ESDS Stock Emerges As Second-Best New Listing After 302% Surge From IPO Price
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ESDS shares gained 302% from its ₹429 IPO issue price, making it India’s second-best new listing in terms of first-month returns. The company’s planned ₹570 crore capital expenditure has also put its growth outlook in focus.
ESDS Software Solution Limited has emerged as India’s second-best new listing, with the ESDS stock gaining 302% from its initial public offering (IPO) issue price of ₹429 apiece.
The company was listed on 4 September 2026 and has since attracted investor attention around India’s cloud, data centre and AI infrastructure markets.
ESDS ranked second in terms of first-month returns among new listings, behind Paras Defence, which gained 430% from its IPO price over the same period.
On the National Stock Exchange (NSE), ESDS Software Solution shares were trading at ₹1,811.05 as of 10:59 am on 23 September 2026, up 5% from the previous close of ₹1,724.85. The stock opened at ₹1,724.85 and touched a high of ₹1,811.05, while the day’s low stood at ₹1,706.45.
The ESDS stock has rallied amid expectations that India’s underpenetrated cloud market can provide a long-term growth opportunity, with AI adding another layer of demand.
ESDS’ Sharon AI Contract And Its Details
ESDS has an AI infrastructure contract worth $1.25 billion with Sharon AI.
The Sharon AI contract includes deployment of 8,208 NVIDIA B300 graphics processing units (GPUs). This could increase ESDS’ GPU computing capacity from 81 teraflops to 2,481 teraflops.
The contract is expected to provide five-year revenue visibility. However, the execution, deployment and customer monetisation will remain important for converting the contract’s headline value into sustained earnings.
ESDS Capex Plan And Projected Financials
The company plans ₹570 crore of capital expenditure, with 70% of the spending front-loaded into fiscal 2027. The investment is intended to build the required local data centre infrastructure and expand its data centre capacity.
The agreement is seen as a potential turning point for the company, with revenue projected to rise from ₹470 crore in fiscal 2026 to ₹2,260 crore in fiscal 2027 and ₹4,580 crore in fiscal 2028.
ESDS’ earnings before interest, tax, depreciation and amortisation (EBITDA) is estimated to increase from ₹230 crore in fiscal 2026 to ₹940 crore in fiscal 2028. The EBITDA margin is projected to reach 20.6% by fiscal 2028.
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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
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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