The hook
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From Nashik hoster to sovereign AI powerhouse
ESDS listed in September 2026, runs over 8,208 NVIDIA B300 GPUs and launched SWARAJ Cloud and Sovereign AI products to keep Indian data under Indian jurisdiction.
ESDS listed in September 2026, runs over 8,208 NVIDIA B300 GPUs and launched SWARAJ Cloud and Sovereign AI products to keep Indian data under Indian jurisdiction.
Digital public infrastructure and AI for All have shifted the bottleneck to high-performance computing and GPUs. ESDS positions itself as an empanelled sovereign technology enabler.
Founded in Nashik in 2005 by Piyush Somani, ESDS operates inside government STPI technology parks, converting real-estate capex into flexible opex while targeting post-tax ROCE above 20%.
Total annual revenue rose from ₹161 crore in FY20 to ₹472.21 crore in FY26. EBITDA margin expanded from 35.40% to 49.60% over the same period.
ESDS rents NVIDIA B300, H200 and AMD MI300X instances. It claims GPUaaS can cut total cost of ownership by up to 60%, accelerate inference by 30x, and compress training to as little as 10 days.
International revenue reached 25.51% of total. A single UAE customer contributed ₹75.24 crore, while Russian BFSI revenue collapsed from ₹72.81 crore in FY25 to ₹13.24 crore in FY26.
ESDS reported a net loss of ₹15 crore in FY23. By FY26, profit after tax hit ₹120.82 crore and PAT margin reached 25.59%.
FY26 cash and equivalents jumped from ₹60.68 crore to ₹1,253.39 crore, matched by other current liabilities of ₹1,195.72 crore, mostly customer advances linked to the UAE project.
MeitY empanelment, STQC audit, DPDP Act penalties up to ₹250 crore and rupee billing create a real moat. But ongoing CHiPS arbitration and government dependencies show B2G contracts can stall and consume capital.
The story turns on whether ESDS can keep its B300 GPU cluster utilised and deliver the ₹1,000 crore CEL green data centre on time. Read the full deep dive for the detailed project pipeline.
Read the full analysis →