NSE: SONATSOFTW · BSE: 532221
SONATA SOFTWARE LTD
Provides IT services and software consulting across two geographic segments: India (61.2% of segment revenue at ₹6,556.9 crore) and other than India (38.8% at ₹4,161.05 crore). The international business delivers IT services to global clients in BFSI, TMT and other sectors, with EBITDA margin of 20.2% in Q4 FY26. The company has built an AI-focused portfolio, with 6,400+ AI engineers and 90% of the workforce AI-capable. The domestic business handles IT distribution, OEM client relationships, and proprietary products, with SMC and corporate segments growing 27% YoY; the segment faced headwinds from one large OEM client shifting to direct billing. Employee costs are the largest expense at 14.3% of revenue, with depreciation at 1.0% and capex at 0.7% of revenue. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. India (61%), Other than India (39%). Asset-light IT services and software consulting with AI-led focus
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 5,553 | 7,449 | 8,613 | 10,157 | 10,701 |
| EBITDA (ex other income) | 464 | 604 | 553 | 689 | 678 |
| margin % | 8.4 | 8.1 | 6.4 | 6.8 | 6.3 |
| Owners' profit | 376 | 452 | 309 | 425 | 464 |
| EPS, as reported (₹) | 36.23 | 32.58 | 11.12 | 15.30 | 16.74 |
| ROE % · ROCE % | 34.2 · 41.0 | 34.7 · 28.1 | 21.9 · 26.6 | 24.9 · 30.1 | 24.4 · 27.6 |
| Debt / equity (x) | 0.03 | 0.38 | 0.48 | 0.26 | 0.30 |
| Cash from operations | 486 | 268 | 281 | 644 | 538 |
| Capex | (10) | (41) | (25) | (43) | (70) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2,170 | 2,843 | 2,617 | 2,965 | 2,119 | 3,081 | 2,536 | 3,279 |
| Profit before tax | 144 | 137 | 151 | 153 | 164 | 141 | 170 | 137 |
| Net profit | 106 | 105 | 108 | 109 | 120 | 104 | 131 | 108 |
| EPS (₹) | 3.84 | 3.78 | 3.87 | 3.94 | 4.33 | 3.76 | 4.71 | 3.91 |
Exhibit 3: Segment revenue, FY26
| Segment | Revenue, ₹ crore | Share % |
|---|---|---|
| India | 6,557 | 61.2 |
| Other than India | 4,161 | 38.8 |
| Total, before eliminations | 10,718 | 100.0 |
Exhibit 4: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| TATA CONSULTANCY SERV LT | 8,87,298 | 17.8 | 8.18 | 12.2 | 45.6 | 53.9 | 10.2 | 26.9 |
| INFOSYS LIMITED | 4,55,550 | 15.2 | 4.88 | 9.6 | 31.6 | 38.6 | 12.2 | 25.7 |
| HCL TECHNOLOGIES LTD | 3,78,281 | 21.6 | 5.03 | 13.6 | 22.1 | 26.2 | 11.5 | 20.9 |
| WIPRO LTD | 1,82,720 | 14.6 | 2.07 | 8.7 | 15.0 | 17.1 | 8.4 | 22.9 |
| TECH MAHINDRA LIMITED | 1,74,293 | 30.7 | 5.79 | 19.5 | 16.0 | 18.8 | 8.5 | 16.8 |
| LTM LIMITED | 1,21,357 | 23.2 | 5.03 | 14.7 | 20.7 | 24.8 | 27.9 | 20.0 |
| PERSISTENT SYSTEMS LTD | 91,811 | 47.3 | 11.71 | 31.4 | 23.8 | 28.5 | 28.6 | 17.8 |
| COFORGE LIMITED | 86,606 | 39.8 | 8.95 | 30.9 | 18.0 | 17.2 | 28.6 | 18.6 |
Exhibit 5: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 13.7 | 15.0 | 27 of 65 | 59% |
| P/B | 3.3 | 2.6 | 36 of 65 | 45% |
| ROCE | 25.5 | 14.2 | 11 of 76 | 87% |
| ROE | 24.4 | 11.5 | 5 of 64 | 94% |
| Debt / Equity | 0.3 | 0.0 | 51 of 65 | 22% |
| EBITDA margin | 5.4 | 18.4 | 50 of 65 | 23% |
| Revenue growth | 10.6 | 10.6 | 32 of 63 | 48% |
| Profit growth | (1.1) | 6.7 | 37 of 62 | 41% |
| Market cap | 6348 | 419 | 20 of 76 | 75% |
Exhibit 6: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 15 Oct 2026 · Quarterly compliance certificate from registrar under SEBI Reg 74(5) | compliance | minimal | — | — |
| 7 Oct 2026 · Sonata Software wins Microsoft AI Inner Circle Award for 2026-2027 | compliance | low | — | — |
| 30 Sept 2026 · Sonata Software closes trading window ahead of Q2 FY26 results declaration | compliance | minimal | — | — |
| 15 Sept 2026 · Notice of IEPF transfer of shares published in newspapers | compliance | minimal | — | — |
| 15 Sept 2026 · Sonata signs 5-year cloud deal with AWS for India market | compliance | medium | — | — |
| 4 Sept 2026 · Sonata Software management meets six institutional investors | investor communications | low | — | — |
| 25 Aug 2026 · Merger of wholly owned subsidiary Encore IT with Sonata effective | strategic transactions | medium | — | — |
| 18 Aug 2026 · Sonata Software holds one-on-one investor meet with Invesco | investor communications | low | — | — |
| 17 Aug 2026 · Sonata Software appoints Hariprasad Rebala as Chief AI Officer | management changes | high | — | — |
| 11 Aug 2026 · Q1 FY27: Revenue up 10.6% YoY, EBITDA dips to 15.4%, AI pipeline grows | investor communications | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.