Another Day, Another Upper Circuit: ESDS Now Up 269% From IPO Price

The seemingly unstoppable rally in ESDS Software Solution continued today, with the stock hitting the upper circuit for the fifth consecutive trading session since making its market debut last week.

Shares of the enterprise cloud and AI company jumped 10% to touch the upper circuit of ₹1,582.70 on the NSE. The stock opened at ₹1,520 apiece and fell to an intraday low of ₹1,330 before recovering sharply.

On the BSE, ESDS shares climbed 10% to hit the upper circuit of ₹1,560.35. The stock opened at ₹1,525 and also touched an intraday low of ₹1,330. The rally took the company’s market capitalisation to ₹18,289 Cr (about $1.9 Bn) on the exchange.

At its NSE price, ESDS is now trading 268.9% above its IPO issue price of ₹429 per share. It has also risen 109% from its NSE listing price of ₹757.

On the BSE, the stock is up 263.7% from the issue price and 109.1% from its listing price of ₹746.30.

ESDS made its stock market debut on Friday (September 4) at a premium of 76.5% on the NSE and nearly 74% on the BSE. The shares subsequently hit their 20% upper circuits at ₹908.40 on the NSE and ₹895.55 on the BSE on the listing day.

The stock has continued to hit its upper circuit in every trading session since then. After being locked at the 20% upper circuit for three consecutive sessions, its circuit filter was reduced to 10%.

The latest surge has also taken ESDS above the ₹1,550 target price set by Choice Institutional Equities. At ₹1,582.70 on the NSE, the stock is now 2.1% above the brokerage’s target.

Choice recently initiated coverage on ESDS with a ‘Buy’ rating, citing the company’s $1.25 Bn AI infrastructure contract with Australia-based Sharon AI as a key growth driver.

The brokerage expects ESDS’ operating revenue to increase nearly 9.7X from ₹472 Cr in FY26 to ₹4,581 Cr by FY28, largely driven by the ramp-up of its AI infrastructure business. However, it flagged the execution of the Sharon AI contract, customer concentration, capital-intensive expansion plans, and rising competition as key risks.

ESDS’ ₹720 Cr IPO, comprising entirely a fresh issue of shares, was subscribed 135.88X during its three-day bidding period. Qualified institutional buyers led the demand, subscribing to their reserved portion 261.51X.

Ahead of the IPO, the company raised ₹216 Cr from anchor investors by allotting 50.3 Lakh shares to 19 entities at ₹429 apiece.

On the financial front, ESDS’ consolidated net profit more than doubled to ₹120.8 Cr in FY26 from ₹55.6 Cr in the previous fiscal year. Its operating revenue increased 30.7% to ₹472.2 Cr from ₹361.3 Cr in FY25.

Founded in 2005, Nashik-based ESDS provides cloud computing, data centre, managed services, and AI-led digital solutions to government and enterprise customers.

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