Transcript on the Analyst Call/Investor Meet held on May 11, 2026
SONATSOFTW · price
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Sonata Software held its Q4 FY2026 analyst call featuring a leadership transition - Rajsekhar Datta Roy appointed CEO focusing on international business after Samir Dhir's departure. International services posted flat USD revenue of $82.4M but EBITDA improved to 20.2% (up 70 bps QoQ) driven by operational efficiency, AI adoption, and better offshore mix. PAT grew 40.6% QoQ to Rs.84.2 Crores. AI-led order book was $49M (18% of total) with a $280M AI pipeline. Domestic business faced headwinds from one large OEM customer moving to direct billing, causing 25% QoQ revenue decline to Rs.1759 Crores, though management expects recovery in FY2027. Consolidated FY2026 PAT was Rs.464.4 Crores (9.3% YoY growth). Management guided for maintaining EBITDA at similar levels while remaining cautiously optimistic on growth.
The stock shows resilient execution with margin improvement despite flat revenue growth. Leadership transition appears smooth with experienced Rajsekhar taking over. Management's guidance to maintain rather than expand margins suggests near-term focus on protecting profitability rather than aggressive growth spending, which may limit upside for shareholders expecting margin expansion.