Sonata Software Limited has informed the Exchange about Transcript
SONATSOFTW · price
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Sonata Software reported Q4 FY25 international services revenue of $81.3M, down 6.6% QoQ due to a steeper-than-expected ramp-down at its largest client and seasonal weakness in the Quant business. Full-year FY25 international revenue grew 3.7% YoY to $335.5M, but EBITDA margin compressed to 17% (from 21% in FY24). The company announced its second-largest deal win in 40 years, a $73M, 5-year TMT modernization contract that will ramp up over the next 2-3 quarters. Consolidated FY25 revenue grew 17.9% to INR 10,157 crores with PAT of INR 424.7 crores and a final dividend of INR 4.4 per share. Management expects the largest client to return to marginal growth from Q1 FY26 and guided AI-enabled services to contribute 20% of revenue over 3 years, while warning of continued softness in retail and manufacturing.
Short-term: Stock may see pressure as Q4 international revenue declined more than expected, though sequential margin recovery (EBITDA up to 16.5% from 14.6%) and visibility on large-deal ramp-up provide some support. Medium-term: The $73M TMT win, healthcare/BFSI momentum (now 35% of international revenue), and recovery in the top client could drive mid-to-high single-digit international services growth in FY26.