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Sonata Software Reports Impressive Q4'26 Performance

In a recently released financial report, Sonata Software, an established leader in Modernization Engineering, showcased impressive consolidated profits after tax (PAT) growth of 25.0% quarter-over-quarter (QoQ) and 21.4% year-over-year (YoY) for the fourth quarter of 2026. The surge in earnings reflects their strategic initiatives and a focus on AI modernization.

For the fiscal year ending March 31, 2026, Sonata reported revenues totaling ₹10,701.2 crores, a gain of 5.4% compared to the previous year. The company recorded a consolidated revenue of ₹2,536.2 crores for Q4'26 with a significant quarterly growth in PAT achieving ₹130.5 crores.

Financial Highlights

• - International IT Services: For FY'26, revenues reached ₹2,948.0 crores, increasing by 4.2% YoY. In USD, this equates to approximately $328.4 million.
• - Domestic Products & Services: The revenue was ₹7,772.1 crores, up by 5.9% YoY. However, domestic product services revenue for Q4'26 saw a decline of 25% compared to the previous quarter.
• - EBITDA Growth: The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for FY'26 stood at ₹741.3 crores, marking a YoY growth of 7.5%.

Dividend Recommendation

Given the strong financial performance, Sonata Software has proposed a final dividend of 415% for FY'26, reflecting confidence in its ongoing growth strategy. This comes in tandem with the company's commitment to continue investing heavily in AI capabilities and partnerships to enhance their service offerings.

Strategic Partnerships and Growth Plans

Sonata Software is focusing on becoming a strategic partner to its clients in their AI modernization journeys. The CEO-designate, Mr. Rajsekhar Datta Roy, noted that they successfully won two large deals in Q4'26, emphasizing their commitment to driving growth in AI-related services.

The company has also reported success in acquiring new clients, particularly in its core cloud platform offerings and data protection services. Mr. Sujit Mohanty, MD and CEO of Sonata, highlighted the successful onboarding of new customers, further solidifying Sonata's position in the competitive tech landscape.

Looking Ahead

With ongoing investments in AI-led modernization and cloud services, Sonata is poised for sustained growth. They are enhancing their proprietary tools and strengthening collaborations with major partners, including Microsoft and AWS, to expand their AI-first offerings.

Headquartered in Bengaluru, Sonata Software, which generates over $1.2 billion in annual revenue, continues to be a key player in driving digital transformation across various industries, including banking, healthcare, and manufacturing. Through its unique Platformation™ framework, Sonata is committed to evolving business operations into intelligent platforms, enabling organizations to leverage technology for greater efficiency and growth.

In summary, Sonata Software's strong financial results not only depict a robust growth trajectory but also signify its strategic commitment towards becoming an integral player in AI modernization, setting a promising future for the company and its stakeholders.