#India #Mumbai #Sonata Software #Q2 Results #Interim Dividend

Sonata Software Reports Strong Financial Performance in Q2 2025

Sonata Software (NSE: SONATSOFTW) (BSE: 532221), a recognized leader in modernization engineering, recently released its unaudited financial results for the quarter and half-year ending September 30, 2025. The company has shown a robust growth trajectory, particularly with a consolidated Profit After Tax (PAT) increase of 10% quarter-on-quarter. This impressive performance has led to the declaration of a second interim dividend of ₹1.25 per share, aligning with its commitment to a quarterly payout structure.

Financial Highlights

For the quarter ending September 30, 2025, Sonata reported the following financial performance indicators:

• - Revenues:

- International IT Services: ₹730.3 crores (up 4.3% QoQ)
- Domestic Products & Services: ₹1,391.3 crores (down 38.8% QoQ)
- Consolidated Revenue: ₹2,119.3 crores (down 28.5% QoQ)

• - EBITDA:

- Consolidated EBITDA stood at ₹172.7 crores (up 8.2% QoQ)

• - Profit After Tax (PAT):

- Consolidated PAT reached ₹120.2 crores, reflecting a 10.0% increase from the previous quarter.

Commentary from Management

In discussing the quarter's results, CEO Mr. Samir Dhir noted a steady progress in international IT services, emphasizing the importance of large deals in healthcare, a key sector for the company. He highlighted that AI-led orders constitute about 10% of the total order book for the quarter, showcasing Sonata's strategic investments in artificial intelligence as a growth driver.

Mr. Sujit Mohanty, CEO of Sonata Information Technology Ltd., echoed similar sentiments, stating that the company continues to maintain its focus on expanding growth in Microsoft’s Small and Medium-sized Business (SMB) sector while reinforcing partnerships with Independent Software Vendors (ISVs).

Key Metrics and Strategic Focus

During Q2 2025, Sonata's performance was characterized by the following:

• - Growth in International IT Services:

- Revenue in USD terms stood at $82.0 million, marking a growth of 0.2% QoQ with a consistent currency growth rate.

• - Domestic Market Performance:

- Although domestic revenue faced a significant decline, strategic efforts are in place to identify and leverage opportunities within the sector.

Dividend Declaration

In a move to enhance shareholder value, Sonata announced an interim dividend of ₹1.25 per share as part of its ongoing strategy to reward investors while maintaining a strong growth outlook for the future.

Conclusion

Overall, Sonata Software’s current fiscal performance demonstrates resilience and a strategic focus on modernization and AI-driven solutions. The company’s established position in the market, coupled with proactive management strategies, paints a positive picture for sustained growth prospects in both international and domestic sectors. As Sonata navigates market challenges, its commitment to innovation and client success remains pivotal in driving future revenues and profitability.

For more information about Sonata Software and its offerings, visit Sonata Software.