ESDS Software shares hit 5% lower circuit on weak Q1 results

As per the latest business developments, Shares of ESDS Software Solution hit 5% softer circuit at Rs 1,760.50 apiece as soon as the market opened on September 25. The stock declined after the firm noted its June quarter results. The bottom line of the firm more than halved on a sequential basis and the top line declined sharply for April-June quarter.

The data centre service provider noted a 57% on-quarter decline in its consolidated net earnings for the June quarter to Rs 29 crore from Rs 67 crore in the previous quarter. The firm additionally noted a 20% decline in its topline to Rs 134 crore for the June quarter. That stated, on a year-on-year basis, the bottom line rose nearly 14% and the top line was up over 7% for the period. The sharp decline in the net earnings can be attributed to an over 46% sequential climb in other expenses to Rs 52 crore. The total expenses of the firm rose nearly 17% sequentially to Rs 98 crore. In the meantime, total income declined nearly 21% on quarter to Rs 235 crore

Despite Friday’s decline, ESDS Software shares have delivered a substantial gain since their market debut. The stock had touched a 52-week high of Rs 1,864.35 in September 2026, while its 52-week low stood at ₹746.30 on September 4.

The stock-market debut took place on September 4, and the shares have since advanced around 310% from their IPO price of Rs 429. ESDS Software Solution shares made their debut on the NSE at Rs 757 apiece earlier this month, representing a 76.46% premium over the offering price. The firm’s Rs 720-crore IPO was offered in the price range of Rs 408-Rs 429 per share.

Choice Broking had initiated coverage on ESDS Software with a ‘Buy’ rating and a target price of Rs 1,550, based on a valuation of 31 times its estimated FY28 forward price-to-earnings (P/E). The brokerage identified the expansion of India’s cloud-services and cloud-GPU markets as key potential expansion triggers for the firm.