ESDS Software Solution Limited IPO

ESDS Software Solution Limited IPO closed on 1 Sept 2026. Allotment 2 Sept 2026, listing 4 Sept 2026. Price band ₹408–₹429, lot 34 shares, GMP +₹247 (57.58%). Track allotment on Allotly.

About ESDS Software Solution Limited

ESDS Software Solution is an artificial intelligence (AI)-enabled cloud, managed services, data centre infrastructure, and software solutions provider in India. Its offerings include infrastructure-as-a-service (IaaS), managed services, and software-as-a-service (SaaS). The IaaS portfolio includes colocation and data centre services, public, private, virtual private, hybrid, and community cloud services, cloud computing, and GPU-as-a-Service (GPUaaS). Its managed services include cloud and data centre management, cybersecurity and compliance, IT infrastructure and network management, backup and disaster recovery, database management, DevOps, and automation services. The company operates five data centres in Nashik, Navi Mumbai, Bengaluru, Mohali, and Noida, covering an aggregate area of over 75,266 square feet. Its SaaS portfolio includes data centre management and monitoring software…

Strengths

• The company is stated to be one of the only two players in India offering the entire spectrum of GPU-as-a-Service (GPUaaS), cloud, managed services, data centre infrastructure, and software solutions. It claims the share of customers availing all three service lines increased from 62.32% in FY24 to 79.58% in FY25 and 89.04% in FY26, while its revenue retention rate (RRR) stood at 94.92% in FY26. Revenue retention rate is defined as revenue from existing customers in the current year divided by the revenue from operations of the previous year. Existing customers are entities that have engaged in previous years with the company’s products or services and continue to maintain an active business relationship with ESDS in the current year.
• The company claims to have a comprehensive Security-as-a-Service (SECaaS) framework covering security information and event management (SIEM), endpoint security, vulnerability management and incident response. As of June 30, 2026, it had more than 123 customers and secured over 5,000 devices, while it identified and assessed more than 20,000 vulnerabilities during the period from January 1, 2026 to June 30, 2026.
• The company claims to have long-standing relationships with over 100 banks and other established businesses, including Software Technology Parks of India (STPI). Its total customers increased from 1,465 in FY24 to 1,714 in FY25 and 2,501 in FY26, while the proportion of revenue from customers with relationships of more than three years increased from 49.28% in FY24 to 61.44% in FY25 and 65.60% in FY26.
• The company claims to have established partnerships with government organisations, including STPI, and is a Ministry of Electronics and Information Technology (MeitY) Standardisation Testing and Quality Certification (STQC)-audited and empanelled cloud service provider. Through its collaboration with STPI, it operates Data Centres in Bengaluru, Mohali and Noida and provides localised cloud and Data Centre solutions to public sector entities and enterprises.
• The company claims to hold commercial patents for its SWARAJ software and claims to be the only player in India holding a patent for vertical auto-scaling technology. The US patent was granted in November 2015, while the Indian patents were granted in June and November 2022. The company also claims to have launched a fully managed GPU-as-a-Service (GPUaaS) in November 2025 for AI and machine learning (ML) workloads.
• The company claims to offer multiple billing models, including pay-per-consumption, pay-per-branch, pay-per-transaction, custom consumption metrics, and business key performance indicators (KPIs). It claims that its pay-per-consumption model uses its SWARAJ vertical auto-scaling technology to automatically scale virtual machine resources based on load demand and bill customers based on the resources consumed.
• The company claims to have a workforce of 993 employees as of June 30, 2026, with its core technical teams having experience in cloud computing, cybersecurity, Data Centre infrastructure and enterprise IT solutions. Its Chairman and Managing Director, Piyush Prakashchandra Somani, is stated to have over 20 years of experience in the information technology sector.
• The company has seen a consistent increase in revenue from operations and PAT. Revenue from operations increased from Rs 286.52 crore in FY24 to Rs 361.33 crore in FY25 to Rs 472.21 crore in FY26, while PAT increased from Rs 13.61 crore in FY24 to Rs 55.61 crore in FY25 to Rs 120.82 crore in FY26.

Risks

• The company operates in an industry characterised by rapid technological innovation, evolving industry standards, and changing customer demands. Research and development (R&D) expenses stood at Rs 6.25 crore (1.32% of revenue from operations), Rs 8.24 crore (2.28%) and Rs 12.66 crore (4.42%) in FY26, FY25, and FY24, respectively. Both in terms of absolute numbers and percentage, the figures have been falling over the years, which indicates the company is stepping back in its R&D efforts. Failure to innovate, adapt to technological developments or evolving industry standards could adversely affect the company's business, financial condition and results of operations.
• Revenue directly or indirectly from government entities and government projects stood at Rs 129.26 crore (27.37%), Rs 106.68 crore (29.52%), and Rs 97.53 crore (34.04%) of revenue from operations in FY26, FY25, and FY24, respectively. The numbers are significant, and so any changes in government policies or budgetary allocations, or failure to satisfy eligibility and selection criteria for government contracts, could adversely affect the company's over business and financial condition.
• The company's cloud platform and products involve the storage and transmission of customer data, including personally identifiable information, making it exposed to risks from unauthorised access and security breaches. Any such breach could result in data loss, litigation, fines, penalties, regulatory action, and other liabilities and could adversely affect the company's reputation and financial condition.
• Revenue from the top 10 clients stood at Rs 214.17 crore (45.36%), Rs 178.27 crore (49.34%), and Rs 107.10 crore (37.38%) during FY24, FY25, and FY26. Loss of or reduction in business from these clients could hurt the company's business and finances.
• As of FY26, FY25, and FY24, the value of hypothecated current assets stood at Rs 1,464.54 crore, Rs 240.84 crore, and Rs 176.29 crore, representing 96.72%, 88.96%, and 84.84% of the company's total current assets, respectively. The value of mortgaged property, plant and equipment stood at Rs 59.77 crore, Rs 77.08 crore, and Rs 123.46 crore, representing 18.89%, 27.05%, and 56.62% of total property, plant and equipment, respectively. Total secured borrowings stood at Rs 42.92 crore, Rs 62.71 crore, and Rs 115.44 crore during the same periods. If the company is unable to service its debt obligations on time, it could result in lenders enforcing the security, which could adversely affect the company's business and financial condition.
• Revenue from collaborations with technology and business partners stood at Rs 79.68 crore (16.87%), Rs 80.92 crore (22.39%), and Rs 70.10 crore (24.47%) in FY26, FY25 and FY24, respectively. Any breakdown in relationships with these partners could adversely affect the company's business and financial condition.
• The cost of supplies from the top five suppliers stood at Rs 81.57 crore (37.52%), Rs 119.76 crore (53.05%), and Rs 42.32 crore (34.91%) in FY26, FY25, and FY24, respectively. The company relies on these suppliers for critical information technology infrastructure, including servers, storage, software, security, connectivity, and data centre-related services. Inability to replace key suppliers could adversely affect the company's business, financial condition, results of operations and cash flows.
• The company, its directors and promoters are involved in ongoing material proceedings and tax proceedings. Any adverse judgments in the cases could be detrimental to the company’s business prospects.
• The company has contingent liabilities amounting to Rs 55.17 crore as of FY26. If any of these contingent liabilities materialise, it could harm the company’s financial performance.
• As of FY26, the company’s trade receivables were Rs 102.12 crore. Failure to collect these receivables on time or at all can negatively impact the business and its financial condition.
• As of FY26, the company had outstanding financial indebtedness of Rs 102.92 crore. Failure to service or repay these loans can harm the company’s operations and financial position.

See all IPOs · Apply for your family on Allotly