ESDS Software Solution Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript ESDS Software Solution Ltd filed with BSE on 29 Sept 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
ESDS Software Solution reported Q1 FY27 revenue of INR133.66 crores, up 7.28% year-over-year, with profit after tax growing 14% to INR29.28 crores and EBITDA margin at 42%. Management attributed sequential revenue decline versus Q4 FY26 to one-time design services revenue booked in a subsidiary in the prior quarter. The company discussed progress on GPU deployments tied to the Sharon AI deal in Sydney, domestic and international order books, and capex plans funded by customer advances, IPO proceeds, and debt.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue from operations: INR 133.66 crores (Q1 FY27)
p. 3
“Our revenue from operations came in at INR 133.66 crores, which has grown by 7.28% year-over-year”
Piyush Somani, page 3 of the filed PDF · View the filing
Profit after tax: INR 29.28 crores (Q1 FY27)
p. 3
“while our profit after tax has grown by 14%, reaching to INR 29.28 crores”
Piyush Somani, page 3 of the filed PDF · View the filing
EBITDA: INR 559 million (42% margin) (Q1 FY27)
p. 3
“Our EBITDA stood at INR 559 million, translating to a healthy margin of 42%.”
Piyush Somani, page 3 of the filed PDF · View the filing
Revenue: INR1,336.57 million (Q1 FY27)
p. 4
“Revenue is INR1,336.57 million for the Q1 fiscal year '27, against a revenue of INR1,245.87 million in the corresponding quarter of the last fiscal year.”
Nadukuru Ramaiah, page 4 of the filed PDF · View the filing
Total income: INR1,351.71 million (Q1 FY27)
p. 4
“our total income stands at INR1,351.71 million in the current quarter, which is Q1 fiscal year '27, against which the corresponding number was INR1,257.21 million”
Nadukuru Ramaiah, page 4 of the filed PDF · View the filing
Total expenses: INR987.04 million (Q1 FY27)
p. 4
“the total expenses of Q1 fiscal year '27 was INR987.04 million, whereas for the corresponding period last year was INR910.39 million”
Nadukuru Ramaiah, page 4 of the filed PDF · View the filing
Profit before tax: INR364.67 million (Q1 FY27)
p. 4
“Profit before tax is INR364.67 million for the Q1 fiscal year 2027, whereas the corresponding number was INR346.82 million.”
Nadukuru Ramaiah, page 4 of the filed PDF · View the filing
Total tax expense: INR71.90 million (Q1 FY27)
p. 4
“the total tax expense is INR71.90 million for Q1 fiscal year 2027, whereas the corresponding number was INR89.96 million”
Nadukuru Ramaiah, page 4 of the filed PDF · View the filing
Revenue growth QoQ vs Q4 FY26: down 20.20% (Q1 FY27)
p. 4
“the revenue when compared to Q4 of fiscal year 2026 is down by 20.20%, primarily because there was design services revenue, which we had recorded in one of our subsidiaries during Q4 fiscal year 2026”
Nadukuru Ramaiah, page 4 of the filed PDF · View the filing
IaaS revenue share: 51% (Q1 FY27)
p. 5
“For Q1 FY27, our IaaS revenue was 51% of the total revenue, Managed Service revenue was 31.31%, and SaaS revenue was 17.55%.”
Saurabh Daga, page 5 of the filed PDF · View the filing
Domestic order book: INR3,000 crores
p. 7
“Domestic business, we have got around INR3,000 crores of an order book with us.”
Piyush Somani, page 7 of the filed PDF · View the filing
Order book duration: 3 years
p. 8
“Duration of the order book is 3 years.”
Piyush Somani, page 8 of the filed PDF · View the filing
International GPU funnel: more than 50,000 GPUs
p. 10
“We have a strong funnel of more than 50,000 GPUs right now, and we are trying to figure out how we will deliver that”
Piyush Somani, page 10 of the filed PDF · View the filing
Managed Services revenue growth: 157% year-on-year to around INR76 crores (FY26)
p. 8
“the Managed Services revenue, so it increased like around 157% year-on-year to around INR76 crores”
Divi Agrawal, page 8 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Sharon AI factory revenue start — Q3 FY27
stated firmly by Piyush Somani
p. 6
“From Q3 onwards, we will see the revenue coming in from the AI factory in Sydney.”
Piyush Somani, page 6 of the filed PDF · View the filing
Sharon AI capacity go-live — early or mid Q3
stated conditionally by Piyush Somani
p. 6
“So, we are targeting somewhere early Q1 or mid of Q3. Early or mid of Q3.”
Piyush Somani, page 6 of the filed PDF · View the filing
Own GPU deployment target — around 1,500 GPUs · January or February next year / mid to end of Q4
stated firmly by Piyush Somani
p. 6
“The target is to touch around 1,500 GPUs. We'll be deploying those by January or February next year, which will be mid of Q4.”
Piyush Somani, page 6 of the filed PDF · View the filing
PAT margin on GPU leasing deals — 15% to 20%
stated firmly by Piyush Somani
p. 7
“We are targeting PAT margins in the range of 15% to 20%. So, that's our target PAT margin.”
Piyush Somani, page 7 of the filed PDF · View the filing
Domestic order book growth — CAGR of 30% to 40%
stated firmly by Piyush Somani
p. 10
“Domestic, currently, we are seeing a CAGR of 30% to 40%.”
Piyush Somani, page 10 of the filed PDF · View the filing
Sydney AI factory go-live (revised) — first week of November
stated firmly by Piyush Somani
p. 11
“Yes, that's right. So, we are expecting that to go live by November first week.”
Piyush Somani, page 11 of the filed PDF · View the filing
New Indian GPU capacity go-live — Q4 of the current year
stated firmly by Piyush Somani
p. 11
“So, that will go live. As mentioned in the previous answer also that the capacity will go live by Q4 of the current year.”
Piyush Somani, page 11 of the filed PDF · View the filing
Billing start for new Indian GPU capacity — Q1 FY28
stated firmly by Piyush Somani
p. 11
“Billing will start from Q1.”
Piyush Somani, page 11 of the filed PDF · View the filing
FY27 capex — around INR1,500 crores · FY27
stated firmly by Piyush Somani
p. 17
“FY27, we are targeting to conclude around INR1,500 crores of capex, and additional INR1,500 crores”
Piyush Somani, page 17 of the filed PDF · View the filing
Seasonality reduction — next 2 to 3 years
stated as an aspiration by Piyush Somani
p. 14
“in next 2 years, 3 years' time, we expect the seasonality to go away, because as the – as we deliver more AI factories, there would be equal distribution across all 12 months of the year”
Piyush Somani, page 14 of the filed PDF · View the filing
GPU price trend — next three to five years
stated as an aspiration by Piyush Somani
p. 10
“Continuously going up. Next three to five years, it is anticipated that the rates will go up.”
Piyush Somani, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management explained the three service verticals and gave the segmental revenue mix for Q1 FY27.
Answered by Saurabh Daga
Asked by Swechha Jain: What are the segmental revenue splits and margins across IaaS, SaaS, and Managed Services?
p. 5
“For Q1 FY27, our IaaS revenue was 51% of the total revenue, Managed Service revenue was 31.31%, and SaaS revenue was 17.55%.”
Saurabh Daga, page 5 of the filed PDF · View the filing
Management confirmed a roughly month-to-month-and-a-half delay and said billing would start from Q3.
Answered by Piyush Somani
Asked by Aaryan Mehta: What caused the delay in the Sharon AI Sydney deployment and when will revenue start?
p. 6
“So, there was obviously a delay. So, that September date had got postponed by almost a month, 1.5. So, from Q3 onwards, we will see the revenue coming in from the AI factory in Sydney.”
Piyush Somani, page 6 of the filed PDF · View the filing
Management confirmed it was one-time design service revenue and that GPU revenue would begin from Q3 FY27.
Answered by Saurabh Daga
Asked by Divy Agrawal: Was the large SPOCHUB FY26 revenue from design services one-time or recurring?
p. 8
“Now, the GPU revenue will only get from Q3 FY27.”
Saurabh Daga, page 8 of the filed PDF · View the filing
Management said pricing would follow industry standard rates of $5-6 per GPU per hour.
Answered by Piyush Somani
Asked by Sudhir Bheda: What is the pricing basis for the Sharon AI GPU deal?
p. 9
“the industry standard where people are currently billing upwards of $5 per GPU per hour that is what everyone in the industry, $5, $6 per hour. So, we are also going to bill our customer in that range only.”
Piyush Somani, page 9 of the filed PDF · View the filing
Management declined to give forward-looking numbers at the company level.
Answered by Piyush Somani
Asked by Kunal Bajaj: Can management give a broad outlook on FY27 and FY28 revenue and profitability?
p. 11
“We cannot give any forward-looking numbers, so that is not yet, like, company has not planned to disclose anything like that.”
Piyush Somani, page 11 of the filed PDF · View the filing
Management said the process requires NVIDIA counterpart approval before servicing any client and downplayed concentration risk given high demand and advance payments.
Answered by Piyush Somani
Asked by Zaksh Manekshana: Does the company have exposure to Chinese clients given geopolitical and concentration risk concerns?
p. 12
“So, we actually, when we get a demand from our customers, we discuss that with our NVIDIA counterparts also. They have to approve.”
Piyush Somani, page 12 of the filed PDF · View the filing
Management said the Sharon deal is locked for 7 years at already-discovered rates, and Sharon has since also begun leasing directly to other customers.
Answered by Piyush Somani
Asked by Sandeep Agarwal: Why does Sharon AI route capacity through ESDS instead of leasing directly, and is there renewal risk after the lease period?
p. 15
“Yes. So, Sandeep bhai, we have locked Sharon for 7 years. Our rates are already like discovered with them.”
Piyush Somani, page 15 of the filed PDF · View the filing
Management said it is uncertain what will happen after 7 years but expressed confidence in the relationship and intent to renegotiate.
Answered by Piyush Somani
Asked by Nupur Kogta: Is there a risk of non-renewal of the Sharon lease contract after 7 years?
p. 16
“So, after 7 years, we don't know what will happen, whether our client will continue with us or not, we don't know.”
Piyush Somani, page 16 of the filed PDF · View the filing
Management confirmed GPU supply is already a constraint with multi-month delivery delays.
Answered by Piyush Somani
Asked by Nupur Kogta: Will GPU availability be a constraint for upcoming Indian capacity?
p. 17
“It is already a constraint. There is a delivery timeline delay of 4 months, 6 months, 9 months also.”
Piyush Somani, page 17 of the filed PDF · View the filing
Management said the core business also grew year-on-year in FY26 aside from the one-time item.
Answered by Piyush Somani
Asked by Aaryan Doshi: Did the core business grow excluding the one-time overseas design services revenue?
p. 17
“So, we had a growth in the core business also. If you will see the financials of FY26, you will see that year-on-year, there was a growth in the core business also.”
Piyush Somani, page 17 of the filed PDF · View the filing
Risks flagged
GPU supply constraints and delivery delays
p. 17
“It is already a constraint. There is a delivery timeline delay of 4 months, 6 months, 9 months also.”
Piyush Somani, page 17 of the filed PDF · View the filing
Demand-supply gap driving rising GPU costs affecting margins
p. 15
“It's a demand and supply gap at the moment. The demand is increasing, and the supply is reducing. And because of that, the rates will increase.”
Piyush Somani, page 15 of the filed PDF · View the filing
Uncertainty over contract renewal after lease period ends
p. 16
“So, after 7 years, we don't know what will happen, whether our client will continue with us or not, we don't know.”
Piyush Somani, page 16 of the filed PDF · View the filing
Delay in AI factory deployment timeline versus original plan
p. 6
“So, there was obviously a delay. So, that September date had got postponed by almost a month, 1.5.”
Piyush Somani, page 6 of the filed PDF · View the filing
Forward-looking statements may differ from actual results
p. 18
“actual results may differ from those expressed or implied in such statements”
Prasad Deokar, page 18 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.
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