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Sonata Software (SONATSOFTW) investor relations material
Sonata Software Q3 25/26 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved resilient Q3 FY26 performance with sequential revenue growth, strong YoY PAT and EBITDA improvement, and robust results in both international and domestic segments, despite headwinds from three large clients in BFSI, TMT, and retail verticals.
Secured two large multi-year deals in BFSI and TMT, with a healthy pipeline of 32 large deals in pursuit, and 40% of active deals classified as large.
Strategic focus on modernization engineering, AI integration, and Platformation framework, with cloud and data revenue share rising from 50% in FY22 to 63% in FY26 YTD.
AI-led order bookings expanded, now comprising 14% of the order book, and eight clients with annualized run rates exceeding $10 million.
Unaudited financial results for Q3 and nine months ended December 31, 2025, were approved, and the re-appointment of Mr. Srikar Reddy as Executive Vice Chairman was announced.
Financial highlights
Consolidated Q3 FY26 revenue: INR 3,080.6 crore, up 45.4% QoQ and 8.4% YoY; nine-month revenue at INR 8,165.1 crore, up 8.3% YoY.
Normalized PAT: INR 127.5 crore, up 6.1% QoQ and 21.4% YoY; reported PAT: INR 104.4 crore (after one-time labor costs); nine-month PAT before exceptional item at INR 357 crore, up 12.6% YoY.
EBITDA for Q3 was INR 200.2 crore, up 15.9% QoQ and 22.4% YoY, with margin at 19.5% (from 17.3% in Q2), driven by operational efficiencies and AI adoption.
International services revenue: $82.3 million, up 0.4% QoQ; domestic business revenue: INR 2,345.9 crore, up 68.6% QoQ.
Interim dividend of INR 1.25 per share declared; cash and cash equivalents gross at INR 564 crore.
Outlook and guidance
Expect current growth trajectory to continue for the next 1–2 quarters, with recovery in BFSI and retail segments post large client impacts.
Large deal pipeline remains robust, with average pursuit cycles of 4–6 quarters; cloud and data expected to continue driving revenue growth.
EBITDA margin guidance remains in the 18–21% range, with no sharp changes anticipated.
Domestic business expected to return to YoY growth by Q2 FY27 at the gross contribution level.
Commitment to quarterly interim dividend payout policy reaffirmed.
- TimeTickerHeadlineOpen
- 6 FebMGY
Record production, strong free cash flow, and disciplined capital returns defined 2025. - 6 FebQNST
Record Q2 revenue, $50.2M net income, HomeBuddy acquisition, and AI drive growth. - 6 FebOPGN
Shareholders will vote on seven key proposals, including a new equity plan and company name change. - 6 FebCDP
2025 FFO/share up 5.8% with strong leasing; 2026 outlook positive amid record defense spending. - 6 FebVTR
2025 saw double-digit SHOP NOI and FFO growth, a raised dividend, and $2.5B in investments. - 6 FebREG
2025 delivered record NOI and FFO growth, with 2026 guidance projecting further gains. - 6 FebMNTS
All stock issuance proposals passed except the share increase, which was not approved. - 6 FebCPT
2025 beat guidance; 2026 sees lower FFO, Sun Belt focus, and major asset sales with share repurchases. - 6 FebKOG
Record growth, robust backlog, and a NOK 5.70 dividend proposal drive future expansion. - 6 FebTSBK
Net income rose 19.8% to $8.22M, with higher margins, strong capital, and a dividend increase.
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