Financial Performance - Q2FY27

Revenue Performance:

  • Revenue from operations: ₹1,383.4 million
  • Quarterly growth: 4% QoQ
  • Yearly growth: 48% YoY

Profitability Metrics:

  • EBITDA: ₹577.6 million (18.3% YoY growth)
  • EBITDA margin: 41.8%
  • Profit After Tax (PAT): ₹310.9 million (40.7% YoY growth)
  • PAT margin: 22.5%
  • EPS: ₹2.83 for Q2FY27 (compared to ₹2.92 for Q1FY27)

Service Line Revenue Breakdown:

  • Infrastructure as a Service (IaaS): 50.5% of revenues
  • Managed Services (MS): 31.2% of revenues
  • Software as a Service (SaaS): 18.3% of revenues

Customer Metrics:

  • Existing customers contributed 86.7% of revenues

Financial Performance - H1FY27

Revenue Performance:

  • Revenue from Operations: ₹2,720.0 million
  • Yearly growth: 25.0% YoY

Profitability Metrics:

  • EBITDA: ₹1,137.5 million (12.3% YoY growth)
  • EBITDA margin: 41.8%
  • Profit After Tax (PAT): ₹603.7 million (26.3% YoY growth)
  • PAT margin: 22.2%
  • EPS: ₹5.49 for H1FY27 (compared to ₹4.76 for H1FY26)

One-Time Expense Impact

  • IPO expense of ₹23.4 million related to marketing and advertising debited to expenses in Q2FY27
  • Adjusted figures excluding IPO expense:
  • Profit before tax would have been ₹789.4 million for H1FY27 and ₹424.7 million for Q2FY27
  • EBITDA would have been ₹1,161.0 million for H1FY27 and ₹601.0 million for Q2FY27

Product Launches and Platform Expansion

SWARAJ Cloud Platform Launch:

  • AI-autonomous sovereign cloud platform built in India
  • Features 52+ integrated services across cloud infrastructure, AI and GPU computing, cybersecurity and managed services
  • Key capability: "Prompt to Production" for accelerating large-scale AI innovation
  • Designed to simplify development and deployment while maintaining data sovereignty

New Sovereign Product Launches:

  • SWARAJ Nandi: Privileged Access Management platform
  • SWARAJ Hansa: AI-powered Agentic SIEM (Security Information and Event Management)
  • SWARAJ Sethu: Unified DevSecOps Platform
  • These platforms strengthen ESDS's integrated product portfolio with advanced cybersecurity, intelligent threat detection, and streamlined software development capabilities

Management Appointments

  • Appointment of Mr. Sushil Kadu as Chief Product Officer (CPO)
  • Mandate includes driving product innovation and advancing the SWARAJ Cloud platform
  • Responsibilities: development and launch of new products, enhancing existing offerings, strengthening integrated sovereign cloud ecosystem

Credit Rating Updates

  • Received rating upgrades from two agencies:
  • CRISIL Ratings: Long-term rating upgraded to CRISIL A-/Positive
  • India Ratings & Research: Long-term rating upgraded to IND A/Stable
  • Upgrades reflect improved credit profile

Management Commentary

Piyush Somani, Chairman & Managing Director:

  • Highlighted strong performance with 48% YoY revenue growth and 40.7% PAT growth
  • Emphasized sustained customer demand and deeper engagement across key segments
  • Noted AI infrastructure entering long-term global expansion cycle with India at early stage
  • Cited industry estimates: approximately US$5.2 trillion needed for AI-ready data centers globally by 2030
  • Projected global data-center discrete GPU revenue to exceed US$51 billion by 2028
  • Emphasized investment priorities centered on AI factories, large-scale GPU clusters, and SWARAJ Cloud ecosystem

Nadukuru Sita Ramaiah, Chief Financial Officer:

  • Emphasized financial discipline, operational efficiency and sustainable growth
  • Highlighted diversified revenue streams across IaaS, Managed Services and SaaS providing business stability
  • Focus on maintaining healthy margins, optimizing costs, and strengthening cash flow management
  • Capital allocation priorities focused on disciplined investment, operational scalability and long-term returns

Company Background

  • AI ecosystem and end-to-end IT services provider serving enterprise, BFSI and government verticals
  • Portfolio includes AI factories, GPU-as-a-Service, cloud services, data centers, colocation, cybersecurity, managed services and software solutions
  • MeitY-empanelled provider with 5 data centers in India and 3 patents for auto-scaling technology
  • Infrastructure supports 720+ banking branches, 9 Smart Cities and 5 million smart meters
  • Hosts major government programmes including Mudra Yojana benefiting 60+ million Indians