ESDS Software Solution Limited: FY26 Financial Performance, Operational Milestones, and AI-Driven Growth Outlook

13 July 2026

Financial Performance (FY26 Numbers & Projections):
ESDS Software Solution Limited generated total revenue of ₹472 cr from operations in FY26. This shows a compound annual growth rate (CAGR) of 28.4% from ₹286 crores in FY24. EBITDA jumped to ₹239 crores in FY26, reflecting a CAGR of 53.5%, and the EBITDA margin increased to 50.8%. Profit After Tax (PAT) rose dramatically at a CAGR of 197.9%, reaching ₹120 crores in FY26, which resulted in a PAT margin of 25.6%. This increase in margin was due to careful management of staff, productivity improvements driven by AI, and a focus on higher-margin accounts. Looking ahead, a significant global deal with Sharon AI, valued at about $1.95 billion over five years, provides substantial visibility. Upcoming revenue is expected to reach ₹1927 crores in FY27 and exceed ₹3800 crores annually from FY28 through FY31, while maintaining Gross Margins of 37%.

Operational Metrics:
ESDS operates an integrated full-stack cloud, managed services, and software platform. As of March 31, 2026, the company expanded its network to five operational data centers serving 2,516 customers in total. The Net Revenue Retention (NRR) rate is strong at about 95.46%. Revenue from existing clients makes up 73.0%, while new customers account for 27.0%. By sector, revenue comes primarily from Enterprises (55.1%), followed by Government (27.4%) and Banking, Financial Services, and Insurance (BFSI) (17.5%). The service mix includes Managed Services (41.2%), Infrastructure as a Service (IaaS) (43.9%), and Software as a Service (SaaS) (14.9%). ESDS has a secure balance sheet, with a debt-to-equity ratio of -2.13x and ₹1250 crores in cash available for its ongoing AI development. The company currently has a domestic capacity of approximately 8.9 MW across Nashik, Mumbai, Bengaluru, Noida, and Mohali.

Key Project Executions & Order Book:
The company has a strong domestic order book of ₹980 crores, with 70% set to be monetized within the next three years. The near-term conversion pipeline includes ₹339 crores for FY27, ₹215 crores for FY28, and ₹140 crores for FY29. Notable institutional clients using ESDS platforms include Canara Robeco Mutual Fund, the Indian Institute of Banking & Finance (IIBF), Indian Oil Skytanking, Balmer Lawrie & Co. Ltd., and Kolhapur District Central Co-operative Bank. On the AI infrastructure side, the company generated ₹75 crores in technical design and GPUaaS revenue in FY26. To mitigate risks, ESDS received ₹1187 crores in upfront customer advances to fully fund the infrastructure build.

Strategic Developments & Outlook:
ESDS acted quickly to benefit from India’s data localization rules, the DPDP Act 2023, and MeitY/STQC cloud empanelment standards. The company runs two distinct operations under its sovereign cloud platform: community clouds for regulated sectors (Engine 1) and high-growth, dedicated AI infrastructure SPVs (Engine 2). The outlook includes 8,192 contracted NVIDIA B300 GPUs expected to go live in October 2026, plus an additional 16,000 GPUs in advanced discussions, bringing total committed capacity to about 24,000 GPUs. To support this scale, ESDS plans to expand its liquid-cooled domestic data center capacity to around 37.8 MW by FY30, featuring a new 20 MW site in Sahibabad. Globally, the company has grown its presence to 60 MW of offshore IT load capacity across Australia and the Nordics, with 20 MW already operating in Australia.