ESDS Software Solution Limited – Investor Presentation Summary

Key Operational Highlights

  • Total Data Centres: 5
  • Total Customers: 2,545
  • Revenue Retention Rate: 86.7%
  • Total Employees: 980
  • Community Cloud Clients as of June 30, 2026: Government Community Cloud (104 clients), BFSI Cloud (115 banks and financial institutions across 1,045 branches), SAP HANA Community Cloud (113 organizations)
  • Security Operations: SIEM programs onboarded across 7,175 devices analyzing 5,143 security alerts for 123 customers; investigated 3,163 critical incidents and issued 130 security advisories from January 1, 2026 to June 30, 2026
  • Cybersecurity services for 123+ customers, securing 5,000+ devices; identified and assessed 20,000+ vulnerabilities from January 1, 2026 to June 30, 2026
  • R&D team strength: 91 members as of June 30, 2026

Key drivers of operational performance: Strong demand for cloud services, expansion of GPUaaS offerings, patented SWARAJ cloud technology, and comprehensive security services.

Financial Highlights

  • Revenue from Operations: ₹2,719.9 million (H1FY27)
  • EBITDA: ₹1,137.5 million (H1FY27)
  • PAT: ₹603.7 million (H1FY27)
  • EPS (Diluted): ₹5.38 (H1FY27)
  • EBITDA Margin: 41.82%
  • PAT Margin: 22.19%

Q2FY27 Performance:

  • Revenue from Operations: ₹1,383.4 million (up 47.5% YoY)
  • Other Income: ₹53.1 million (up 250.9% QoQ)
  • Total Revenue: ₹1,436.5 million (up 49.2% YoY)
  • EBITDA: ₹577.6 million (up 18.3% YoY)
  • PAT: ₹310.9 million (up 40.7% YoY)
  • EPS (Diluted): ₹2.77 (up 28.2% YoY)

YoY/QoQ comparison: Q2FY27 revenue grew 3.5% QoQ and 47.5% YoY; H1FY27 revenue grew 24.6% YoY.

Drivers of financial performance: Higher revenue growth from cloud services, increased other income, and operational efficiencies.

Key Risks: Not explicitly disclosed in the presentation.

Geographical Revenue Split

Domestic vs Export/Regional Revenue: Not specified in the presentation.

Balance Sheet Snapshot

  • Debt-to-Equity Ratio: 0.0 (September 30, 2026)
  • Days Sales Outstanding: 81 days (H1FY27)
  • Debt Service Coverage Ratio: 6.7 times (H1FY27)

Financial Health Insights: Strong cash flow generation, negligible debt, and improved liquidity position.

Capex & Cash Flow Health

  • IPO Proceeds Utilization: ₹469.1 million utilized out of ₹7,200.0 million raised (as of September 30, 2026)
  • Unutilized IPO Proceeds: ₹6,730.9 million held in fixed deposits with scheduled banks
  • Planned Capex: ₹5,760.0 million for purchase and installation of cloud computing equipment and data centre infrastructure

Investment Rationale: Focus on capacity expansion, technology upgrades, and GPUaaS infrastructure development.

Strategic & R&D Initiatives

Investments in Innovation:

  • Liquid Cooling and Active Thermal Management for Data Centres
  • Energy Efficiency Projects
  • System Integration
  • Autonomous Cloud Platform
  • CyberShield AI AI-Powered Cybersecurity Defense
  • Autonomous Hiring Platform
  • Patented SWARAJ vertical auto scalable cloud technology (US Patent 2015, India Patent 2022)
  • Fully Managed GPUaaS offering with design consultancy, infrastructure supply, deployment and operations services

Expected impact on growth: GPUaaS project with ₹11,766.35 million advance from overseas enterprise customer; AI-driven solutions expected to enhance service offerings and market position.

Strategic Rationale: Expanding into high-growth AI and GPU markets, reducing operational costs through automation, and leveraging data sovereignty regulations.

Industry Trends & Business Environment

Macro/Industry Trends:

  • Digital Personal Data Protection Act, 2023 enabling lawful data processing
  • RBI mandates local data storage for BFSI payment data
  • Growing cybersecurity threats with approximately 369 million malware attacks in India in 2024
  • Government initiatives like Mudra Yojana scheme hosted on cloud platforms

Impact on Company: Benefiting from regulatory push for data localization, increased demand for secure cloud solutions, and growing partnerships with government entities.

Management Commentary & Growth Outlook

Strategic Outlook: Focus on enhancing infrastructure capabilities, ensuring operational efficiency, and customer-centric innovation.

FY Guidance: Not explicitly provided in the presentation.

Market Share Targets: Not specified.

Risks and Opportunities: Not explicitly highlighted in the presentation.

Additional Material Information

  • ESDS is a MeitY STQC-audited and empanelled cloud service provider certified to offer public cloud services, virtual private cloud services, and government community cloud solutions
  • Partnership with STPI for managed services, SaaS and cloud platforms to government entities
  • Government-led Mudra Yojana scheme hosted on ESDS's Government Community Cloud, which has sanctioned over ₹3,217 billion in loans, benefiting 60+ million Indians
  • IPO expense of ₹23.4 million related to marketing and advertising debited to expenses in Q2FY27