Revenue is expected from Q3FY27. Piyush Somani, Chairman & Managing Director, said: "AI infrastructure is entering a long-term global expansion cycle, with India still at an early stage of this opportunity." CFO Nadukuru Sita Ramaiah said: "Our emphasis remains on maintaining healthy margins, optimising costs and strengthening cash flow management."