ESDS Software Solution544898Quarterly results

Q2FY27 results: revenue from operations up 48% YoY, PAT up 40.7% YoY; HIFY27 revenue up 25%

Q2FY27 revenue from operations ₹1,383.4 million, up 48% YoY.

By ScoutQuest · Mon 2 Nov 2026, 5:05 PM IST · 3 min read

Q2FY27 Revenue from Operations: ₹1,383.4 million, up 48% YoY
Q2FY27 PAT: ₹310.9 million, up 40.7% YoY
EBITDA Margin: 41.8%

Quarter and half-year numbers

ESDS reported revenue from operations of ₹1,383.4 million for Q2FY27, a growth of 4% on a QoQ basis and 48% on a YoY basis. EBITDA stood at ₹577.6 million, a growth of 18.3% YoY with a margin of 41.8%. Profit After Tax (PAT) stood at ₹310.9 million, a growth of 40.7% YoY with a margin of 22.5%. EPS stood at ₹2.83 for Q2FY27 as compared to ₹2.92 for Q1FY27.

For HIFY27, revenue from operations stood at ₹2,720.0 million, a growth of 25.0% on a YoY basis. EBITDA stood at ₹1,137.5 million, a growth of 12.3% YoY with a margin of 41.8%. PAT stood at ₹603.7 million, a growth of 26.3% YoY with a margin of 22.2%. EPS stood at ₹5.49 for HIFY27 as compared to ₹4.76 for HIFY26.

Revenue mix and customer base

Infrastructure as a Service (IaaS) contributed 50.5% of the revenues.
Managed Services (MS) contributed 31.2% of the revenues.
Software as a Service (SaaS) contributed 18.3% of the revenues.
Existing customers contributed 86.7% of the revenues.

One-time IPO expense

IPO expense of ₹23.4 million related to marketing and advertising is debited to expenses in Q2FY27. If the same were not incurred, profit before tax would have been ₹789.4 million for HIFY27 and ₹424.7 million for Q2FY27. Subsequently, EBITDA for HIFY27 would have been ₹1,161.0 million and Q2FY27 would have been ₹601.0 million.

What the company highlighted

Launched SWARAJ Cloud, described as an AI-autonomous sovereign cloud platform built in India, bringing together 52+ integrated services across cloud infrastructure, AI and GPU computing, cybersecurity and managed services, with a "Prompt to Production" capability.
Launched SWARAJ Nandi (Privileged Access Management), SWARAJ Hansa (AI-powered Agentic SIEM) and SWARAJ Sethu (Unified DevSecOps Platform); the HIFY27 highlights also list SWARAJ Garuda (Application Performance Monitoring) and SWARAJ Jatayoo (Database Activity Monitoring).
Appointed Mr. Sushil Kadu as Chief Product Officer to drive product innovation around the SWARAJ Cloud platform.
Received rating upgrades from CRISIL Ratings and India Ratings & Research, with long-term ratings upgraded to CRISIL A-/Positive and IND A-/Stable respectively.

Management commentary

Chairman & Managing Director Piyush Somani said the quarter reflects sustained customer demand and deeper engagement across key segments. He referred to industry estimates that approximately US$5.2 trillion will need to be invested in AI-ready data centres globally by 2030, and that global data-centre discrete GPU revenue alone is projected to exceed US$51 billion by 2028.

Chief Financial Officer Nadukuru Sita Ramaiah said the quarter reflects focus on financial discipline, operational efficiency and sustainable growth, with revenue streams spread across Infrastructure-as-a-Service, Managed Services and Software-as-a-Service.

How to read this

Revenue and profit are shown growing year on year in both the quarter and the half year, alongside EBITDA margins of 41.8% in each period. The company also sets out what profit before tax and EBITDA would have been without the ₹23.4 million IPO-related marketing and advertising expense, which allows a like-for-like view. The platform launches, the Chief Product Officer appointment and the rating upgrades are business developments described in the release.

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