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ESDS Software Stock Crashes, Hits Lower Circuit: Why the Rush to Sell Multibagger Shares?
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CNBC Awaaz•25-09-2026, 11:48
ESDS Software Stock Crashes, Hits Lower Circuit: Why the Rush to Sell Multibagger Shares?
- •Shares of ESDS Software Solution Ltd. hit a 5% lower circuit on September 25, closing at ₹1,760.50.
- •Selling pressure mounted after the company's first-quarter results, despite the stock giving 4x returns since its listing.
- •Q1 FY27 revenue was ₹133.7 crore, up 7.3% year-on-year, but down 20.2% from the previous quarter.
- •Profit increased 14% year-on-year to ₹29.3 crore, but declined about 57% from ₹67.7 crore in the previous quarter.
- •Choice Broking had initiated coverage with a 'Buy' rating and a target of ₹1,550, but weak Q1 results impacted investor sentiment.
Key Questions Answered
The shares hit a 5% lower circuit, locking at ₹1,760.50, due to heavy selling pressure triggered by weak first-quarter results that showed a sharp sequential decline in profit and revenue compared to the previous quarter.
ESDS Software recorded operating revenue of ₹133.7 crore, up 7.3% year-on-year but down 20.2% sequentially from ₹167.5 crore. Profit after tax rose 14% year-on-year to ₹29.3 crore, but experienced a sharp 57% sequential decline from ₹67.7 crore.
ESDS Software Solution made its stock market debut on September 4, 2026, with an initial public offering priced in the band of ₹408 to ₹429 per share.
