ESDS top 50 supplied 74% of FY26 revenue as Russian BFSI fell

ESDS Software Solution Limited derived Rs 348.291 crore, or 73.76%, of FY26 revenue from operations from its 50 largest customers. The share fell from 76.15% in FY25, while revenue from a Russian banking, financial services and insurance customer declined to Rs 13.241 crore, or 2.80% of FY26 sales, from 20.15% in FY25.

How concentrated was ESDS revenue in FY26?

ESDS had substantial customer concentration in FY26 because its top 50 customers provided nearly three quarters of revenue from operations. The group generated Rs 348.291 crore from those customers against total operating revenue of Rs 472.210 crore in the year ended March 31, 2026. Customers outside the top 50 therefore provided Rs 123.919 crore, or 26.24%, based on the disclosed top-50 share.

ESDS attributed the increase in top-50 revenue from FY24 to FY26 partly to long-term contracts with government institutions and established enterprises. Its cooperative-banking offering uses a pay-per-branch billing model, while other arrangements include pay-per-transaction and pay-per-consumption models. Revenue concentration will continue to depend on customer retention, service usage and the continuation of these contractual and consumption-based arrangements.

How did ESDS top-50 customer concentration change over three years?

ESDS increased revenue from its top 50 customers in each of FY24, FY25 and FY26, but their share of sales did not rise consistently. Top-50 revenue increased 39.18% from Rs 197.693 crore in FY24 to Rs 275.147 crore in FY25, then rose 26.58% to Rs 348.291 crore in FY26. The corresponding share of operating revenue rose 7.15 percentage points to 76.15% in FY25 before declining 2.39 percentage points to 73.76% in FY26.

Average revenue per top-50 customer rose to Rs 6.966 crore in FY26, from Rs 5.503 crore in FY25 and Rs 3.954 crore in FY24. ESDS defines this measure as cumulative revenue from its 50 largest customers divided by 50, meaning it is an annual average for that revenue-ranked group. The company said new top customers, its hybrid product offering and customer servicing contributed to higher revenue from operations between FY24 and FY26.

How far did ESDS Russian BFSI customer revenue decline in FY26?

ESDS’s Russian banking, financial services and insurance, or BFSI, customer became much less material in FY26 after making a large contribution in FY25. ESDS began serving the customer, which is incorporated in Russia, in FY24. Revenue from the Russian BFSI customer fell from Rs 72.808 crore, or 20.15% of FY25 operating revenue, to Rs 13.241 crore, or 2.80% of FY26 operating revenue.

The disclosed decline covered infrastructure as a service, or IaaS, and software as a service, or SaaS. Russian BFSI revenue within IaaS declined 85.07% to Rs 7.493 crore in FY26 from Rs 50.192 crore in FY25, while SaaS revenue from the customer fell 79.87% to Rs 1.825 crore from Rs 9.063 crore. ESDS also identified Rs 13.553 crore of FY25 managed-services revenue from this customer, so its FY25 contribution affected all three reported service categories.

Which services supported ESDS revenue growth in FY26?

Managed services supported ESDS’s FY26 revenue growth despite the reduced Russian BFSI contribution and a decline in SaaS revenue. Revenue from operations increased 30.68% to Rs 472.210 crore in FY26 from Rs 361.335 crore in FY25. Managed-services revenue rose 157.22% to Rs 194.591 crore, whereas IaaS revenue increased 1.75% to Rs 207.197 crore and SaaS revenue declined 14.17% to Rs 70.422 crore.

A new enterprise customer incorporated outside India generated Rs 75.240 crore in FY26, equal to 15.93% of operating revenue. ESDS said this customer largely drove a 575.04% increase in new-customer managed-services revenue, from Rs 16.567 crore in FY25 to Rs 111.833 crore in FY26. Existing-customer IaaS revenue also rose 31.12% to Rs 194.235 crore, while new-customer IaaS revenue declined 76.65% to Rs 12.962 crore.

The service mix changed between FY25 and FY26. IaaS declined to 43.88% of FY26 operating revenue from 56.36% in FY25, while managed services increased to 41.21% from 20.94%. SaaS declined to 14.91% from 22.71%, showing that FY26 sales growth was led by managed services and included a sizeable contribution from a new overseas enterprise customer.

What collection mechanisms matter for ESDS customer concentration?

ESDS recognises hosting, design, implementation and support-service revenue when it satisfies contractual performance obligations. For usage-based arrangements, revenue is recognised at the amount ESDS has a right to invoice and customers are invoiced monthly. For fixed-price contracts, service revenue is recognised by reference to services delivered, measured through actual man-hours relative to total expected man-hours.

Billed trade receivables were Rs 102.126 crore at March 31, 2026, compared with Rs 99.756 crore a year earlier, while unbilled trade receivables increased to Rs 63.393 crore from Rs 43.728 crore. ESDS said the billed-receivables increase reflected higher revenue, lower collections during the period and a higher outstanding closing balance. The company applies a lifetime expected-credit-loss model to receivables using customer risk profiles, historical credit losses and forward-looking information.

ESDS’s expected credit-loss allowance declined 75.45% to Rs 2.437 crore in FY26 from Rs 9.927 crore in FY25. The company attributed the decrease primarily to better trade-receivable collections during FY26. For concentrated revenue to translate into cash collections, customer payment performance and the contractual timing of billing and service delivery remain relevant under ESDS’s stated revenue-recognition policy.

Conclusion

ESDS combined higher top-50 customer revenue with a lower concentration ratio in FY26, as the top 50 supplied 73.76% of sales compared with 76.15% in FY25. The Russian BFSI customer’s share fell from 20.15% to 2.80%, while managed-services growth and Rs 75.240 crore from a new overseas enterprise customer helped lift FY26 operating revenue to Rs 472.210 crore.

The disclosed new enterprise customer and its new graphics processing unit as a service contract are the next items to watch. ESDS said cash and cash equivalents reached Rs 1,253.385 crore at March 31, 2026, primarily because it received an advance from that customer for the contract; future revenue recognition depends on the delivery of contractual performance obligations.