Sonata Software (SONATSOFTW) Q4 25/26 earnings summary

Executive summary

• Leadership transition completed with Rajsekhar Datta Roy appointed CEO effective May 9, 2026, focusing on international business and AI-led strategy.

• Achieved two large deal wins in Q4 FY'26, strengthening the large deal pipeline, with 43% of active pipeline consisting of large deals and 37% involving Fortune 500 clients.

• AI-led order book reached $49 million for FY 2026, now 18% of total order book; AI-led pipeline at $335 million.

• Strategic partnerships with Microsoft and AWS, including recognition as a Microsoft Frontier Partner and AWS Premier Tier status.

• Domestic business showed resilience despite headwinds from a large client moving to direct billing.

Financial highlights

• Q4 FY'26 consolidated revenue: INR 2,536.2 crore, down 17.7% QoQ and 3.1% YoY; FY'26 consolidated revenue: INR 10,701.2 crore, up 5.4% YoY.

• Q4 FY'26 consolidated PAT: INR 130.5 crore, up 25% QoQ and 21.4% YoY; FY'26 PAT: INR 464.4 crore, up 9.3% YoY.

• International services FY'26 revenue: $328.4 million, down 2.1% YoY; INR revenue: 2,948 crore, up 4.2% YoY.

• Domestic business FY'26 revenue: INR 7,772.1 crore, up 5.9% YoY; PAT: INR 171.7 crore, down 3.6% YoY.

• Final dividend recommended at INR 4.15 per share (415% of par value).

Outlook and guidance

• Cautiously optimistic for gradual improvement in growth over the medium term, with AI-led business process transformation and platform modernization as core growth drivers.

• Focus on maintaining EBITDA at current levels while investing in AI and digital transformation.

• Domestic business expected to return to historical growth rates within 1-2 quarters; maintains steady gross contribution growth at 18% CAGR over five years.

• Sustainability targets include net zero emissions by 2050 and 100% ESG-certified tier 1 suppliers.