Sonata Software Files Bankruptcy Petition in the US Against Client Over $10.64 Million in Dues

Sonata Software has informed stock exchanges that its subsidiary, Sonata Software North America (SSNA), has initiated legal proceedings in the United States to recover unpaid dues and damages from one of its clients.

According to a regulatory filing dated March 7, SSNA has filed an involuntary petition under Chapter 7 of the US Bankruptcy Code against OBSA Operating Company LLC.

The matter has been filed before the United States Bankruptcy Court for the District of Delaware.

The filing seeks recovery of outstanding accounts receivable along with contractual damages, with the quantum of claims pegged at $10.64 million.

In the disclosure submitted to the Securities and Exchange Board of India (SEBI), the company said that proceedings have been initiated to collect receivables and related damages from the client.

Sonata said it has reviewed its financial exposure linked to the development, including receivables and existing contractual protections.

“The company has reviewed its exposure in relation to the above development, including receivables and existing contractual protection,” the company said. “However, we expect Q4 FY26 PAT to remain accretive compared with Q3 FY26, supported by certain one-time offsetting factors. Revenues are also expected to be in line with the guidance provided during the February 6 earnings call.”

It posted consolidated revenue of ₹3,080.6 crore for Q3 FY26, up 45.4% QoQ, while EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at ₹200.2 crore, rising 15.9% QoQ before accounting for forex and other items.

The unpaid dues of about $10.65 million (about ₹88-90 crore) represent a modest share of Sonata Software’s quarterly revenue but a more meaningful portion of its annual growth.

The company reported ₹3,080.6 crore in revenue in Q3 FY26, meaning the unpaid amount is roughly 3% of a single quarter’s revenue.

However, when compared with the firm’s incremental annual revenue of about ₹1,544 crore in FY25, the dues amount to around 6% of the revenue added during the year.

OBSA Operating Company is a US-based retail and financial services firm best known for operating the e-commerce brand Fingerhut.

During the Q3 earnings call, Samir Dhir, CEO of Sonata Software, said the company has been facing headwinds from three of its top 10 clients, including a large retail customer that recently scaled down engagements.

He noted that the unexpected ramp-down from the retail client has already been largely absorbed in Q3 and will partially impact Q4, with the company factoring the revenue hit into its forecasts.

Dhir added that while the retail segment may see a more pronounced decline in Q4, Sonata expects the business to return to growth from Q1, supported by new wins in telecom, healthcare and payments technology that help offset pressure from affected clients.