ESDS Software shares down 5% after profits plunge to ₹29cr
Business
ESDS Software's stock dropped 5% for the second day straight after its latest quarterly results disappointed investors.
The company's revenue fell by 20% and profits tumbled 56.7%, landing at just ₹29 crore, way below the expected ₹250 crore.
This was mainly due to the fourth quarter of financial year 2026 including a one-off design services revenue which was booked in a subsidiary and delays in the Australian deal, now pushed to early November FY27.
Choice Broking downgrades ESDS, keeps ₹1,550
After these results, analysts at Choice Broking cut their future revenue estimate for ESDS and switched their rating from "buy" to "sell," though they still see potential with a price target of ₹1,550.
ESDS shares had once surged more than 4x from its issue price of ₹429, as excitement cooled off.