ESDS Q2 Profit Zooms 41% YoY To ₹31.1 Cr, Revenue Up 48%

Enterprise cloud and AI firm ESDS Software Solution announced a significant surge in profitability for Q2 FY27, with net profit soaring 41% year-over-year to ₹31.1 Cr. This marks a stark contrast to the ₹22.1 Cr reported in the same quarter of the prior fiscal year. Operating revenue also experienced a substantial 48% year-over-year increase, reaching ₹138.3 Cr.

Notably, on a sequential basis, the company's top line rose 4% from ₹133 Cr in Q1 FY27, while profit expanded by 6.2% from ₹29.3 Cr. ESDS's EBITDA exhibited robust growth of 18.3% year-over-year to ₹57.8 Cr, with an impressive EBITDA margin of 41.8%. Profit after tax (PAT) margin stood at a commendable 22.5%. The company disclosed ₹2.3 Cr in IPO-related marketing and advertising expenses incurred during the quarter.

Excluding this expense, ESDS projected an EBITDA of ₹60.1 Cr and a profit before tax of ₹42.5 Cr for the period. ESDS' revenue was driven primarily by three segments: Infrastructure-as-a-Service (IaaS) at 50.5%, Managed Services at 31.2%, and Software-as-a-Service (SaaS) at 18.3%. Existing customers accounted for a substantial 86.7% of the company's revenue during the quarter.