ESDS bets on AI chip rentals with $5 billion revenue goal within five years
After a strong IPO, India's ESDS plans to rent out GPUs and reach $5 billion in annual revenue within five fiscal years, while power supply remains a constraint.
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what happened
According to Moody's, Nashik-based ESDS Software Solution, buoyed by a successful stock market listing, plans to rent out high-performance chips used to run artificial intelligence systems and reach $5 billion in annual revenue within the next five fiscal years. Chairman and managing director Piyush Somani said that capturing only 1% of the market would be enough to get there.
The company listed on 4 September, and its shares are now trading about 3.4 times above the IPO price, with a market capitalisation of Rs.16,800 crore. Revenue for FY26 rose 31% to Rs.472.21 crore. The largest known contract is a five-year, $1.25 billion GPU rental deal with Australia's Sharon AI, signed in March. Somani acknowledged that power supply has become the biggest limiting factor for growth.
why it matters
For investors, the story shows how strong interest in AI infrastructure can inflate valuations of smaller companies. Analysts at Choice Institutional Equities note that pipeline conversion, deployment timelines and utilisation remain key variables, and that rapid GPU capacity growth could require more funding.
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- Buoyed by blockbuster IPO, ESDS bets on AI chip rentals for $5 billion revenue in 5 years — Moody's, 21 October 2026 at 03:34 UTC
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