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Earnings Call

Sonata Software Earnings Call: Key Takeaways

Sonata Software navigated a challenging FY26 with a leadership transition, leveraging an AI-first strategy to offset headwinds in BFSI and TMT segments.

Highlights
Revenue growthInternational revenue flat QoQ in USD; Rupee revenue up 5.5%.
MarginsInternational EBITDA improved 70bps to 20.2% via operational efficiencies.
Order bookQ4 order book at $95 million; AI-led orders reached $16.9 million.
Demand visibilityEncouraging pipeline in digital and AI-led initiatives; decision cycles remain elongated.
Management confidenceBalanced; cautious optimism regarding AI-led transformation despite macro headwinds.

Growth

International services grew 5.5% QoQ in Rupee terms, while domestic growth was muted by a major OEM direct billing shift.

Outlook

Management expects gradual growth improvement in FY27, targeting sustained EBITDA margins around current levels of 18-20%.

Risks

Prolonged decision cycles in AI, client-specific budget contractions in BFSI, and high dependency on Microsoft ecosystem.

Source

Earnings Call filed with NSE, NSE: SONATSOFTW. Summary written with AI assistance from the document.

Read the document ↗

Sonata Software Ltd: key numbers

Share price
₹279.90
Market cap
₹7,849 Cr
Revenue (annual)
₹10,701 Cr
Net profit (annual)
₹464.4 Cr
P/E (TTM)
16.9×Sector 22.1×
Promoter holding
28.17%+0.00% QoQ
FII holding
9.17%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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Sonata Software Partnership

Sonata Software's subsidiary, Sonata Information Technology Limited, has signed a five-year strategic collaboration agreement with AWS to accelerate cloud modernization across India.

Execution
5 years