Sonata Software Limited (SONATSOFTW)
₹248.00 +1.20% last close, 16 Oct
Latest quarterly results (Q4 FY26)
In its latest reported quarter, Q4 FY26, Sonata Software's revenue was ₹2,536 Cr (-3.1% year on year, -17.7% on the previous quarter), and net profit ₹130 Cr (+20.4% year on year); the operating margin was 9.7%.
| Q4 FY26 (₹ Cr) | Value | YoY vs Q4 FY25 | QoQ |
|---|---|---|---|
| Revenue | ₹2,536 | -3.1% | -17.7% |
| Operating profit | ₹246 | +42.3% | +16.4% |
| Net profit | ₹130 | +20.4% | +25.0% |
| EPS (₹) | 4.65 | +21.4% | +25.0% |
| Operating margin | 9.7% | — | — |
SONATSOFTW delivery percentage
NSE end-of-day data for
On Fri, 16 Oct 2026, 42.31% of the SONATSOFTW shares traded on NSE were taken to delivery, against the stock's own 20-session average of 36.75%. That is close to its usual level. It traded 3.9 times its average daily volume.
Delivery in the last 5 sessions: 39.4% · 30.7% · 32.9% · 38.2% · 42.3%
A description of what the exchange published, not a recommendation. Names such as "accumulation" or "long buildup" label a pattern in the numbers. How delivery is analysed
📢 Recent Corporate Announcements
Sonata Software Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate issued by Registrar and Share Transfer Agent KFin Technologies Limited confirms that securities received for dematerialisation were verified, cancelled, and listed on the exchanges within the mandated 21-day timeline. This is a standard quarterly administrative filing with no financial impact on the company.
- Compliance certificate filed pursuant to Regulation 74(5) of SEBI Regulations, 2018
- Covers dematerialisation activities for the quarter ended September 30, 2026
- Issued by Registrar and Share Transfer Agent KFin Technologies Limited dated 05.10.2026
- Confirms mutilation, cancellation, and updating of depository details within 21 days
Sonata Software has been awarded the 2026-2027 Microsoft AI Business Solutions Inner Circle award, representing its sixth time receiving this partner recognition. The recognition places the company in Microsoft's top tier of global selling partners across solutions like Dynamics 365, Azure, Fabric, Power Platform, and Copilot. With FY26 TTM revenue of ₹10,701 Cr, Sonata continues to rely heavily on its Microsoft partnership ecosystem to drive its AI-led modernization pipeline. No new commercial order value or direct financial commitment was disclosed in the filing.
- Sixth Inner Circle recognition achieved by Sonata Software in Microsoft's partner network
- Company highlights support from its 6,400+ AI engineers globally
- Identifies as a USD 1.2 billion+ AI-first modernization engineering company with nearly 40 years of expertise
- Deepens engagement via Microsoft's Copilot Agents & Platform Engineering Depth Partners program and Frontier Partner status
Sonata Software's wholly owned domestic subsidiary, Sonata Information Technology Limited (SITL), has signed a 5-year Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS). The partnership focuses on accelerating cloud transformation and enterprise modernization across India, covering industries like BFSI, retail, manufacturing, IT, and healthcare. Under the pact, Sonata will invest in dedicated AWS sales, presales, and delivery capabilities, utilizing AWS programs such as the Migration Acceleration Program. While the agreement spans 5 years, specific revenue commitments or capital expenditure amounts were not disclosed.
- 5-year Strategic Collaboration Agreement entered with Amazon Web Services (AWS) via SITL
- Focuses on joint go-to-market efforts targeting BFSI, retail, manufacturing, IT, and healthcare industries in India
- Collaboration leverages AWS programs including Migration Acceleration Program and Managed Services Program
- Specific financial commitments or revenue targets were not disclosed in the filing
Sonata Software informed the exchanges that its management conducted one-on-one physical meetings in Mumbai on September 4, 2026, with institutional investors and asset management companies. The participants included HDFC AMC, ICICI Prudential AMC, Nippon Life India AMC, Aditya Birla Sun Life AMC, Quant Money Managers, and One Up Financial Consultants. The company stated that discussions were based solely on publicly available information and no unpublished price sensitive information (UPSI) was shared.
- Management held one-on-one physical investor meetings in Mumbai on September 4, 2026
- Engaged with 6 institutional entities including HDFC AMC, ICICI Prudential AMC, Nippon Life, and Aditya Birla Sun Life AMC
- Meetings took place in scheduled slots between 8:00 AM and 4:30 PM IST
- Company confirmed no unpublished price sensitive information (UPSI) was shared
Sonata Software Limited has announced that the Scheme of Amalgamation of its wholly-owned subsidiary, Encore I.T. Services Solutions Private Limited, has officially become effective from August 14, 2026, after receiving Registrar of Companies (RoC) approval on August 25, 2026. The appointed date of the scheme is set as April 1, 2024. As this involves the merger of a 100% subsidiary, no fresh equity shares will be issued, resulting in zero dilution to the company's paid-up capital.
- Scheme of Amalgamation with wholly-owned subsidiary Encore I.T. Services Solutions becomes effective
- Effective date set as August 14, 2026; RoC approval received on August 25, 2026
- Appointed date for the merger is April 1, 2024
- Zero equity dilution: No fresh shares issued, leaving share capital unchanged
Sonata Software Limited disclosed that its management conducted a virtual one-on-one meeting with institutional investor Invesco Asset Management (India) Pvt. Ltd. on August 18, 2026, from 12:30 PM to 1:30 PM IST. The company confirmed that discussions were limited to publicly available documents and no unpublished price-sensitive information (UPSI) was shared. This is a standard regulatory filing in compliance with SEBI listing regulations.
- One-on-one meeting conducted with Invesco Asset Management (India) Pvt. Ltd.
- Interaction held virtually on August 18, 2026, between 12:30 PM and 1:30 PM IST
- Discussions restricted to publicly available information with no UPSI shared
Sonata Software has appointed Hariprasad Rebala as its Chief AI Officer to steer end-to-end AI strategy, platforms, and native delivery models. Rebala brings over 3 decades of experience across deep-tech AI startups and major IT services firms including Mindtree, Capgemini, and Wipro. The appointment aligns with Sonata's strategic focus on scaling AI and modernization engineering across its global base of 6,400+ engineers. Against a TTM revenue base of ₹10,701 Cr and TTM PAT of ₹463 Cr, the move is aimed at accelerating enterprise AI client adoption.
- Hariprasad Rebala appointed as Chief AI Officer to lead AI transformation, platform strategy, and delivery.
- Appointee brings over 3 decades (30+ years) of enterprise IT and deep-tech startup experience.
- Sonata positions its footprint with 6,400+ AI engineers across global delivery centres in the US, UK, India, and other regions.
- Company highlights its USD 1.2 billion+ revenue scale and key partnerships with Microsoft, AWS, Salesforce, and Snowflake.
Sonata Software reported a resilient Q1 FY2027 with a book-to-bill ratio of 1.18x and international business EBITDA margins at 15.4%. The company is pivoting to an 'AI-native' strategy, resulting in a 21% QoQ increase in AI-led pipelines and a 27% jump in AI-led order wins. Domestic revenue for the quarter stood at Rs 2,505.6 Cr, with the company successfully navigating previous headwinds from OEM partner billing changes. Management highlighted the addition of 7 new customers and a significant 82% YoY growth in the Small and Mid-market Cloud (SMC) segment.
- AI-led order wins increased by 27% quarter-on-quarter, reflecting strong adoption of the Harmoni.ai platform.
- Book-to-bill ratio maintained at a healthy 1.18x, indicating a strong pipeline for future revenue realization.
- Domestic business SMC and corporate segment grew by 82% year-on-year, diversifying the revenue base.
- International business utilization stood at 88.5%, slightly impacted by delays in large deal ramp-ups.
- Added 7 new customers in Q1 FY2027, with top 10 clients now contributing 51% of revenue.
Sonata Software has published the audio recording of its analyst and institutional investor call held on August 7, 2026. This filing is a regulatory requirement under SEBI LODR following the company's quarterly results. The call provides management's perspective on the TTM revenue of 10,701 Cr and the current operating margin of 7.6%. Investors can access the recording via the company's website to understand the progress on the $250 million revenue target for Healthcare and BFSI verticals.
- Audio recording of the analyst call held on August 7, 2026, is now available for public access.
- The filing follows the initial intimation provided to the exchanges on July 30, 2026.
- Management commentary likely addressed the large deal pipeline of 20-30 deals mentioned in recent profiles.
- Company reported TTM revenue of 10,701 Cr with a net profit of 463 Cr.
- Current employee capacity stands at 6,649 with a utilization rate of 87.3%.
Sonata Software has made the audio recording of its Analyst/Investor call held on August 7, 2026, available to the public. This filing is a compliance requirement following the company's earlier disclosure on July 30, 2026. The call likely discussed the company's TTM performance, including revenue of Rs 10,701 Cr and a PAT of Rs 463 Cr. Accessing such recordings helps investors understand management's strategy regarding its 15% expected growth rate and AI adoption.
- Audio recording of the call held on 7th August, 2026, is now available on the company website.
- The call follows a prior disclosure dated 30th July, 2026.
- Company reported TTM revenue of Rs 10,701 Cr and TTM PAT of Rs 463 Cr.
- Management is targeting $250 million revenue in Healthcare and BFSI verticals within 3-5 years.
Sonata Software reported a strong 29.3% QoQ growth in consolidated revenue to ₹3,279.1 cr for Q1 FY27, primarily driven by a 42.4% surge in the domestic business. However, consolidated PAT declined to ₹108.1 cr from ₹130.5 cr in the previous quarter, as consolidated EBITDA margins (after forex) contracted from 9.7% to 5.4%. The company is pivoting heavily toward AI, with an AI-led pipeline of $340M and a key modernization deal win with a major US coffee chain. International services remained relatively flat in USD terms at $82M, though the offshore revenue mix improved to 70%.
- Consolidated revenue grew 29.3% QoQ to ₹3,279.1 cr, representing ~30% of TTM revenue in a single quarter.
- AI-led pipeline increased 21% QoQ to $340M, with an AI-led order book of $21.73M.
- Domestic business revenue jumped 42.4% QoQ to ₹2,505.6 cr, with cloud services contributing 89.7%.
- International services EBITDA margin (after forex) fell significantly to 14.7% from 23.6% in Q4 FY26.
- Offshore revenue mix in international services reached 70%, up from 68% in the previous quarter.
Sonata Software reported a 29.3% QoQ increase in consolidated revenue to ₹3,279.1 Cr for Q1 FY27, though PAT fell to ₹108.1 Cr from ₹130.5 Cr in Q4 FY26. The International Services segment remained flat at $82M revenue with a significant EBITDA margin drop to 14.7% compared to 23.6% in the previous quarter. A bright spot is the AI-led pipeline, which grew 21% QoQ to $340M, and the domestic business, which saw a 42.4% revenue jump to ₹2,505.6 Cr.
- Consolidated revenue reached ₹3,279.1 Cr, representing a 10.6% YoY increase
- AI-led order book grew 27% QoQ to $21.73 million in Q1 FY27
- International Services utilization decreased to 88.5% from 91.8% in the previous quarter
- Domestic business (SITL) revenue grew 42.4% QoQ to ₹2,505.6 Cr, driven by cloud services
- Offshore revenue mix in International Services reached 70%, up from 68% in Q4 FY26
Sonata Software has declared an interim dividend of Rs. 1.25 per share for FY 2026-27, with a record date set for August 14, 2026. The company reported Q1 FY27 consolidated revenue of Rs. 3,279.1 Cr, representing a 10.6% YoY growth, while EBITDA rose 12.1% YoY to Rs. 179.0 Cr. However, consolidated PAT saw a sequential decline to Rs. 108.1 Cr from Rs. 130.5 Cr in Q4 FY26, impacted by a forex loss of Rs. 7.4 Cr. The International IT services segment maintained steady growth with a 2.1% increase in constant currency terms.
- Declared an interim dividend of Rs. 1.25 per equity share (125% of par value).
- Consolidated Q1 FY27 revenue increased 10.6% YoY to Rs. 3,279.1 Cr.
- International IT Services revenue grew 11% YoY in INR terms to Rs. 777.2 Cr.
- Domestic Products & Services EBITDA grew 34.9% YoY to Rs. 59.3 Cr.
- Net cash and cash equivalents stood at Rs. 67.0 Cr as of June 30, 2026.
Sonata Software reported a 10.6% YoY increase in consolidated revenue to ₹3,279.1 Cr for Q1 FY27. However, consolidated PAT declined to ₹108.1 Cr from ₹130.5 Cr in the previous quarter, partly due to a forex loss of ₹7.4 Cr. The Board declared an interim dividend of ₹1.25 per share (125% of face value), representing a payout of approximately 32% of the quarter's consolidated EPS. International IT services showed steady growth of 11% YoY in INR terms, while the domestic segment's EBITDA grew significantly by 34.9% YoY.
- Consolidated revenue for Q1 FY27 reached ₹3,279.1 Cr, a 10.6% growth compared to Q1 FY26.
- Interim dividend of ₹1.25 per equity share declared with a record date of August 14, 2026.
- International IT Services revenue stood at ₹777.2 Cr, growing 11% YoY in INR terms and 2.1% in constant currency.
- Consolidated PAT was ₹108.1 Cr, impacted by a forex loss of ₹7.4 Cr versus a forex gain of ₹28 Cr in Q4 FY26.
- Domestic Products & Services EBITDA grew 34.9% YoY to ₹59.3 Cr, showing improved operational efficiency.
Sonata Software Limited has announced the grant of 203,333 stock options to eligible employees on August 6, 2026. The grant was approved by the Nomination and Remuneration Committee under the company's 2013 Employee Stock Option Plan. These options will be administered through a Trust, which will allot shares upon exercise. This is a standard administrative procedure for employee compensation and retention.
- Grant of 203,333 stock options approved on August 6, 2026
- Options issued under the Sonata Employee Stock Option Plan 2013
- Shares to be allotted by the Trust upon exercise of options
- Options remain exercisable as long as the employee is in the employment of the company
Financial Performance
Revenue Growth by Segment
International IT Services (IITS) grew 1% QoQ in constant currency to $82 million (INR 730.30 Cr), while the Domestic (SITL) segment contributed INR 854.35 Cr to the total consolidated revenue of INR 2,119.30 Cr in Q2 FY26.
Geographic Revenue Split
North America accounts for over 70% of total revenue, up from 54% three years ago, while India represents the primary domestic market through the SITL business.
Profitability Margins
Net Profit Margin for Q2 FY26 was 5.67% (INR 120.19 Cr profit on INR 2,119.30 Cr revenue). Profit for the half-year (H1 FY26) stood at INR 229.53 Cr, up 8.2% from INR 212.13 Cr in H1 FY25.
EBITDA Margin
Consolidated EBITDA margin was approximately 9.5% in Q2 FY26 (INR 202.17 Cr). The company achieved a 70 bps net EBITDA accretion QoQ after absorbing a 90 bps impact from salary increments, representing a 160 bps gross improvement.
Capital Expenditure
Annual capital expenditure is projected at INR 60-65 Cr, funded by annual cash accruals exceeding INR 150 Cr.
Credit Rating & Borrowing
CRISIL maintains a 'Stable' rating with a healthy gearing of 0.13 times. Total borrowings as of September 30, 2025, include INR 398.87 Cr in non-current and INR 199.99 Cr in current financial liabilities.
Operational Drivers
Raw Materials
Employee benefit expenses represent the largest operational cost at INR 422.50 Cr (19.9% of revenue). Purchase of stock-in-trade (software licenses/hardware) for the SITL segment cost INR 1,349.66 Cr in Q2 FY26.
Import Sources
Not explicitly disclosed, but software licenses are primarily sourced from global vendors like Microsoft (USA).
Key Suppliers
Microsoft is the primary strategic partner and supplier for the domestic SITL business segment.
Capacity Expansion
Current talent capacity stands at 6,649 employees as of Q2 FY26. Utilization improved to 87.3% from 86.6% in the previous quarter to drive efficiency.
Raw Material Costs
Purchase of stock-in-trade decreased to INR 1,349.66 Cr in Q2 FY26 from INR 2,227.59 Cr in Q1 FY26, reflecting seasonality and policy changes in the domestic business.
Manufacturing Efficiency
On-site/offshore revenue mix shifted to 43%/57% in Q2 FY26 from 47%/53% in Q1 FY26, improving margins through lower-cost offshore delivery.
Logistics & Distribution
Not a material cost for digital software and services delivery.
Strategic Growth
Expected Growth Rate
15%
Growth Strategy
The company is targeting $250 million in revenue for both Healthcare and BFSI verticals within 3-5 years. Growth is driven by the 'Platformation' framework, aggressive AI/Agentic AI adoption, and expanding the North American footprint which now exceeds 70% of revenue.
Products & Services
IT Consulting, Application Development, Managed Services, Cloud Infrastructure, and Microsoft Software Licensing/Distribution.
Brand Portfolio
Sonata Software, Sonata Information Technology Limited (SITL), and Platformation.
New Products/Services
Agentic AI implementation and AI-powered platform services are expected to drive future deal wins, with a current large deal pipeline of 20-30 deals.
Market Expansion
Focus on scaling the North America business and expanding the Microsoft channel with a sharper focus on the Small and Mid-market Cloud (SMC) segment.
Market Share & Ranking
Not disclosed, but the company is a dominant player in the Indian Microsoft licensing market.
Strategic Alliances
Deep strategic alliance with Microsoft; the company is a leading partner for Microsoft's cloud and business applications.
External Factors
Industry Trends
The industry is shifting toward 'Agentic AI' and digital engineering. Sonata is positioning itself by increasing its BFSI and Healthcare revenue share from 13% to 33% over the last three years to capture higher-growth segments.
Competitive Landscape
Competes with mid-tier and large-cap Indian IT firms like LTIMindtree, Coforge, and Persistent Systems.
Competitive Moat
The 'Platformation' methodology and deep-rooted Microsoft partnership provide a durable competitive advantage in digital transformation projects, making it difficult for clients to switch providers.
Macro Economic Sensitivity
Highly sensitive to US enterprise IT spending and interest rate environments affecting BFSI and TMT client budgets.
Consumer Behavior
Enterprises are delaying discretionary TMT spending while prioritizing AI-driven cost optimization and healthcare digitization.
Geopolitical Risks
70% revenue concentration in North America exposes the company to US regulatory and economic shifts.
Regulatory & Governance
Industry Regulations
Compliant with Ind AS 34 and SEBI Listing Regulations; operations are subject to international data privacy laws (GDPR, CCPA).
Taxation Policy Impact
Effective tax rate for H1 FY26 was approximately 27.4% (INR 86.77 Cr tax on INR 316.30 Cr PBT).
Legal Contingencies
Current tax liabilities (net) stood at INR 155.15 Cr as of September 30, 2025.
Risk Analysis
Key Uncertainties
Ramp-down of the largest BFSI client and decision delays in the largest TMT customer pose near-term revenue risks of approximately 3-5%.
Geographic Concentration Risk
High geographic risk with >70% of revenue derived from North America.
Third Party Dependencies
Significant dependency on Microsoft for the SITL segment's revenue and gross contribution.
Technology Obsolescence Risk
Risk of AI disrupting traditional managed services; mitigated by the company's focus on Agentic AI and digital engineering.
Credit & Counterparty Risk
Trade receivables stood at INR 1,776.84 Cr as of September 30, 2025, with a focus on enterprise-grade clients to ensure quality.
