ESDS Q1 FY27: Revenue up 7.28% to ₹133.66 Cr, PAT grows 14% to ₹29.28 Cr
ESDS Software Solution Limited reported Q1 FY27 revenue of ₹133.66 crore, up 7.28% YoY, and PAT of ₹29.28 crore, up 14%. Key product launches include Swaraj Garuda and Swaraj Jatayoo. The Sharon AI deal is set to generate revenue from Q3 FY27. The company has a strong international pipeline for over 50,000 GPUs.
The results show steady growth, and the updates on new products and strategic initiatives like AI and GPU deployments are significant for future growth, but the revenue impact from major deals like Sharon AI is still in the future.
The company reported positive year-over-year growth in revenue and profit, launched new products, and provided updates on strategic initiatives like AI cloud platforms and GPU deployments, indicating positive business momentum.
ESDS Software Solution Limited announced its financial results for the first quarter of FY27, reporting a steady growth in revenue and profit.
The company's revenue from operations stood at ₹133.66 crore, marking a year-over-year increase of 7.28%. Profit after tax grew by 14% to ₹29.28 crore. EBITDA was reported at ₹559 million, with a healthy margin of 42%.
During the quarter, ESDS advanced its Swaraj Cloud platform, an AI autonomous sovereign cloud built in India, integrating compute, storage, networking, databases, AI and GPU infrastructure, cybersecurity, and managed services. The company also launched two new products: Swaraj Garuda for application performance monitoring and observability, and Swaraj Jatayoo for database activity monitoring.
In terms of segment revenue for Q1 FY27, Infrastructure-as-a-Service (IaaS) accounted for 51% of total revenue, Managed Services contributed 31.31%, and Software-as-a-Service (SaaS) represented 17.55%. The company noted that while SaaS traditionally has higher profitability, IaaS is also showing improved margins due to the growth in AI factories and GPU business.
The company provided an update on its AI factory initiatives. The Sharon AI deal, involving 8,200 GPUs, is now expected to commence revenue generation from Q3 FY27, with early to mid-Q3 being the target for its operational start. The deployment of ESDS's own GPU capacity, aiming for around 1,500 GPUs, is projected for mid to end of Q4 FY27.
ESDS also highlighted a strong international pipeline with potential for over 50,000 GPUs and a domestic order book of approximately ₹3,000 crore with a 3-year duration. The company aims for PAT margins of 15% to 20% on GPU leasing deals and is strategically acquiring capacity to lease at higher rates as demand and prices increase.
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