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ESDS IPO Faces Revenue Hit from Gazprombank Sanctions

By ThePip DeskESDS IPO Faces Revenue Hit from Gazprombank Sanctions

ESDS’ ₹720 Cr IPO faces headwinds as its largest client, Gazprombank, sees revenue contribution plummet due to international sanctions.

Indian cloud service provider ESDS, currently in the midst of a ₹720-crore Initial Public Offering, previously relied heavily on Russia’s sanctioned lender Gazprombank. This critical revenue relationship has been significantly altered by recent geopolitical developments, as detailed in a Moneycontrol report.

Gazprombank’s Shifting Contribution

ESDS had supplied a suite of services to Gazprombank, encompassing cloud infrastructure, specialized software, and comprehensive managed services. These offerings established the Russian bank as the cloud provider’s top revenue source for a period.

  • Gazprombank represented 20.15% of ESDS’ total revenues during the financial year FY25.
  • However, this substantial share drastically fell to just 2.8% in FY26, directly attributed to the imposition of international sanctions.

The drastic reduction in revenue contribution from Gazprombank highlights the direct financial impact of global sanctions on interconnected business operations. ESDS continues its IPO process amidst these notable shifts in its client portfolio.

IPO Nears Close

The ₹720-crore IPO for the Indian cloud provider is slated to conclude on September 1. Investors are evaluating ESDS’s market position and future growth trajectory in light of its evolving revenue landscape.

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