ESDS Software Solution, is filing a ₹720 Cr IPO on August 28, 2026. ESDS runs its business out of just five data centres and it is the larger of only two companies in India offering the full stack of cloud, GPU-as-a-service, data centre infrastructure and software solutions.
IPO Summary
The Big Picture
The Indian cloud GPU market is projected to grow from USD 67 million in FY25 to USD 514 million by FY30, a CAGR of about 50%.
(We all know who to thank for it )
ESDS operates across three related markets in India: data centres, cloud services and managed services.
With only two companies in India offering the full range of GPU-as-a-service, cloud, managed services, data centre infrastructure and software solutions, ESDS is the biggest peer based on FY26 revenue.
Business Model
ESDS is an AI-enabled cloud, managed services, data centre infrastructure and software solutions provider, and has served 2,501 customers in FY26 across diverse industries.
The business runs on three revenue lines:
1. Infrastructure as a service (IaaS) covers colocation, data centre services, and cloud computing.
2. Managed services, which cover day-to-day management of a customer’s IT and cloud environment.
3. Software as a service (SaaS), which includes data centre management tools, vulnerability scanners and web firewalls.
ESDS runs five data centres, in Nashik, Navi Mumbai (Airoli), Bengaluru, Mohali, and Noida
Noida data centre came online in October 2025 with two more data centres planned in Kolkata and Sahibabad.
The company’s cloud platform, SWARAJ Cloud, uses a patented (in both the United States and India) auto-scaling technology and was among the first in India to offer community cloud services, a shared model now used by 104 government clients, 115 banks and financial institutions, and six smart cities as of June 2026.
Important deals shaping the company
- In FY26, ESDS signed a strategic AI cloud infrastructure agreement with an Australia-based neocloud AI compute provider, worth about USD 1,250 million (₹11,831 Cr) over an initial five-year term, extendable by two years.
- Separately, ESDS’s subsidiary SPOCHUB Solutions Private Limited has secured a GPU-as-a-service contract with an overseas enterprise customer and has already received an advance of ₹1,177 Cr against it.
Unit Economics
- Profit per customer rose nearly 5x, from ~₹1 Lakh in FY24 to ~₹5 Lakh in FY26, while revenue per customer was slightly lower over the same period.
- The gain came from cost control, not pricing. Employee cost per customer fell 28% and other operating expenses per customer fell 21% between FY24 and FY26, while revenue per employee rose 81% from ₹26 Lakh to ₹48 Lakh.
Operating Metrics
- Customer Base and Retention: Customers grew from 1,465 to 2,501 over two years, a CAGR of 31%, while average revenue per customer (ARPU) has stayed range-bound.
- Revenue Mix: Managed services jumped from 21% of revenue in FY25 to 41% in FY26 on one large new enterprise contract worth ₹75.24 Cr from a new customer outside India.
- Revenue Mix by Customer Industry: Enterprise customers rose from 40% of revenue in FY25 to 55% in FY26, the single biggest shift in the customer mix. BFSI’s share dropped sharply, from 31% to 18%, largely because a sanctioned Russian BFSI client’s revenue fell from ₹73 Cr in FY25 to ₹13 Cr in FY26.
The Financial Stuff: From Revenue to PAT
- Revenue grew at a CAGR of 28% between FY24 and FY26, from ₹287 Cr to ₹472 Cr, but PAT grew far faster, from ₹14 Cr to ₹121 Cr, close to a 9x increase.
ESDS’ Peers
- ESDS is nearly twice the size of E2E Networks by FY26 revenue and is solidly profitable, with a 23% RoNW against E2E Networks’ negative RoNW of -1%.
Key Risks
Customer concentration.
Due to Russian international sanctions, revenue from that entity fell from ₹73 Cr (20% of revenue) to ₹13 Cr (3%) in FY26. The loss or reduction of business from any major client could materially affect the company.
Use of Proceeds
A major portion of the fresh issue is going to be used to purchase and install cloud computing equipment and infrastructure at the Airoli, Bengaluru, Mohali and Nashik data centres over FY27 and FY28.
Conclusion
ESDS is the larger of India’s only two full-spectrum cloud, managed services, data centre and software providers, and its FY24 to FY26 numbers show revenue growth alongside margin expansion and debt reduction.
