A person reviews the ESDS IPO Prospectus document in a meeting room.
ESDS Software Solution is set to launch its Initial Public Offering (IPO), aiming to raise capital for expansion, including the acquisition of GPUs and the pursuit of sovereign cloud ambitions. The company has already secured ₹216 Cr from anchor investors such as Motilal Oswal and Quant MF, with domestic mutual funds notably cornering 82% of the anchor allotment.
The data center company reported strong financial performance for FY26, with revenue from operations growing 31% year-over-year to ₹472 Cr and net profit surging 117% year-over-year to ₹120.8 Cr. The EBITDA margin expanded to 49.6%, reflecting operational leverage across its cloud, SaaS, and managed services segments.
ESDS serves over 2,500 clients, including a significant number of banking and government organizations, leveraging its indigenous Swaraj Cloud platform. However, the IPO faces headwinds. Escalating hardware prices, particularly for GPUs and servers, may limit the planned capacity expansion. Intense competition from global hyperscalers and domestic conglomerates entering the data center market also poses a challenge. Additionally, risks related to customer concentration, government payment cycles, and current asset hypothecation remain.
In a separate development, the healthtech startup Even Healthcare announced layoffs affecting approximately 350 employees, or nearly 30% of its workforce. This move is part of a strategic pivot from its insurance business to a hospital-led healthcare model, including the launch of its first multispeciality hospital in Bengaluru.
Other notable financial news includes InstaAstro raising $12 Mn in Series A funding, Temple, a wearable startup led by Deepinder Goyal, acquiring London-based longevity medicine practice Longevous, and the hospitality giant PRISM (parent of OYO) reporting a significant increase in net profit for FY26.
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