Brief
ESDS Software stock hits lower circuit as price falls
Choice Institutional Equities downgraded ESDS Software to sell as the stock hit a 5% lower circuit amid delayed AI deployment.
By Felo News Desk · Published
ESDS Software's shares fell to a 5% lower circuit on September 29, 2026, after a rapid rise since its September 4 listing, Business Today reported.
The company, focused on data‑centre and AI infrastructure, had surged 269.78% from its IPO price of Rs 429. Choice Institutional Equities assigned a "Sell" rating, keeping its target price at Rs 1,550, and warned that near‑term risk‑reward had become less favourable.
Choice said the firm reported in‑line revenue of Rs 133.6 crore for Q1, down 20.2% sequentially but up 7.2% YoY. EBITDA fell 45.5% sequentially to Rs 55.9 crore, though the margin dropped to 41.9% from 61.3% a quarter earlier. Profit after tax was Rs 29.2 crore, down 56.8% sequentially but up 13.8% YoY.
The brokerage noted a delayed Sharon AI deployment, pushing AI‑led revenue contribution from October to November, and highlighted execution risk around the company's domestic order book of about Rs 3,000 crore and an international pipeline of over 50,000 GPUs.
Key facts
- ESDS Software shares hit a 5% lower circuit on Sep 29, 2026. (businesstoday.in)
- The stock had risen 269.78% from its IPO price of Rs 429. (businesstoday.in)
- Choice Institutional Equities gave the stock a Sell rating with a target of Rs 1,550. (businesstoday.in)
- Q1 revenue was Rs 133.6 crore, down 20.2% sequentially but up 7.2% YoY. (businesstoday.in)
- EBITDA fell 45.5% sequentially to Rs 55.9 crore; PAT was Rs 29.2 crore. (businesstoday.in)
Sources
- [1] businesstoday.in — originally reported as “ESDS Software stock extends fall; multibagger hits 5% lower circuit again”
