Sonata Software reported a 13.3% sequential rise in consolidated revenue to ₹2,965.2 crore for the quarter ended June 30, 2025 (Q1 FY26), despite margin pressure and softness in parts of its business.
The net profit rose marginally by 1.7% QoQ to ₹109.3 crore, while EBITDA declined 7.6% QoQ to ₹159.6 crore.
The company remains bullish on long-term growth, particularly led by AI. CEO Samir Dhir said, “We secured three large deals—two in BFSI and one in TMT—underscoring our focus on large deals and execution strength.”
Dhir added that the company’s investments in healthcare and BFSI have scaled from 13% to 32% of revenue over three years. “As clients accelerate modernisation to stay competitive, we remain confident in our long-term growth trajectory,” he added.
In the international segment, revenue stood at $81.8 million, marking a 0.6% growth QoQ in reported terms but a 0.9% decline in constant currency. In rupee terms, revenue slipped 0.3% to ₹699.9 crore.
The EBITDA margin stood at 16.6%, flat compared to the previous quarter. Net profit grew by 13.5% QoQ to ₹70.7 crore.
During the quarter, Sonata added seven new clients, including a landmark $73 million AI-led digital modernisation deal with a major US-based TMT company. Dhir emphasised that this deal highlights Sonata’s growing reputation in the AI space.
The domestic products and services segment posted ₹2,274.7 crore in revenue, up 18.6% QoQ. However, profitability in this segment weakened. Gross contribution fell 12.6% to ₹68.5 crore, while EBITDA dropped 22.1% to ₹44 crore. Net profit declined 14.6% to ₹38.6 crore.
Mr. Sujit Mohanty, MD & CEO of Sonata Information,m said, “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.”
Despite the topline growth, the company reported a negative net cash position of ₹62.5 crore, even though gross cash and equivalents stood at ₹600 crore.
Compared to Q4 FY25, Sonata posted stronger revenue growth this quarter, especially in the domestic business. In Q4, consolidated revenue stood at ₹2,617.2 crore, while net profit was slightly lower at ₹107.53 crore.
However, Q1’s EBITDA dip and margin pressure raise concerns about operational efficiency.
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