ESDS Software Solution Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 138.34 Cr (+47.51% YoY) and PAT growth of +40.69% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 02, 2026 |
|---|---|
| Revenue (Q2) | Rs. 138.34 Cr (+47.51% YoY) |
| PAT (Q2) | Rs. 31.09 Cr (+40.69% YoY) |
| EBITDA margin | 41.75% (-1029 bps YoY) |
| EPS (Q2) | Rs. 2.83 (+28.64% YoY) |
Q2 FY27 delivered 47.51% YoY revenue growth to Rs.138.34 crore with PAT up 40.69% and sequential stabilization after Q1's decline, while the Rs.720 crore IPO left the company debt-free with Rs.1,930.76 crore net cash and customer advances pre-funding the AI-factory build. Consolidated EBITDA margin compressed 1,029 bps YoY to 41.75% on the pre-ramp cost layer, and receivables growth outpaced revenue at ~155 days of Q2 revenue. Key catalysts are Q3-gated: Sharon AI billing from mid-Q3 FY27 and IPO-funded capacity billing from Q1 FY28, with management having declined formal FY guidance.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "in-line to modestly ahead YoY; sequential stabilization is the swing factor" | +47.51% YoY; +3.50% QoQ after −20.20% in Q1 | Played out |
| Margins | "likely compressing or flat at best" on "AI-factory pre-ramp costs" | EBITDA margin 41.75% vs 41.90% Q1 (flat QoQ); −1,029 bps vs Q2FY26's 52.05% | Played out |
| GPU/input inflation | "lands in capex first, opex second" | H1 capex Rs.55.03 Cr vs Rs.3,000 Cr program; margin flat QoQ — not yet visible | Partially |
| FX | "FX is a mild tailwind" | Q2 FX translation gain Rs.0.62 Cr; H1 unrealised exchange gain Rs.2.04 Cr — mild | Played out |
| Funding costs | upgrade benefit "from H2 more than Q2" | Finance costs +29.55% QoQ — no relief yet — as expected, not yet | Played out |
| Q1 deferred-tax credit | "Rs.34.69 Cr deferred-tax credit that flattered Q1 PAT" (per pre-call note) | Q2 deferred credit only Rs.0.96 Cr; ETR normalized to 22.52% | Played out |
| Watch: Sharon AI go-live | 1st-week-November target | Not addressed in the filing — open for the call | Not observable |
| Watch: capex deployment quantum | "deployed quantum… left unanswered last call" | Reg 32: Rs.46.91 Cr utilised, nil on the equipment object; H1 capex Rs.55.03 Cr — partially | Played out |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| FY27 capex ~Rs.1,500 Cr concluded + additional Rs.1,500 Cr | Q1 FY27 earnings call | H1 capex Rs.55.03 Cr | Too Early |
| IPO funds: no deviation in use of Rs.720 Cr | Regulation 32 statement filed with Q2 results | Rs.46.91 Cr utilised, nil deviation certified — compliance | Met |
| Sharon AI revenue from mid-Q3 FY27 at $5–6/GPU/hr | Q1 FY27 earnings call | Not yet due; not in filing | Too Early |
| IPO-funded India capacity live Q4 FY27, billing Q1 FY28 | Q1 FY27 earnings call | Nil utilised on the Rs.576 Cr equipment object so far | Too Early |
| QoQ decline was one-time Q4 FY26 design-services revenue in a subsidiary; "other numbers remaining in line and showing steady growth" (Q1 FY27 earnings call) | Q2 revenue +3.50% QoQ, PAT +6.20% QoQ after Q1's −20.20%/−56.74% prints | Confirmed | |
| Growth "expected from Q3 onwards" (management on the Q1 FY27 call); Q2 the last pre-inflection quarter | Q2 stabilized sequentially; no inflection yet, none guided before Q3 — consistent | Too Early | |
| Seasonality to fade as AI-factory billing spreads evenly (Q1 FY27 call) | Q2 margin flat QoQ; no evidence either way yet | Too Early |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.