ESDS Software Solution Q2 revenue rises 47%, profit up 41%

ESDS Software Solution Limited reported consolidated revenue from operations of Rs 138.34 crore and profit after tax of Rs 31.09 crore for the quarter ended September 30, 2026, increases of 47% and 41% respectively from a year earlier. The result followed the company’s September 4, 2026 listing on the National Stock Exchange of India Limited.

How did ESDS Software Solution perform in the September quarter?

ESDS Software Solution’s revenue from operations rose by Rs 44.56 crore to Rs 138.34 crore in the September 2026 quarter, from Rs 93.78 crore in the quarter ended September 30, 2025. Other income more than doubled to Rs 5.31 crore from Rs 2.47 crore, taking total income to Rs 143.65 crore, compared with Rs 96.25 crore a year earlier.

Profit before tax increased 22% to Rs 40.13 crore from Rs 33.02 crore. Tax expense declined to Rs 9.04 crore from Rs 10.92 crore, comprising current tax of Rs 10.00 crore and a deferred-tax credit of Rs 0.96 crore. Consequently, profit after tax rose by Rs 8.99 crore to Rs 31.09 crore from Rs 22.10 crore.

ESDS Software Solution also increased revenue sequentially from Rs 133.66 crore in the quarter ended June 30, 2026, while profit after tax rose from Rs 29.28 crore. Basic earnings per share were Rs 2.83 in the September quarter, versus Rs 2.20 a year earlier and Rs 2.92 in the June quarter. The company stated that quarterly earnings per share are not annualised.

What changed in ESDS Software Solution’s costs and half-year result?

ESDS Software Solution’s total expenses increased 64% year on year to Rs 103.52 crore in the September quarter, exceeding the revenue growth rate. Other expenses rose to Rs 50.78 crore from Rs 17.99 crore, while depreciation and amortisation increased to Rs 19.61 crore from Rs 15.45 crore. Employee-benefit expenses rose to Rs 29.80 crore from Rs 26.99 crore, and finance costs increased to Rs 3.33 crore from Rs 2.81 crore.

For the six months ended September 30, 2026, revenue from operations increased 25% to Rs 271.99 crore from Rs 218.37 crore in the corresponding 2025 period. Half-year profit after tax rose 26% to Rs 60.37 crore from Rs 47.79 crore, while profit before tax increased 13% to Rs 76.60 crore from Rs 67.70 crore. The different growth rates reflect tax expense declining to Rs 16.23 crore from Rs 19.92 crore.

ESDS Software Solution reported a single business segment under Indian Accounting Standard 108, or Ind AS 108, Segment Reporting. The segment covers the design, development, installation and servicing of information-technology-related resources. As the board, acting as chief operating decision-maker, evaluates the group as one segment, the filing does not provide revenue, margin or profit splits by product, customer type or geography.

How did the fresh equity issue change ESDS Software Solution’s financial position?

ESDS Software Solution raised Rs 719.99 crore through a fresh issue of 16,783,216 equity shares at an issue price of Rs 429 each, including securities premium of Rs 428 a share. The equity shares were admitted for dealing on the National Stock Exchange of India Limited’s main board under the direct-listing route from September 4, 2026. The company reported net proceeds of Rs 667.05 crore after issue-related costs.

Paid-up equity share capital rose to Rs 11.72 crore at September 30, 2026 from Rs 10.04 crore at March 31, 2026. Other equity increased to Rs 1,282.28 crore from Rs 533.62 crore, and equity attributable to owners increased to Rs 1,294.00 crore from Rs 543.66 crore. The rise in other equity was broadly consistent with the fresh issue, net of disclosed transaction costs and other movements.

Total assets were Rs 4,109.54 crore at September 30, compared with Rs 1,937.90 crore at the March year-end. Cash and cash equivalents were Rs 1,636.83 crore, up from Rs 1,253.39 crore, while other bank balances were Rs 341.98 crore. The six-month cash-flow statement reported Rs 664.19 crore of net cash from financing activities, including the fresh issue proceeds.

How much of ESDS Software Solution’s issue proceeds had been used?

ESDS Software Solution had used Rs 46.91 crore of the Rs 720.00 crore gross fresh-issue proceeds by September 30, 2026, and disclosed no deviation or variation in their use. Of the amount used, Rs 38.17 crore was for issue expenses and Rs 8.75 crore was for general corporate purposes. The Audit Committee reviewed the utilisation statement on November 2, 2026 and recorded no deviation or variation.

The original allocation includes Rs 576.00 crore to purchase and install cloud-computing equipment and infrastructure for relevant data centres, Rs 91.05 crore for general corporate purposes and Rs 52.95 crore for issue expenses. No amount from the Rs 576.00 crore data-centre allocation had been used at September 30. ESDS Software Solution said that amount is to be deployed according to the schedule in its offer document.

CRISIL Ratings Limited is the monitoring agency for the public issue. The filing showed total utilisation of Rs 46.91 crore against net proceeds of Rs 667.05 crore because the utilisation table is presented against gross proceeds of Rs 720.00 crore and separately identifies issue expenses. The company’s reported issue expenses used by September 30 were Rs 38.17 crore, against an original allocation of Rs 52.95 crore.

How comparable and reviewed are ESDS Software Solution’s quarterly figures?

ESDS Software Solution’s September 2026 consolidated results were approved by its board on November 2, 2026 and were subject to a limited review by its statutory auditors. The auditors issued an unmodified review conclusion. The financial statements were prepared under Ind AS 34, Interim Financial Reporting, and Regulation 33 of the Securities and Exchange Board of India listing regulations.

The September 2025 consolidated quarterly comparative figures were prepared by management and approved by the board, but were neither audited nor limited reviewed, according to the filing. The company said the requirement to submit quarterly consolidated results became applicable from the quarter ended June 30, 2026, following the listing of its equity shares. This means the 47% revenue increase and 41% profit increase use an unaudited, unreviewed comparative quarter.

The consolidated group includes Spochub Solutions Private Limited, ESDS Cloud FZ LLC and ESDS Global Software Solutions Inc. The auditor also referred to one unreviewed subsidiary with total assets of Rs 24.40 lakh at September 30, 2026 and nil revenue, profit and cash flows for both the quarter and six-month period. The auditor stated that this subsidiary was not material to the group.

Conclusion

ESDS Software Solution’s September-quarter result combined 47% revenue growth to Rs 138.34 crore with a 41% increase in profit after tax to Rs 31.09 crore. The half-year figures also rose, with revenue reaching Rs 271.99 crore and profit after tax reaching Rs 60.37 crore, while the fresh issue increased equity attributable to owners to Rs 1,294.00 crore at September 30.

The next disclosed item to watch is deployment of the Rs 576.00 crore allocated for cloud-computing equipment and data-centre infrastructure, none of which had been utilised by September 30, 2026. ESDS Software Solution has said the funds will be deployed according to its offer-document schedule, while its newly appointed Chief Product Officer is tasked with strengthening the Swaraj Platform and leading new products and services.