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ESDS Software Shares Plunge 5% After Q1 Profit Halves, Revenue Drops 20%
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CNBC TV18•25-09-2026, 09:40
ESDS Software Shares Plunge 5% After Q1 Profit Halves, Revenue Drops 20%
- •ESDS Software Solutions shares hit a 5% lower circuit after reporting a significant drop in Q1 profit and revenue.
- •The company's Q1 FY27 profit after tax declined by approximately 57% sequentially to ’29.3 crore, despite a 14% year-on-year increase.
- •Operating revenue saw a 20.2% sequential decline to ’133.7 crore, contrasting with a 7.3% year-on-year rise.
- •Q1 results fell short of elevated growth expectations, with profit representing only about 12% of Choice Broking's FY27 full-year estimate.
- •The market is closely watching the revenue contribution from ESDS Software’s GPU infrastructure business, including its Australia opportunity, for future growth.
Key Questions Answered
ESDS Software Solutions shares were locked in a 5% lower circuit at ₹1,760.50 after reporting its first-quarter results for FY27, which showed a sequential decline in both revenue and profit.
In Q1 FY27, ESDS Software reported operating revenue of ₹133.7 crore, marking a 7.3% year-on-year increase but a 20.2% sequential decline. Profit after tax rose 14% year-on-year to ₹29.3 crore, but dropped about 57% sequentially from the previous quarter.
ESDS Software Solution Ltd. made its stock-market debut on September 4, with an IPO price of ₹429 per share.
