Shares of ESDS Software Solutions Ltd. (NSE: ESDS) opened the session at ₹1,672.5, down 5% from the previous close, reflecting the market’s reaction to the company’s earnings that saw quarterly profit tumble 56.7% to ₹29 crore.
The company reported a sequential revenue decline of 20%, though the exact figure was not disclosed. Analysts at Choice Broking had projected revenue of ₹1,876 crore for FY2027, down from an earlier estimate of ₹2,263 crore, signaling a cautious outlook.
During the earnings call, the CMD highlighted that the Q4 revenue included a one‑off design services component booked through a subsidiary. He also noted a delay in the Australia deal, now expected to generate revenue in FY2027’s third quarter rather than the previously targeted September 2026.
Choice Broking, after issuing a “buy” rating, has downgraded ESDS to “sell” but maintained the ₹1,550 price target. The firm also withdrew its guidance for FY2027, leaving investors to navigate the uncertainty.