#India #Financial Performance #Bengaluru #Sonata Software #PAT Growth

Sonata Software's Growth Story

Sonata Software, a prominent player in the modernization engineering sector, has recently announced its robust financial results for the quarter ending on December 31, 2025. The company's consolidated Profit After Tax (PAT), which excludes exceptional items, experienced a noteworthy increase of 6.1% compared to the previous quarter and a remarkable jump of 21.4% year-over-year, signaling a healthy growth trajectory in their financial performance.

In its press release dated February 6, 2026, Sonata reported an impressive consolidated revenue of ₹3,080.6 crores for the quarter, marking a significant 45.4% growth QoQ and an 8.4% increase YoY. The domestic segment, which includes product and service offerings, exhibited extraordinary strength with a revenue surge of 68.6% QoQ, showcasing the company's ability to tap into the growing demand within the Indian market.

Key Financial Highlights

• - International IT Services generated revenues of ₹738.6 crores, reflecting a 1.1% growth QoQ. The operational efficiency in this segment noted an encouraging EBITDA margin increase to 19.5%.
• - Domestic Products and Services demonstrated impressive growth, achieving revenues of ₹2,345.9 crores and an EBITDA of ₹56.2 crores, which was a significant 20.9% increase QoQ.
• - The consolidated PAT before exceptional items reached ₹127.5 crores for the quarter, underlining the company's effective cost management and operational strategies.

To elaborate on the quarterly performance, Mr. Samir Dhir, the Managing Director and CEO, highlighted that the company's strategic focus on significant contracts, particularly within the Banking, Financial Services, and Insurance (BFSI) sectors, played a crucial role in this growth. The company secured a noteworthy deal with a Fortune 500 fintech client, demonstrating its strategic initiatives are beginning to pay off.

Investment in AI and Future Readiness

Sonata's commitment to integrating advanced technologies into its services has been pivotal. Investments in Artificial Intelligence, which contributed around 14% to the overall order book for the quarter, showcase the company's dedication to modernization. Sonata has positioned itself as a leader in this field, focusing on creating efficient digital ecosystems and employing innovative technological solutions.

Mr. Sujit Mohanty, CEO of Sonata Information Technology Limited, emphasized that the company's three-pillar strategy aimed at diversification and resilience is in full swing. By focusing on innovation and a scalable operating model, Sonata is set to navigate the evolving technology landscape effectively.

Moreover, the company announced a consistent interim dividend of ₹1.25 per share, reaffirming its commitment to shareholder returns while sustaining growth investments. Sonata's approach is becoming increasingly strategic, featuring strong relationships with key technology partners, including giants like Microsoft and AWS, which further enhances its service delivery capabilities.

Conclusion

In summary, Sonata Software's financial results highlight a period of substantial growth and stability. With its innovative strategies, strong operational foundations, and growing market presence, the company is poised for continued success. Investors and stakeholders can look forward to further developments as Sonata navigates its growth journey, firmly establishing itself as a leader in modern technology solutions.