Sonata Software Q1 FY26 Consolidated PAT Grew 1.7% QoQ, And Announces First Interim Dividend of Rupees 1.25 Per Share

PRNewswire
Mumbai (Maharashtra) [India], July 31: Sonata Software (NSE: SONATSOFTW) (BSE: 532221), a leading Modernization Engineering Company, today reported its unaudited financial results for the Quarter ended June 30, 2025.

Commenting on the Q1 performance, Mr. Samir Dhir, MD & CEO of Sonata Software said, "International IT Services Q1 marked steady progress with revenue growth of 0.6% QoQ. We secured three large deals - two in BFSI and one in TMT - underscoring our focus on large deals and execution strength. Our focused investments in Healthcare and BFSI have scaled from 13% to 32% of revenue over three years, validating our diversification strategy. As clients accelerate modernization to stay competitive, we remain confident in our long-term growth trajectory."
Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited added, "We gained new clients in cloud and data protection services. Our continued investments and partnerships with leading cloud providers position us well to grow revenue from cloud-managed services in the coming quarters."
Financial Highlights for Q1'26:
* International IT Services:
* In USD terms, revenue for Q1'26 stood at $81.8 million, showing a growth of 0.6% QoQ and in CC terms, showing a decline of 0.9% QoQ.
* In Rupee terms, revenue for Q1'26 stood at ₹699.9 crores, showing a decline of 0.3% QoQ.
* EBITDA (before other income and forex) for Q1'26 stood at 16.6%, showing a growth of 0.1bps QoQ.
* PAT for Q1'26 stood at ₹70.7 crores, showing a growth of 13.5% QoQ
* DSO stood at 62 days in Q1'26, compared to 61 days in Q4'25.
* ROCE stood at 14.7% in Q1'26, compared to 16.3% in Q4'25.
* RONW stood at 20.9% in Q1'26, compared to 19.3% in Q4'25.
* 7 new customers were added during the quarter, including a mega deal of $73 M AI-led Digital Modernization Deal with a Leading US TMT Company.
* Domestic Products & Services:
* Revenue for Q1'26 stood at ₹2274.7 crores, showing a growth of 18.6% QoQ.
* Gross contribution for Q1'26 stood at ₹68.5 crores, showing a decline of 12.6% QoQ.
* EBITDA (before other income and forex) for Q1'26 stood at ₹44.0 crores, showing a decline of 22.1% QoQ.
* PAT for Q1'26 stood at ₹38.6 crores, showing a decline of 14.6% QoQ.
* DSO stood at 63 days in Q1'26, compared to 46 days in Q4'25.
* ROCE stood at 33.6% in Q1'26, compared to 43.2% in Q4'25.
* RONW stood at 32.5% in Q1'26, compared to 47.7% in Q4'25.
* Consolidated:
* Revenue for Q1'26 stood at ₹2,965.2 crores, showing a growth of 13.3%.
* EBITDA (before other income and forex) for Q1'26 stood at ₹159.6 crores, showing a decline of 7.6% QoQ.
* PAT for Q1'26 stood at ₹109.3 crores, growth of 1.7% QoQ.
* Cash and cash equivalents (gross) stood at INR 600 Crs. and (net) stood at negative ₹ 62.5 Crores in Q1'26.
* ROCE stood at 18.5% in Q1'26, compared to 21.9% in Q4'25.
* RONW stood at 24.0% in Q1'26, compared to 25.2% in Q4'25.
About Sonata Software Limited
In today's market, there is a unique duality in technology adoption. On one side, extreme focus on cost containment by clients, and on the other, deep motivation to modernize their Digital storefronts to attract more consumers and B2B customers.
Sonata Software, with $1 billion revenue, is the leading Modernization company. Our unique Modernization approach through Platformation.AI helps create efficient and agile digital businesses to drive intelligent ecosystems of the future. Our bouquet of Modernization Engineering services cuts across Data, Cloud, Dynamics, Automation, Cyber Security, and around newer technologies like Generative AI, Microsoft Fabric, and other modernization platforms.
Our unique and innovative Responsible-first AI offering Sonata Harmoni.AI is a comprehensive platform powered by GenAI and encompasses a variety of industry solutions, service delivery platforms, and accelerators. It is distinguished by its embedded ethics, privacy, security, and compliance. We enable our clients to leverage AI in three different ways: i) driving efficiencies, ii) driving higher consumer experience/modern sales, and iii) driving innovative business models.
Headquartered in Bengaluru, India, Sonata Software has a strong global presence, including key regions North America, UK, Europe, APAC, and ANZ. We are one of the fastest growing IT Services companies and a trusted partner of Fortune 500 companies in Banking, Financial Services and Insurance (BFSI); Healthcare and Lifesciences (HLS); Telecom, Media, and Technology (TMT); and Retail, Manufacturing and Distribution (RMD) space.
Sonata Software boasts of a very strong partnership with Microsoft, AWS and many others. We are a proud member of Microsoft AI Partner Council and have also achieved AWS Generative AI Competency. Also, we are a member of the prestigious Inner Circle for Microsoft Business Applications and Featured and Launch Partner for Microsoft Fabric.
About Sonata Information Technology Limited
Sonata Information Technology Limited, our Domestic Business, partners with Indian enterprise customers in their digital transformation journeys. As a digital transformation partner, it helps enterprises adopt and scale cloud solutions, fostering innovation and growth. It also helps customers in managing & maintaining their Hybrid Cloud Platforms and related enterprise IT security environments.
For more information, please visit https://www.sonata-software.com/
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