{"id":14633,"date":"2026-08-28T09:52:45","date_gmt":"2026-08-28T09:52:45","guid":{"rendered":"https:\/\/www.incredmoney.com\/blog\/?p=14633"},"modified":"2026-08-31T09:57:43","modified_gmt":"2026-08-31T09:57:43","slug":"esds-software-solution-ipo","status":"publish","type":"post","link":"https:\/\/www.incredmoney.com\/blog\/esds-software-solution-ipo\/","title":{"rendered":"ESDS Software Solution IPO: Fueling the AI Boom"},"content":{"rendered":"<p><em>ESDS Software Solution, is filing a \u20b9720 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.<\/em><\/p>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"ipo-summary\">IPO Summary<\/h2>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img fetchpriority=\"high\" decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!45-l!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png 1456w\" alt=\"\" width=\"1456\" height=\"1113\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1113,&quot;width&quot;:1456,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:133063,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:false,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https:\/\/ipoanalysis.substack.com\/i\/212992531?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F30d8b6ec-ac3d-4f36-93b3-c74e802798b7_1680x1284.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"the-big-picture\">The Big Picture<\/h2>\n<div class=\"pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent\"><\/div>\n<p>The Indian cloud GPU market is projected to grow from USD 67 million in FY25 to USD 514 million by FY30, a\u00a0<mark data-color=\"#ffe599\">CAGR of about 50%.<\/mark><\/p>\n<p style=\"text-align: center;\"><em>(We all know who to thank for it )<\/em><\/p>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!C4gL!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png 1456w\" alt=\"\" width=\"581\" height=\"271.5817655571635\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/f5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:323,&quot;width&quot;:691,&quot;resizeWidth&quot;:581,&quot;bytes&quot;:244213,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:&quot;image\/png&quot;,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:&quot;https:\/\/ipoanalysis.substack.com\/i\/212992531?img=https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Ff5f6d038-6d66-4117-99a4-7d08fa9c32e1_691x323.png&quot;,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<p>ESDS operates across three related markets in India: data centres, cloud services and managed services.<\/p>\n<p>With\u00a0<mark data-color=\"#ffe599\">only two companies in India offering the full range<\/mark>\u00a0of GPU-as-a-service, cloud, managed services, data centre infrastructure and software solutions,\u00a0<mark data-color=\"#ffe599\">ESDS is the biggest peer based on FY26 revenue.<\/mark><\/p>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"business-model\">Business Model<\/h2>\n<div class=\"pencraft pc-display-flex pc-alignItems-center pc-position-absolute pc-reset header-anchor-parent\"><\/div>\n<p>ESDS is an AI-enabled cloud, managed services, data centre infrastructure and software solutions provider, and has served\u00a0<strong>2,501 customers in FY26<\/strong>\u00a0across diverse industries.<\/p>\n<p><strong>The business runs on three revenue lines:<\/strong><\/p>\n<p>1.\u00a0<mark data-color=\"#ffe599\">Infrastructure as a service (IaaS)<\/mark>\u00a0covers colocation, data centre services, and cloud computing.<\/p>\n<p>2.\u00a0<mark data-color=\"#ffe599\">Managed services<\/mark>, which cover day-to-day management of a customer\u2019s IT and cloud environment.<\/p>\n<p>3.\u00a0<mark data-color=\"#ffe599\">Software as a service (SaaS)<\/mark>, which includes data centre management tools, vulnerability scanners and web firewalls.<\/p>\n<p>ESDS runs five data centres, in Nashik, Navi Mumbai (Airoli), Bengaluru, Mohali, and Noida<\/p>\n<p>Noida data centre came online in October 2025 <mark data-color=\"#ffe599\">with two more data centres planned in Kolkata and Sahibabad.<\/mark><\/p>\n<p>The company\u2019s cloud platform, SWARAJ Cloud, uses a patented\u00a0<em>(in both the United States and India)<\/em>\u00a0auto-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.<\/p>\n<h3 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"important-deals-shaping-the-company\">Important deals shaping the company<\/h3>\n<ul>\n<li>In FY26, ESDS signed a strategic AI cloud infrastructure agreement with an Australia-based neocloud AI compute provider, worth about<mark data-color=\"#ffe599\">\u00a0<\/mark><strong><mark data-color=\"#ffe599\">USD 1,250 million (\u20b911,831 Cr) over an initial five-year term<\/mark><\/strong>, extendable by two years.<\/li>\n<li>Separately, ESDS\u2019s subsidiary SPOCHUB Solutions Private Limited has secured a GPU-as-a-service contract with an overseas enterprise customer and\u00a0<mark data-color=\"#ffe599\">has already received an advance of \u20b91,177 Cr against it.<\/mark><\/li>\n<\/ul>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"unit-economics\">Unit Economics<\/h2>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!lAYK!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png 1456w\" alt=\"\" width=\"591\" height=\"525.6490384615385\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/00b90e59-c7c4-4f8f-bd95-c5005f05a707_2048x1821.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1295,&quot;width&quot;:1456,&quot;resizeWidth&quot;:591,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<ul>\n<li>Profit per customer rose nearly 5x, from ~\u20b91 Lakh in FY24 to ~\u20b95 Lakh in FY26, while revenue per customer was slightly lower over the same period.<\/li>\n<li><mark data-color=\"#ffe599\">The gain came from cost control, not pricing.<\/mark>\u00a0Employee cost per customer fell 28% and other operating expenses per customer fell 21% between FY24 and FY26, while revenue per employee rose 81% from \u20b926 Lakh to \u20b948 Lakh.<\/li>\n<\/ul>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"operating-metrics\">Operating Metrics<\/h2>\n<ul>\n<li><strong><mark data-color=\"#ffe599\">Customer Base and Retention:<\/mark>\u00a0<\/strong>Customers grew from 1,465 to 2,501 over two years, a CAGR of 31%, while average revenue per customer (ARPU) has stayed range-bound.<\/li>\n<\/ul>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!Lwju!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fd347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png 1456w\" alt=\"\" width=\"596\" height=\"368.52666666666664\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/d347cad7-e383-4d5f-918f-24b47a7df89c_600x371.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:371,&quot;width&quot;:600,&quot;resizeWidth&quot;:596,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div><figcaption class=\"image-caption\">Source: RHP<\/figcaption><\/figure>\n<\/div>\n<ul>\n<li><strong><mark data-color=\"#ffe599\">Revenue Mix<\/mark><\/strong><mark data-color=\"#ffe599\">:\u00a0<\/mark>Managed services jumped from 21% of revenue in FY25 to 41% in FY26 on one large new enterprise contract worth \u20b975.24 Cr from a new customer outside India.<\/li>\n<\/ul>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!j6ws!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2Fc2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png 1456w\" alt=\"\" width=\"600\" height=\"371\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/c2312e5b-7304-4321-823b-b86dfc1fc278_600x371.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:371,&quot;width&quot;:600,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div><figcaption class=\"image-caption\">Source: RHP<\/figcaption><\/figure>\n<\/div>\n<ul>\n<li><strong><mark data-color=\"#ffe599\">Revenue Mix by Customer Industry:<\/mark>\u00a0<\/strong>Enterprise customers rose from 40% of revenue in FY25 to 55% in FY26, the single biggest shift in the customer mix. BFSI\u2019s share dropped sharply, from 31% to 18%, largely because a sanctioned Russian BFSI client\u2019s revenue fell from \u20b973 Cr in FY25 to \u20b913 Cr in FY26.<\/li>\n<\/ul>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!gamf!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png 1456w\" alt=\"\" width=\"600\" height=\"371\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/919f4d0b-f7aa-4288-bbb5-77bc61ef048b_600x371.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:371,&quot;width&quot;:600,&quot;resizeWidth&quot;:null,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div><figcaption class=\"image-caption\">Source: RHP<\/figcaption><\/figure>\n<\/div>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"the-financial-stuff-from-revenue-to-pat\">The Financial Stuff: From Revenue to PAT<\/h2>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!anaj!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png 1456w\" alt=\"\" width=\"597\" height=\"497.3633241758242\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/479a4eb1-d04f-41bd-a7f4-aab0bc1f6533_1680x1400.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:1213,&quot;width&quot;:1456,&quot;resizeWidth&quot;:597,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<ul>\n<li>Revenue grew at a CAGR of 28% between FY24 and FY26, from \u20b9287 Cr to \u20b9472 Cr, but PAT grew far faster, from \u20b914 Cr to \u20b9121 Cr, close to a 9x increase.<\/li>\n<\/ul>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"esds-peers\">ESDS\u2019 Peers<\/h2>\n<div class=\"captioned-image-container\">\n<figure>\n<div class=\"image2-inset\"><picture><source srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_424,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_848,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_1272,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_1456,c_limit,f_webp,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png 1456w\" type=\"image\/webp\" sizes=\"100vw\" \/><img decoding=\"async\" class=\"sizing-normal\" src=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png\" sizes=\"100vw\" srcset=\"https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_424,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png 424w, https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_848,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png 848w, https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_1272,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png 1272w, https:\/\/substackcdn.com\/image\/fetch\/$s_!oXyn!,w_1456,c_limit,f_auto,q_auto:good,fl_progressive:steep\/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F19b55446-0786-4a84-a11d-527705ec2983_1600x904.png 1456w\" alt=\"\" width=\"599\" height=\"338.5831043956044\" data-attrs=\"{&quot;src&quot;:&quot;https:\/\/substack-post-media.s3.amazonaws.com\/public\/images\/19b55446-0786-4a84-a11d-527705ec2983_1600x904.png&quot;,&quot;srcNoWatermark&quot;:null,&quot;fullscreen&quot;:null,&quot;imageSize&quot;:null,&quot;height&quot;:823,&quot;width&quot;:1456,&quot;resizeWidth&quot;:599,&quot;bytes&quot;:null,&quot;alt&quot;:null,&quot;title&quot;:null,&quot;type&quot;:null,&quot;href&quot;:null,&quot;belowTheFold&quot;:true,&quot;topImage&quot;:false,&quot;internalRedirect&quot;:null,&quot;isProcessing&quot;:false,&quot;align&quot;:null,&quot;offset&quot;:false}\" \/><\/picture><\/div>\n<\/figure>\n<\/div>\n<ul>\n<li><mark data-color=\"#ffe599\">ESDS is nearly twice the size of E2E Networks by FY26 revenue and is solidly profitable<\/mark>, with a 23% RoNW against E2E Networks\u2019 negative RoNW of -1%.<\/li>\n<\/ul>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"key-risks\">Key Risks<\/h2>\n<p><strong>Customer concentration.<br \/>\n<\/strong>Due to Russian international sanctions, revenue from that entity fell from \u20b973 Cr (20% of revenue) to \u20b913 Cr (3%) in FY26. The loss or reduction of business from any major client could materially affect the company.<\/p>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"use-of-proceeds\">Use of Proceeds<\/h2>\n<p>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.<\/p>\n<h2 class=\"header-anchor-post\" class=\"header-anchor-post\" id=\"conclusion\">Conclusion<\/h2>\n<p>ESDS is the larger of India\u2019s 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.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>ESDS Software Solution, is filing a \u20b9720 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 [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":14634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[59],"tags":[2],"class_list":["post-14633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","tag-blog"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>ESDS Software Solution IPO: Review, Financials, Business &amp; Risks | InCred Money<\/title>\n<meta name=\"description\" content=\"Explore the ESDS Software Solution IPO, including its business model, financial performance, unit economics, operating metrics, peers and key investment risks at InCred Money\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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