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ESDS Software Hits 5% Lower Circuit Second Day; Share Quadrupled Post-Listing.
- •ESDS Software Solutions shares hit a 5 percent lower circuit for the second consecutive day on Monday, September 28.
- •The decline intensified after Q1 results showed a 20% revenue decrease and a 56.7% profit fall compared to the previous quarter.
- •Delay in the Australia deal, now expected to generate revenue from Q3 FY27, pushed back from an initial September target.
- •Choice Broking revised ESDS's FY27 revenue estimate down to Rs 1,876 crore from Rs 2,263 crore.
- •Choice Broking downgraded ESDS's rating from 'buy' to 'sell' while maintaining a target price of Rs 1,550.
Key Questions Answered
Shares of ESDS Software Solutions hit a 5 percent lower circuit following weak quarterly results released the previous week. During the June quarter, the company's revenue decreased by 20 percent and profit fell by 56.7 percent compared to the previous quarter.
Choice Broking downgraded ESDS Software's rating from 'buy' to 'sell' while maintaining its target price at Rs 1,550. The brokerage also revised its fiscal year 2027 revenue estimate downward from Rs 2,263 crore to Rs 1,876 crore.
Management stated that the Australia deal, initially expected in September, has been postponed by about one and a half months. Revenue from this agreement is now anticipated to begin starting from the third quarter of fiscal year 2027, around the first week of November.
