ESDS Software Solution Limited is launching a ₹720 crore IPO from August 28 to September 1, 2026, at a price band of ₹408 to ₹429 per share. The issue is entirely a fresh issue, with no Offer for Sale component, and the proceeds will primarily be used to expand data centre infrastructure and build AI and cloud computing capacity. The company has reported strong financial growth, with FY2026 revenue from operations rising 30.7% year-on-year to ₹472.21 crore and profit after tax increasing 117% to ₹120.82 crore.
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Table of Contents
- ESDS Software Solution IPO Details
- ESDS Software Solution Company Profile
- ESDS Software Financial Performance
- ESDS Software IPO Valuation and Peer Comparison
- Use of ESDS Software IPO Proceeds
- ESDS Software IPO Investor Quotas
- ESDS Software IPO GMP and Listing Expectations
- Strengths of ESDS Software Solution IPO
- Risks and Challenges
- ESDS Software IPO Review: Retail vs HNI Strategy
- Important ESDS Software IPO Dates
- ESDS Software IPO Verdict: Apply or Skip?
- Conclusion
- ESDS Software IPO FAQs
The ESDS Software IPO is a ₹720 crore book-built issue comprising entirely of fresh shares. Since there is no OFS component, the IPO proceeds will go to the company rather than existing shareholders.
| IPO Parameter |
Details |
| Issuer |
ESDS Software Solution Limited |
| Issue Type |
100% Fresh Issue, No OFS |
| Issue Size |
₹720 crore |
| Price Band |
₹408 to ₹429 per share |
| Face Value |
₹1 per share |
| Lot Size |
34 shares |
| Minimum Retail Investment |
₹14,586 at ₹429 |
| IPO Open Date |
August 28, 2026 |
| IPO Close Date |
September 1, 2026 |
| Anchor Investor Bidding |
August 27, 2026 |
| Allotment |
September 2, 2026 |
| Refund / Demat Credit |
September 3, 2026 |
| Listing Date |
September 4, 2026 |
| Listing Exchanges |
BSE and NSE |
At the upper price band of ₹429, a retail investor needs to invest ₹14,586 for one lot of 34 shares. Retail investors can apply for additional lots in multiples of 34 shares.
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Get all the latest updates on the ESDS Software IPO, including price band, issue size, subscription dates, allotment details and listing information.
ESDS Software Solution, incorporated in 2005 and headquartered in Nashik, Maharashtra, operates in enterprise cloud, managed services and data centre infrastructure. Its offerings include Infrastructure as a Service (IaaS), colocation, cloud computing, managed services and SaaS solutions.
The company primarily serves regulated and enterprise-oriented sectors such as banking, financial services and insurance (BFSI), government organisations and large corporates. This diversified customer base spans both public and private enterprises.
ESDS Data Centre Infrastructure
ESDS currently operates five proprietary data centres located in:
- Nashik
- Navi Mumbai
- Bengaluru
- Mohali
- Noida
The company plans to expand its physical infrastructure through new data centres in Kolkata and Sahibabad. It also intends to increase GPU, server and storage capacity at its existing facilities.
$1.25 Billion AI Infrastructure Deal
A key development for ESDS Software Solution came in March 2026, when the company signed a five-year, $1.25 billion deal with an Australia-based AI neocloud provider. Under the agreement, ESDS is expected to deploy 8,208 NVIDIA B300 GPUs.
The planned deployment strengthens the company's positioning in AI infrastructure and provides future revenue visibility. However, successful execution of the agreement remains an important factor for the company's future performance.
ESDS is therefore positioned as an early listed pure-play data centre and AI infrastructure company in India, with its growth strategy linked to increasing cloud adoption, AI compute requirements and data localisation.
ESDS Software Solution has reported significant improvement in both revenue and profitability over FY2024 to FY2026. Revenue from operations increased from ₹286.52 crore in FY2024 to ₹472.21 crore in FY2026, representing a CAGR of approximately 28.4%.
At the same time, EBITDA increased at a considerably faster pace, while PAT rose sharply over the period.
FY2024 Financial Performance
| Metric |
FY2024 |
| Total Income |
₹292.14 crore |
| Revenue from Operations |
₹286.52 crore |
| EBITDA |
₹101.88 crore |
| EBITDA Margin |
35.6% |
| PAT |
₹13.61 crore |
| Basic EPS |
~₹1.36 |
FY2025 Financial Performance
| Metric |
FY2025 |
| Total Income |
₹376.64 crore |
| Revenue from Operations |
₹361.33 crore |
| EBITDA |
₹154.89 crore |
| EBITDA Margin |
41.1% |
| PAT |
₹55.61 crore |
| Basic EPS |
~₹5.56 |
FY2026 Financial Performance
| Metric |
FY2026 |
| Total Income |
₹480.65 crore |
| Revenue from Operations |
₹472.21 crore |
| EBITDA |
₹234.23 crore |
| EBITDA Margin |
49.1% |
| PAT |
₹120.82 crore |
| Basic EPS |
~₹12.03 |
The FY2024 revenue from operations of ₹286.52 crore is equivalent to ₹2,865.18 million, as per the RHP extracts.
Revenue Growth
Revenue from operations grew 30.7% year-on-year from ₹361.33 crore in FY2025 to ₹472.21 crore in FY2026. Across FY2024 to FY2026, revenue from operations increased at an approximate CAGR of 28.4%.
Total income rose from ₹292.14 crore to ₹480.65 crore during the same period, representing a CAGR of approximately 28.5%.
EBITDA and Margin Expansion
EBITDA increased from ₹101.88 crore in FY2024 to ₹234.23 crore in FY2026, translating into a CAGR of approximately 51.5%.
More importantly, the EBITDA margin expanded from 35.6% in FY2024 to 41.1% in FY2025 and 49.1% in FY2026. The improvement indicates stronger operating profitability alongside revenue growth.
PAT Growth
Profit after tax increased from ₹13.61 crore in FY2024 to ₹55.61 crore in FY2025 before reaching ₹120.82 crore in FY2026. This represents an approximate CAGR of 198% over FY2024 to FY2026.
On a year-on-year basis, FY2026 PAT increased by 117%. The sharp increase in profitability was supported by operating leverage and margin expansion.
The company reported an FY2026 RoE of approximately 25.12%, indicating strong capital efficiency.
At the upper price band of ₹429, ESDS Software Solution's valuation works out to approximately 35.7 times FY2026 basic EPS of ₹12.03. At the lower band of ₹408, the implied P/E is approximately 33.9 times.
| Price / Benchmark |
Approx. P/E |
| ESDS at ₹408 |
33.9x |
| ESDS at ₹429 |
35.7x |
| ESDS IPO range cited by some sources |
34.5x to 36.3x |
| Nifty 50, August 20, 2026 |
~20.5x |
| IT/Cloud Services peers |
~40x to 60%+ |
| E2E Networks |
~404x |
Some valuation calculations cite a range of 34.5x to 36.3x because of differences in the EPS calculation, including calculations based on total income.
ESDS would therefore command a premium to the broader Nifty 50 benchmark. However, its implied P/E remains below the cited 40x to 60x-plus range for several listed IT and cloud services companies. E2E Networks, for example, is cited at approximately 404x, although its recent earnings profile makes direct comparison less meaningful.
The valuation case for ESDS rests primarily on its revenue growth, rapid PAT expansion, improving EBITDA margins and exposure to the data centre and AI infrastructure segment. A P/E multiple in the 35x to 40x range can be considered justifiable if the company sustains its growth and executes its expansion plans effectively.
The ₹720 crore raised through the IPO will largely be deployed towards cloud computing equipment and data centre infrastructure.
| Object of Issue |
Amount |
Share of Issue |
| Cloud computing equipment and data centre infrastructure |
₹576 cr |
~80% |
| General Corporate Purposes |
₹144 cr |
~20% |
Approximately 80% of the issue proceeds are earmarked for purchasing and installing cloud computing equipment and data centre infrastructure.
The planned capital deployment is strategically important because the company's expansion depends on additional GPUs, servers, storage and networking equipment.
The proceeds will support:
-
New data centre facilities in Kolkata and Sahibabad.
-
GPU, server and storage expansion at existing facilities.
-
Infrastructure required for AI and cloud workloads.
-
A dedicated AI cluster associated with the Australia-based AI neocloud agreement.
Since the IPO is entirely a fresh issue, the funds are being raised for the company's growth rather than providing an exit to existing shareholders. The fresh capital also gives ESDS an opportunity to pursue expansion without immediately relying on additional debt, potentially helping it avoid incremental interest costs.
The IPO is divided across different investor categories as per the stated reservation structure.
| Investor Category |
Reservation |
| Retail Individual Investors |
Minimum 35% of net issue |
| Non-Institutional Investors |
Up to 15% |
| Qualified Institutional Buyers |
Up to 50% |
Retail investors must apply for at least one lot of 34 shares and can bid for additional shares in multiples of the lot size.
The ESDS Software IPO GMP is currently indicated at approximately ₹280 to ₹320 per share. Based on the upper price band of ₹429, this represents an estimated premium of around 65% to 77%.
A GMP of ₹280 would imply a price of approximately ₹709 if the premium were reflected fully in the listing price:
₹429 + ₹280 = ₹709
Some estimates place the potential listing price in the ₹749 to ₹780 range, while certain platforms have forecast listing gains of around 60%.
However, the grey market premium is unofficial and can change significantly before listing. GMP should therefore not be treated as a guaranteed listing gain.
The actual listing price will depend on factors including:
-
IPO subscription levels.
-
Overall market sentiment.
-
Demand from institutional and retail investors.
-
Global market cues.
-
Conditions in the technology and data centre sectors.
ESDS Software IPO has several factors that could support its investment case.
1. Strong Revenue and Profit Growth
Revenue from operations grew at approximately 28.4% CAGR between FY2024 and FY2026, while FY2026 revenue increased 30.7% year-on-year. PAT grew much faster, rising 117% in FY2026.
2. Expanding EBITDA Margins
The EBITDA margin increased from 35.6% in FY2024 to 49.1% in FY2026. This margin expansion is an important part of the company's profitability improvement.
3. Exposure to AI and Cloud Infrastructure
The company's focus on data centres, cloud computing and AI infrastructure places its expansion strategy around high-capacity computing requirements. The planned deployment of 8,208 NVIDIA B300 GPUs under the $1.25 billion agreement is particularly significant.
4. Fresh Issue Structure
The IPO contains no OFS component. The entire ₹720 crore issue is a fresh issue, meaning the capital is intended for the company's stated expansion and corporate purposes rather than promoter or shareholder exit.
5. Data Centre Expansion
ESDS plans to add facilities in Kolkata and Sahibabad while expanding capacity across its existing five data centres. This provides a clear link between the IPO proceeds and its growth strategy.
6. Valuation Relative to Cited Peers
At approximately 34x to 36x FY2026 earnings, the IPO is priced at a premium to the Nifty 50 but below the cited 40x to 60%+ range for certain IT and cloud services peers.
Despite strong financial growth, investors should consider several risks before applying.
1. Customer Concentration Risk
ESDS serves BFSI, government and enterprise customers. Dependence on major customers can create concentration risk, as the loss or reduction of business from a significant client could affect revenue. Investors should review the detailed customer concentration disclosures in the RHP.
2. AI Deal Execution Risk
The $1.25 billion, five-year AI infrastructure agreement is a significant part of the company's future growth narrative. Delays in deployment or execution could affect expected revenue generation, capacity utilisation and margins.
3. High Capital Requirements
Data centres require substantial investment in GPUs, servers, storage, networking and physical infrastructure. Continued expansion may require additional capital if internal accruals are insufficient, potentially increasing future debt or dilution risk.
4. Competition
ESDS operates in a competitive market that includes global cloud and technology companies such as AWS, Microsoft Azure and Google Cloud, along with domestic data centre providers including CtrlS, Sify, STT and Yotta.
5. Valuation Risk
The IPO valuation assumes continued growth and strong profitability. If revenue growth slows or EBITDA margins contract, maintaining a 35x-plus earnings multiple could become more difficult.
The suitability of the ESDS Software IPO depends on the investor's objective, time horizon and risk tolerance.
For Retail Investors
The IPO may be relevant for investors who have a 3 to 5-year investment horizon and are comfortable with the risks associated with AI, cloud and data centre infrastructure.
At the upper price band of ₹429, the current GMP indicates potentially strong listing gains. However, GMP-based gains are not guaranteed, and investors should distinguish between short-term listing expectations and the company's long-term fundamentals.
Position sizing is also important because IPOs can experience significant volatility after listing. The provided strategy suggests limiting exposure to around 5% to 10% of a portfolio.
For HNI and NII Investors
Investors applying through the HNI/NII category should consider the cost of any leveraged funding. Potential listing gains should be assessed against the interest expense associated with IPO financing.
High subscription demand can also affect allotment outcomes, while HNI allotment is subject to the applicable proportionate allocation mechanism.
| IPO Event |
Date |
| Anchor Investor Bidding |
August 27, 2026 |
| IPO Opens |
August 28, 2026 |
| IPO Closes |
September 1, 2026 |
| Allotment Finalisation |
September 2, 2026 |
| Refund Initiation |
September 3, 2026 |
| Demat Credit |
September 3, 2026 |
| Listing on BSE and NSE |
September 4, 2026 |
ESDS Software Solution IPO combines strong recent financial growth with a significant expansion plan in data centre and AI infrastructure. Revenue from operations increased at a CAGR of approximately 28.4% between FY2024 and FY2026, while EBITDA margins expanded from 35.6% to 49.1%. PAT also increased sharply, reaching ₹120.82 crore in FY2026.
The ₹720 crore fresh issue has a clear strategic purpose, with approximately 80% of the proceeds earmarked for cloud computing equipment and data centre infrastructure. The planned expansion in Kolkata and Sahibabad, together with additional GPU, server and storage capacity, is aligned with the company's AI and cloud infrastructure strategy.
The $1.25 billion five-year AI deal involving the deployment of 8,208 NVIDIA B300 GPUs adds significant future revenue visibility, although execution remains a key consideration.
At approximately 34x to 36x FY2026 earnings, ESDS is valued above the Nifty 50 but below the cited valuation range of several IT and cloud services peers. This valuation can be supported if the company maintains its current growth and margin trajectory.
For short-term investors, the indicated GMP of approximately ₹280 to ₹320 suggests potentially strong listing gains, but the grey market is unofficial and volatile. For long-term investors, the investment case depends more heavily on the company's ability to execute its AI infrastructure contract, deploy IPO proceeds effectively and sustain revenue and margin growth.
Overall, the ESDS Software Solution IPO can be considered for investors with a 3 to 5-year horizon who are comfortable with the execution, competition and valuation risks associated with the data centre and AI infrastructure sector. Investors should maintain disciplined position sizing rather than relying solely on GMP-based listing expectations.
ESDS Software Solution IPO offers exposure to a business operating across enterprise cloud, managed services and data centre infrastructure. The company's FY2024 to FY2026 financial performance shows strong revenue growth, substantial EBITDA margin expansion and a sharp rise in PAT. Its ₹720 crore fresh issue is primarily directed towards infrastructure and capacity expansion, while the $1.25 billion AI agreement provides an important growth opportunity.
At the same time, investors need to assess customer concentration, capital intensity, competitive pressure and the sustainability of a 35x-plus earnings valuation. The IPO may therefore suit investors who are willing to take a long-term view of the company's AI and cloud infrastructure expansion rather than basing the investment decision solely on the expected listing premium.
Want to compare ESDS Software with other upcoming and recently listed companies? Use the IPO dashboard to track issue sizes, price bands, subscription trends and listing details across the primary market.
1. What is the ESDS Software IPO?
The ESDS Software IPO is a ₹720 crore fresh issue of ESDS Software Solution Limited, with a price band of ₹408 to ₹429 per share. The IPO opens on August 28, 2026, and closes on September 1, 2026.
2. What is the ESDS Software IPO price?
The ESDS Software IPO price band is ₹408 to ₹429 per share. The minimum retail investment is ₹14,586 for one lot of 34 shares at the upper price band.
3. What is the ESDS Software IPO date?
The ESDS Software IPO opens on August 28, 2026, and closes on September 1, 2026. The shares are scheduled to list on BSE and NSE on September 4, 2026.
4. What is the ESDS Software IPO GMP?
The ESDS Software IPO GMP is indicated at around ₹280 to ₹320 per share, implying a potential premium of approximately 65% to 77% over the upper price band of ₹429. GMP is unofficial and can change before listing.
5. Is ESDS Software IPO worth applying for?
ESDS Software IPO may suit investors with a 3 to 5-year investment horizon who are comfortable with AI, cloud and data centre infrastructure risks. The company reported FY2026 PAT of ₹120.82 crore and an EBITDA margin of 49.1%, but investors should also consider execution, customer concentration, competition, capital requirements and valuation risks before applying.
Disclaimer: This ESDS Software IPO analysis is based on the information provided and publicly available information. Investors should carefully read the company's Red Herring Prospectus (RHP), assess their risk tolerance and consult a qualified financial adviser before making an investment decision.