ESDS posts Rs 31 Cr Q2 FY27 profit, up 41%, as revenue grows 48% on cloud demand and its SWARAJ sovereign cloud push

ESDS Software Solution, the Indian cloud, data centre and managed services company whose shares trade on the NSE and BSE, reported a consolidated net profit of Rs 31.1 Cr for the September quarter of FY27 (Q2 FY27), up 40.7% from Rs 22.1 Cr a year earlier, according to its results press release filed with the exchanges and reports by Inc42 and Univest. Revenue from operations rose 48% to Rs 138.3 Cr. Compared with the June quarter, revenue grew about 4% from Rs 133.7 Cr and profit rose about 6% from Rs 29.3 Cr.

EBITDA, a measure of operating profit before interest, tax and depreciation, grew 18.3% year on year to Rs 57.8 Cr, a margin of 41.8%. The net profit margin was 22.5%. The company said it charged Rs 2.3 Cr of IPO related marketing and advertising costs to the quarter, and that without them EBITDA would have been about Rs 60.1 Cr and pre-tax profit about Rs 42.5 Cr.

Renting out computing infrastructure is still the core of the business. Infrastructure as a service made up 50.5% of revenue, managed services 31.2% and software as a service 18.3%, and existing customers accounted for 86.7% of revenue, the company said.

In its filing ESDS also pointed to the launch of SWARAJ Cloud, which it describes as an AI-autonomous sovereign cloud platform built in India with more than 52 services across cloud, GPU computing, cybersecurity and managed services. It added security and developer products under the same brand: SWARAJ Nandi for privileged access management, SWARAJ Hansa for AI-driven security monitoring and SWARAJ Sethu for DevSecOps. Chairman and managing director Piyush Somani said the company's investments are centred on AI factories, large GPU clusters and the sovereign cloud.

The board also appointed Sushil Kadu as chief product officer, according to the exchange filings summarised by Whalesbook and InvestyWise.