ESDS Software Solution Q2 FY27 results: net profit ₹60.37 crore

How did ESDS Software Solution perform in Q2 FY27?

ESDS Software Solution reported consolidated revenue of ₹271.99 crore for Q2 FY27, compared with ₹133.66 crore in Q1 FY27. EBITDA was ₹113.75 crore and the EBITDA margin was 41.8%, compared with ₹56 crore and 41.9% in the previous quarter. Revenue rose 103.5% sequentially, while the margin declined by 0.1 percentage points.

Consolidated net profit was ₹60.37 crore in Q2 FY27, compared with ₹29.28 crore in Q1 FY27, while profit before tax was ₹76.59 crore against ₹36.47 crore. Basic EPS was ₹5.49, compared with ₹2.92 in the previous quarter. The results included no exceptional item. Standalone revenue was ₹237.11 crore and standalone profit was ₹41.39 crore.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets were ₹4109.54 crore, total equity was ₹1294.54 crore, borrowings were ₹48.05 crore and cash was ₹1636.83 crore. Trade receivables were ₹236.25 crore and trade payables were ₹44.04 crore. No previous balance-sheet figures were provided for comparison.

For H1 FY27, operating cash flow was ₹108.62 crore, investing cash flow was negative ₹389.92 crore and financing cash flow was ₹664.19 crore. Capital expenditure was ₹55.03 crore. The available filing data did not provide the corresponding H1 FY26 cash-flow figures for comparison.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026, along with limited review reports from the statutory auditors. It also confirmed that there was no deviation or variation in the use of IPO funds raised during the quarter ended 30 September 2026.

The company filed an investor presentation and appointed Sushil Kadu as Chief Product Officer and Senior Management Personnel with effect from 2 November 2026. The board also appointed Sharma and Trivedi LLP as secretarial auditor for a first term of five consecutive financial years, from FY 2026-27 to FY 2030-31, subject to member approval, and convened the 21st AGM for 30 November 2026.

What did ESDS Software Solution's management say?

Management said the Sharon AI factory was targeted to reach ready-for-service between the first week of December 2026 and 17 December 2026. It said one month of revenue and profit could be booked in Q3 FY27, followed by a full quarter from Q4 FY27. Management also said the factory’s GPUs were fully contracted to ESDS.

Management said the international GPU pipeline remained execution-heavy, without customer-level disclosure or firm timing. It also said quarterly performance could vary with project execution and revenue determination, while NVIDIA certification and customer testing still preceded the December 2026 ready-for-service target.

Management said expansion required powered land, firm master service agreements and customer advances, and that no major advances were received in Q2. It also said five-year customer prices and a seven-year vendor rate lock limited repricing if GPU prices rose, while expansion was being paced under a capital-discipline constraint.

How did ESDS Software Solution shares react?

The results were filed after market hours on 2 November 2026. ESDS was up 4.5% on the reaction day from its pre-results close, with no change recorded at 5 minutes, 15 minutes or 30 minutes after the filing appeared.

By the next day’s close, the stock was up 4.9% from its pre-results close. No five-day, industry-median or market-benchmark comparison was provided. On the earlier results day of 24 September 2026, the stock had fallen 5.2%.