Sonata Software Reports Impressive FY 25 Results with 440% Final Dividend and Positive EBITDA Growth

Sonata Software Reports Outstanding FY 25 Results

On May 7, 2025, Sonata Software, a prominent player in Modernization Engineering, released its audited financial results for the fiscal year ending March 31, 2025, showcasing its commitment to growth and profitability. The company announced a staggering final dividend of 440%, reflecting its robust financial standing and dedication to shareholder returns.

Financial Performance Overview

In the realm of international IT services, Sonata reported revenues for FY 25 amounting to ₹2,829.7 crores, marking an increase of 5.6% year-on-year. However, the fourth quarter indicated a slight QoQ decline of 4.0%, bringing the latest quarter to ₹702.3 crores. Despite this decrease, Sonata's overall year-on-year performance remains commendable, demonstrating resilience in a challenging market.

Sonata's EBITDA for international IT services stood at ₹480.5 crores, reflecting a decrease of 14.7% from the previous fiscal year. Nonetheless, Q4 saw an 8% increase from the previous quarter, resulting in ₹115.7 crores. This improvement showcases the company's capacity to enhance operational efficiency amid fluctuating demand.

Net profit after taxes (PAT) post-exceptional items reached ₹246.6 crores, representing a significant 69.9% increase when compared to FY 24, where PAT amounted to ₹145.1 crores. In Q4, the PAT was ₹62.3 crores, showcasing a 9.5% increase from Q3.

Highlights and Strategies

Mr. Samir Dhir, Managing Director and CEO of Sonata Software, emphasized the company's commitment to modernization services and noted that Q4 saw the acquisition of several large deals across different sectors. He highlighted how Sonata’s focus on diversification is paying off, particularly in the healthcare and BFSI verticals, which have grown substantially over the past three years, now constituting a major portion of their business.

Additionally, Mr. Sujit Mohanty, Managing Director and CEO of Sonata Information Technology Limited, praised the steady contract renewals at enhanced values despite facing sectoral challenges. He singled out their cloud-led transformation strategy as a driving force in capturing new customer segments.

Domestic Business Performance

On the domestic front, revenues from products and services totaled ₹7,340.6 crores for FY 25, soaring by 23.4% YoY. However, the quarter ended with ₹1,918.2 crores, reflecting a 9.1% decrease quarter-over-quarter.

The gross contribution increased to ₹299.1 crores for the full year, marking a growth of 14.8% YoY. In Q4, the contribution stood at ₹78.4 crores, showing a slight drop of 4.3% QoQ.

Moreover, Sonata’s domestic segment posted a PAT of ₹178.1 crores, an increase of 9.0% YoY, while Q4 revealed a slight decline to ₹45.2 crores.

Consolidated Results

Overall, consolidated revenues reached ₹10,157.2 crores, reflecting a YoY growth of 17.9%. The company's consolidated EBITDA for FY 25 dropped by 5.2% to ₹689.3 crores; however, Q4's EBITDA registered a 5.8% increase to ₹172.5 crores. The PAT after exceptional items for FY 25 stood at ₹424.7 crores, a 37.6% increase from the previous year.

With cash and cash equivalents hitting ₹262 crores in Q4 25, Sonata's financial position remains strong, allowing for further investment in modernization efforts and growth opportunities.

The Future Ahead

In conclusion, Sonata Software's financial results present a blend of impressive growth within its domestic segment while navigating challenges in international services. The company's emphasis on modernization, client-centric solutions, and strategic partnerships positions it strongly for continuing adaptability and success in future markets. Sonata's future growth will undoubtedly be driven by its innovative approach and dedication to delivering value to its clients and shareholders alike.