ESDS Software’s Q4 net profit sank to ₹29 cr, a 57% slide from the ₹62 cr recorded in the previous quarter. The stock ended Thursday at ₹1,434, a 5% lower circuit, and has since slid 23% over the last five sessions.
Revenue fell 20% sequentially to an undisclosed figure, a stark contrast to the 28.4% CAGR the company reported for FY 2024‑26. First‑quarter growth of 7.3% also lagged expectations.
Today’s session opens a 30‑day shareholder lock‑in, freeing 2.5 m shares – 2.5% of the outstanding equity – worth ₹358.5 cr. Those shares become eligible for trading but are not automatically sold.
ESDS went public on September 4 at ₹429, a 76% premium to its issue price. The stock doubled immediately and reached a post‑listing high of ₹1,859.2, quadrupling from the issue price before the recent correction.
Analysts now focus on whether the slump will deepen or the share price will stabilize ahead of the next earnings call on December 15. Market watchers note the high volatility and the potential for a rebound if the company can address margin pressure.