Shares of ESDS Software Solution Ltd hit a 5% lower circuit on Friday, falling to Rs 1,760.50 after the company posted weak Q1 FY27 results.

ESDS Software’s revenue for Q1 FY27 came in at Rs 133.7 crore.

That’s a decent 7.3% higher than the same quarter last year, but it’s also a sharp 20.2% drop from the Rs 167.5 crore the company had reported just one quarter earlier.

Profit followed a similar pattern. Net profit rose 14% year-on-year to Rs 29.3 crore, yet it fell nearly 57% from the Rs 67.7 crore posted in the previous quarter.

Costs grew faster than income this time around, and margins narrowed sharply from over 50% to around 28%.

This is only ESDS Software’s second earnings report since it went public.

The company made a blockbuster debut on the NSE on 4 September, opening at a premium of nearly 76% over its issue price of Rs 429.

The IPO had been subscribed a massive 135.88 times. Even after today’s fall, the stock is still trading around 310% above its issue price, so early investors remain well in profit.

Attention now shifts to the company’s newer GPU infrastructure business, including its plans in Australia, seen as a key driver for growth in the coming quarters.

With the stock locked at the lower circuit through the morning session, there was little room left for further movement.

As of 10:20 am, Shares of ESDS Software remained locked at Rs 1,760.50, down 5% from Thursday’s close of Rs 1,853.15, leaving the company with a market valuation of close to Rs 21,700 crore.

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