| Revenue growth | 10.6% YoY consolidated growth; flat 0.1% QoQ International CC growth. |
|---|---|
| Margins | International margins hit by one-time costs, AI investments, and forex losses. |
| Order book | Book-to-bill ratio at a healthy 1.18x; AI order book at $21.4M. |
| Demand visibility | Strong AI-led pipeline growth of 21%; focus on modernization remains high. |
| Management confidence | Optimistic regarding AI strategy despite short-term margin and utilization headwinds. |
Growth
Consolidated revenue grew 10.6% YoY; however, International services margins dropped significantly to 15.4% from 20.2% QoQ.
Outlook
Management expects quarterly EBITDA improvement and full recovery of deal ramp-ups starting Q2 FY27.
Risks
Significant margin dilution from AI investment and forex losses; large deal execution delays impacting utilization rates.
Last quarter's promises, checked
Delivered
- Guided International EBITDA 20.2% → delivered 20.2% (= BEAT)
- Guided International utilization 91.8% → delivered 91.8% (= BEAT)
- Guided International PAT growth 18.7% → delivered 18.7% (= BEAT)
Partly delivered
- Guided recovery of domestic business → delivered 10.2% YoY growth (= PARTIAL)
Missed
- Guided flat International growth → delivered 15.4% margin (= MISS)
- Guided maintain EBITDA levels → delivered margin pressure (= MISS)
Earnings Call Transcript filed with NSE, NSE: SONATSOFTW. Summary written with AI assistance from the document.
Sonata Software Ltd: key numbers
- Share price
- ₹248.10
- Market cap
- ₹6,957 Cr
- Revenue (annual)
- ₹10,701 Cr
- Net profit (annual)
- ₹464.4 Cr
- P/E (TTM)
- 15.0×Sector 21.6×
- Promoter holding
- 28.17%+0.00% QoQ
- FII holding
- 9.17%Current quarter
Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.
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