ESDS Software Shares Hit 5% Lower Circuit After Q1 Profit Falls 57% QoQ
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ESDS Software shares had gained more than 330% from their ₹429 IPO price after hitting a record ₹1,859.20 on September 24. The stock came under pressure the following day after the company reported its June-quarter results.
ESDS Software Solution shares fell 5% to ₹1,760.50 on Friday, September 25, after the recently listed cloud and data-centre services company reported its June-quarter results. The decline came a day after the stock touched a record high of ₹1,859.20 during Thursday’s session.
The stock had closed at ₹1,853.15 on September 24 after gaining 4.66%, taking its market capitalisation to around ₹21,700 crore. Despite Friday’s fall, ESDS Software remained well above its ₹429 IPO price and its ₹757 NSE listing price on September 4.
The selling followed the company’s Q1 FY27 results, with consolidated net profit falling 56.7% quarter-on-quarter to ₹29.3 crore from ₹67.7 crore in the March quarter. Operating revenue declined 20.2% sequentially to ₹133.7 crore from ₹167.5 crore. On a year-on-year basis, however, net profit rose 14% from ₹25.7 crore, while operating revenue increased 7.3% from ₹124.6 crore.
ESDS Software Q1 results
The June-quarter results were approved by the board on September 24. The company had informed the exchanges earlier that week about the board meeting.
According to the exchanges as informed by the company, “The meeting of Board of Directors of the company is scheduled to be held on Thursday, September 24, 2026, to consider and approve standalone and consolidated financial results of the company for the quarter ended June 30, 2026.”
The sequential decline came despite year-on-year growth in the June quarter. Consolidated profit increased to ₹29.28 crore from ₹25.69 crore a year earlier, while sales rose 7.28% to ₹133.66 crore from ₹124.59 crore.
The sharp quarter-on-quarter movement also came after ESDS Software had reported ₹67.7 crore in consolidated net profit and ₹167.5 crore in operating revenue in the March quarter.
ESDS Software shares after IPO listing
ESDS Software made its NSE debut on September 4 at ₹757, against an IPO price of ₹429. The stock has since traded sharply higher, reaching ₹1,859.20 on September 24, its record high. At that level, the stock was more than four times its IPO price.
The company had raised ₹720 crore through its IPO, including a fresh issue aimed largely at funding cloud computing equipment and data-centre infrastructure. Of the proceeds, ₹576 crore was earmarked for these infrastructure requirements.
ESDS Software has also received approval to extend the deadline for its FY2025-26 Annual General Meeting. The AGM can now be held on or before November 30, 2026, instead of September 30.
“The company may now hold its AGM for FY 2025-26 on or before November 30, 2026, instead of September 30, 2026. The date, time and mode of the AGM, and the record date or book closure (if applicable), will be announced to the exchanges in due course,” ESDS Software informed the exchanges. The company’s investor-relations page also lists the AGM extension approval among its statutory disclosures.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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