ESDS Software Solutions Q2 net profit grows 41% to ₹31.1 crore on robust demand

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Infrastructure-as-a-Service accounted for 47% revenue share at ₹65.6 crore in the quarter

By Vallari Sanzgiri

Updated - November 02, 2026 at 07:01 PM.

AI infrastructure entering a long-term global expansion cycle, with India still at an early stage of this opportunity, according to Piyush Somani, Chairman & Managing Director, ESDS Software Solution | Photo Credit: KS Gunasekar

ESDS Software Solutions reported a net profit growth of 41 per cent to ₹31.1 crore and revenue growth of 48 per cent to ₹138.3 crore led by sustained demand in the digital infrastructure business.

On a sequential basis, profit grew 6 per cent and revenue from operations grew 3.5 per cent, while EBITDA stood at ₹57.8 crore, an annual growth of 18.3 per cent with a margin of 41.8 per cent.

“AI infrastructure is entering a long-term global expansion cycle, with India still at an early stage of this opportunity. Industry estimates indicate that approximately $5.2 trillion will need to be invested in AI-ready data centres globally by 2030. Within this rapidly expanding ecosystem, the global data-centre discrete GPU revenue alone is projected to exceed $51 billion by 2028. This investment cycle will be underpinned by AI factories, high-density compute and large-scale GPU clusters,” said Piyush Somani, Chairman & Managing Director, ESDS Software Solution, adding that the demand is accelerated by the growing strategic importance of sovereignty and control over mission-critical digital infrastructure across governments, BFSI institutions and enterprises.

Infrastructure-as-a-Service dominated the revenue share, accounting for 47 per cent of the quarterly performance, with a total of ₹65.6 crore in Q2. Of this, colocation and data centre services accounted for 25 per cent at ₹16.3 crore. Managed services business accounted for 31 per cent, while Software-as-a-Service took up 22 per cent of the revenue share.

Within IaaS, the GPU business reported a contract value of $1,250 million. ESDS entered into a strategic AI cloud infrastructure agreement with an Australia-based neocloud AI compute service provider this quarter. Pursuant to this agreement, the AI company is required to deploy and operate a dedicated AI infrastructure cluster within an existing data centre facility in Australia by September 2026. Revenue from the project is expected to commence in Q3FY27.

“Our emphasis remains on maintaining healthy margins, optimising costs and strengthening cash flow management. As we expand our capabilities across cloud, data centres and the AI ecosystem, our capital allocation priorities remain focused on disciplined investment, operational scalability and long-term returns. Our focus remains on translating strategic investments into sustainable value for our shareholders,” said Nadukuru Sita Ramaiah, Chief Financial Officer, ESDS Software Solution.

Published on November 2, 2026

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