ESDS Software Solution Limited has announced its financial results for the second quarter and half year ended September 30, 2026, reporting revenue from operations of Rs 1,383.4 million for Q2FY27, marking a 48 per cent year-on-year increase.
Piyush Somani, Chairman and Managing Director, ESDS Software Solution, said, “We delivered a strong performance in Q2FY27, with Revenue from Operations growing 48% YoY and Profit After Tax increasing 40.7%. The quarter reflects sustained customer demand, deeper engagement across our key segments, and our continued focus on disciplined execution across the technology ecosystem.
“AI infrastructure is entering a long-term global expansion cycle, with India still at an early stage of this opportunity. Industry estimates indicate that approximately US$5.2 trillion will need to be invested in AI-ready data centres globally by 2030. Within this rapidly expanding ecosystem, the global data-centre discrete GPU revenue alone is projected to exceed US$51 billion by 2028. This investment cycle will be underpinned by AI factories, high-density compute and large-scale GPU clusters. It is being further accelerated by the growing strategic importance of sovereignty and control over mission-critical digital infrastructure across governments, BFSI institutions and enterprises.
“ESDS has been building towards this convergence, with our investment priorities centred on AI factories, large-scale GPU clusters and our flagship AI-autonomous sovereign cloud ecosystem – SWARAJ Cloud. Our efforts remain directed towards translating these investments into sustainable value creation for our customers and the broader ecosystem.”
Nadukuru Sita Ramaiah, Chief Financial Officer, ESDS Software Solution, said, “Q2FY27 reflects our continued focus on financial discipline, operational efficiency and sustainable growth. We reported revenue from operations of ₹1383.4 million, representing a YoY growth of 48%, while maintaining an EBITDA margin of 41.8%.
“Our diversified revenue streams across Infrastructure-as-a-Service, Managed Services and Software-as-a-Service provide a foundation for long-term business stability, while our emphasis remains on maintaining healthy margins, optimising costs and strengthening cash flow management. As we expand our capabilities across cloud, data centres and AI ecosystem, our capital allocation priorities remain focused on disciplined investment, operational scalability and long-term returns. Our focus remains on translating strategic investments into sustainable value for our shareholders.”
During Q2FY27, EBITDA stood at Rs 577.6 million, growing 18.3 per cent year-on-year, with a margin of 41.8 per cent. Profit after tax increased 40.7 per cent to Rs 310.9 million, with a margin of 22.5 per cent. Revenue from operations registered sequential growth of 4 per cent.
Infrastructure-as-a-Service contributed 50.5 per cent of the company’s revenue, while Managed Services accounted for 31.2 per cent and Software-as-a-Service contributed 18.3 per cent. Existing customers accounted for 86.7 per cent of revenue during the quarter.
For H1FY27, revenue from operations stood at Rs 2,720 million, registering year-on-year growth of 25 per cent. EBITDA increased 12.3 per cent to Rs 1,137.5 million, with a margin of 41.8 per cent, while profit after tax grew 26.3 per cent to Rs 603.7 million, with a margin of 22.2 per cent. Earnings per share for the half year stood at Rs 5.49, compared with Rs 4.76 in H1FY26.
During the quarter, ESDS launched SWARAJ Cloud, an AI-autonomous sovereign cloud platform developed in India for organisations worldwide. The platform brings together more than 52 integrated services across cloud infrastructure, AI and GPU computing, cybersecurity and managed services. Its ‘Prompt to Production’ capability is designed to help organisations accelerate AI innovation, simplify development and deployment, and scale mission-critical workloads while maintaining greater control over data, infrastructure and sovereignty.
The company also expanded its sovereign product portfolio with the launch of SWARAJ Nandi, a Privileged Access Management platform; SWARAJ Hansa, an AI-powered Agentic SIEM platform; and SWARAJ Sethu, a Unified DevSecOps platform. These additions strengthen its offerings across cybersecurity, threat detection, privileged access governance and software development and deployment.
ESDS further expanded its AI-enabled sovereign technology ecosystem with products including SWARAJ Garuda for Application Performance Monitoring and SWARAJ Jatayoo for Database Activity Monitoring, alongside Nandi, Hansa and Sethu. These offerings bring together cloud, AI, security, observability and software delivery capabilities within its integrated ecosystem.
The company also appointed Sushil Kadu as Chief Product Officer to accelerate product innovation and advance the SWARAJ Cloud platform. His responsibilities include developing and launching new products and services, enhancing existing offerings and strengthening ESDS’s integrated sovereign cloud, AI and enterprise technology portfolio.
During H1FY27, ESDS received rating upgrades from CRISIL Ratings and India Ratings & Research. Its long-term ratings were upgraded to CRISIL A-/Positive and IND A/Stable, respectively, reflecting an improvement in its credit profile.
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