Sonata Software Q4 PAT Rises 25% Sequentially, Revenue Down 18%

Sonata Software on May 6 reported a 25% sequential rise in consolidated net profit for the March quarter, aided by growth in its international IT services business and increased demand for AI-led modernisation projects.

The company posted a consolidated profit after tax (PAT) of ₹130.5 crore in Q4FY26, up 25% quarter-on-quarter and 21.4% year-on-year (YoY). 

Consolidated topline for the quarter stood at ₹2,536.2 crore, down 17.7% sequentially and 3.1% YoY, as domestic product and services revenue saw a 25% sequential decline.

EBITDA before other income, forex and exceptional items rose 4.2% sequentially to ₹208.7 crore.

For the full fiscal year FY26, Sonata reported consolidated revenue of ₹10,701.2 crore, up 5.4% YoY, while PAT rose 9.3% to ₹464.4 crore.

Sonata said it won two large deals during the quarter and is positioning itself as a strategic partner for enterprises undertaking AI modernisation initiatives.

“We won two large deals in Q4FY26 and remain confident in Sonata’s growth momentum, by becoming the strategic partners to our clients to enable the AI modernisation journey,” said Rajsekhar Datta Roy, CEO-designate of the company. “We will continue to invest in AI capabilities and partnerships to further accelerate our pivot to AI.”

The company has been increasing its focus on AI-led services through its Harmoni.AI platform and agentic AI offerings. Sonata said over 90% of its workforce has been AI-trained as it pushes deeper into enterprise AI adoption, cloud transformation and automation services.

Its international IT services business reported revenue of ₹779.2 crore in the March quarter, up 5.5% sequentially. Segment PAT rose 40.6% quarter-on-quarter to ₹84.2 crore. In dollar terms, the international IT services business reported revenue of $82.4 million, largely flat sequentially.

The company added seven new customers during the quarter. 

In March, Sonata Software informed stock exchanges that its subsidiary, Sonata Software North America has initiated legal proceedings in the United States to recover unpaid dues and damages from one of its clients. The matter was filed before the United States Bankruptcy Court for the District of Delaware.