Sonata Software Limited has informed the Exchange about Transcript
SONATSOFTW · price
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Sonata Software reported a mixed Q1 FY-26 with International Services revenue at $81.8M, up just 0.6% QoQ but down 1.1% YoY. Consolidated revenue grew 13.3% QoQ to INR 2,965.2 crores, while consolidated PAT (before exceptional items) rose 1.7% QoQ to INR 109.3 crores. EBITDA margin improved marginally to 16.6% from 16.5%, and management reiterated its target of moving closer to 20% by year-end. The company won 3 large deals with order bookings of $105M (book-to-bill of 1.08x), added 7 new logos, and disclosed an AI pipeline of about $46M. Management flagged headwinds from global Retail/Manufacturing softness, budget cuts at two large clients (a High-Tech client and a large US BFSI bank), and potential risk of Microsoft going direct in the domestic SITL business. Management declined to give forward revenue guidance but outlined multi-year targets of $250M from Healthcare + BFSI in 3-5 years and AI services contributing 20% of revenue in 3 years. A first interim dividend of INR 1.25 per share was declared.
Short-term sentiment may be cautious given weak International Services growth, negative YoY in constant currency, and unresolved client budget pressures. However, the dividend declaration, AI pipeline build-up, large-deal momentum, and management's commitment to margin expansion provide a medium-term positive backdrop for shareholders.