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Earnings Call Transcript

ESDS Software Solution Earnings Call Transcript: Key Takeaways

ESDS reported moderate YoY growth driven by Cloud Infrastructure, but faced a significant 20% QoQ revenue decline due to non-recurring design service income in the previous quarter.

Guidance and delivery
Management target Net Profit 20.0% FY27
Highlights
Revenue growth7.28% YoY growth; 20.2% QoQ decline due to one-time design revenue.
MarginsTargeting 15-20% PAT margins for international GPU leasing deals.
Order book₹3,000 Cr domestic order book over 3 years; international much larger.
Demand visibilityStrong global demand for AI; domestic picking up slower.
Management confidenceAggressive on AI infrastructure expansion but defensive regarding QoQ revenue dips.

Growth

Revenue grew 7.28% YoY; however, margins remain dependent on high-margin SaaS vs capital-intensive IaaS.

Outlook

Management targets 1,500 GPUs by Q4 FY27 and 15-20% PAT margins on international AI deals.

Risks

Heavy reliance on the Sharon AI deal; execution delays in GPU deployment already pushed revenue into Q3.

Source

Earnings Call Transcript filed with NSE, NSE: ESDS. Summary written with AI assistance from the document.

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ESDS Software Solution Ltd: key numbers

Share price
₹1,760.50
Market cap
₹20,635 Cr
Revenue (annual)
₹472.2 Cr
Net profit (annual)
₹120.3 Cr
Promoter holding
39.47%
FII holding
1.01%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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