Business · Companies · 2 hrs ago
ESDS targets $5 billion revenue through AI chip rentals
Nashik-based ESDS is betting on renting out AI chips to grow its business.
The company runs data centres and cloud services in India, and rents powerful processors known as GPUs to businesses and the government.
Chairman and managing director Piyush Somani says ESDS aims to reach $5 billion in annual revenue within five years.
That target is ambitious: the company reported ₹472.21 crore in revenue for FY26 and would need to grow it about 2.5 times each year.
A five-year GPU rental agreement with Australian firm Sharon AI could bring in about $250 million a year, but ESDS would face costs if the client cancelled.
Somani says the company expects to re-rent unused chips, while advance payments from customers help fund projects.
ESDS expects GPU services to make up nearly three-quarters of its revenue in the near term, though power supply is a key constraint for the industry.
ESDS Software Solution is targeting $5 billion in annual revenue within the next five fiscal years by renting out high-performance AI chips.
Chairman and managing director Piyush Somani said capturing 1% of the market could take the company past that target.
The company signed a five-year, $1.25 billion GPU rental deal with Australian firm Sharon AI in March.
GPU rentals generated 44% of ESDS’s FY26 revenue, while Somani expects GPU-as-a-service to account for nearly 75% of revenue in the near term.
ESDS ended FY26 with revenue of ₹472.21 crore, up 31%.
- Who
- ESDS Software Solution, led by chairman and managing director Piyush Somani.
- What
- The company plans to rent out high-performance chips used for AI and target $5 billion in annual revenue within the next five fiscal years.
- When
- The target is for the next five fiscal years. The article was published on 21 October 2026.
- Where
- ESDS is headquartered in Nashik and operates five data centres across India.
- Why
- ESDS is betting on growing demand for computing power driven by AI adoption, corporate cloud migration and 5G networks.
This story does not have two clearly opposing sides.
ESDS signed a five-year, $1.25 billion GPU rental deal with Australian firm Sharon AI.
ESDS Software Solution went public, listing at ₹908.40 per share against an IPO price of ₹429.
- Revenue target
- $5 billion annually within the next five fiscal years
- Sharon AI deal
- $1.25 billion over five years
- FY26 revenue
- ₹472.21 crore, up 31%
- FY26 revenue from renting processors
- 44%
- Data centres
- Five across India
What people are saying
captures just 1% of the market over the next five years, our revenue would have crossed $5 billion
Our aspiration is not to capture 50% of the market. That is how big the market is