Sonata Software (SONATSOFTW) Q4 24/25 earnings summary

Executive summary

• Achieved over $1B in revenue with a 15.2% 10-year CAGR, supported by 6,800+ engineers across global locations.

• Strategic focus on modernization engineering, AI-driven solutions, and platformization across four key verticals and five geographies, with significant investments in talent and technology partnerships.

• Won 11 large deals in FY25, including the second largest TCV win in company history and major US technology and BFSI clients.

• Healthcare and BFSI verticals now comprise 35% of business, up from 13% twelve quarters ago, driving diversification and growth.

• Recognized as a Microsoft Fabric Featured Partner, AWS Generative AI Competency, and received workplace and sustainability accolades.

Financial highlights

• FY25 consolidated revenue: ₹10,157.2 crore (+17.9% YoY); PAT after exceptional items: ₹424.7 crore (+37.6% YoY); EPS: ₹15.30 (+37.6% YoY).

• Q4 FY25 consolidated revenue: ₹2,617.2 crore (-7.9% QoQ, +19.4% YoY); Q4 PAT: ₹107.5 crore (+2.4% QoQ, -2.6% YoY).

• FY25 international services revenue: $335.5M (+3.7% YoY USD); domestic revenue: ₹7,340.6 crore (+23.4% YoY).

• Q4 international revenue: $81.3M (-6.6% QoQ, -0.5% YoY); Q4 domestic revenue: ₹1,918.2 crore (-9.1% QoQ).

• OCF to EBITDA ratio at 93.3% for FY25.

Outlook and guidance

• Management confident in long-term growth, with large deal ramp-ups and diversification into Healthcare and BFSI.

• Healthcare and BFSI verticals projected to scale to $250M revenue in 3–5 years.

• Retail and manufacturing expected to see continued softness and possible degrowth in H1 FY26 due to macroeconomic and tariff uncertainties.

• Margin recovery to 20%+ may be delayed by at least one quarter, hinging on revenue growth and large client recovery.

• Focused on verticalization, large deals, and continued partnership with Microsoft, AWS, and other tech leaders.