Sonata Software Limited (SONATSOFTW) Earnings Call Transcripts

Sonata Software Limited's Latest Earnings Call - Q4 FY2026

In the fourth quarter of FY 2026, Sonata Software Limited reported a consolidated revenue of INR 2,536.2 crores, reflecting a 3.1% year-on-year decline, while PAT increased by 21.4% year-on-year to INR 130.5 crores. The company highlighted a strong performance in its international business, particularly in AI-led initiatives, with an order book of $16.9 million for the quarter and $49 million for the year. Management maintained a cautious outlook, expecting gradual growth improvement in FY 2027, driven by AI and digital transformation initiatives.

Reported metrics

Guidance from management

Management expects gradual improvement in growth for FY '27, driven by AI and digital transformation initiatives, while maintaining EBITDA margins at similar levels.

What management said

So to add to Raj's update on the business, on the M&A front, we are looking for, in case there is an opportunity come for us with a good prospects in the particularly new technology area, we may evaluate for it. But at present, we don't have any plans specifically to grow the business through the M&A leverage. We will wait for a couple of more quarters, and in the medium-term, we may open up this further.

Yes. So if you look at the large deal pipeline, continues to be strong. I think the overall trajectory hasn't changed. The reason pipeline would have come down is because we have announced 2 large deals this quarter if you see in one of the prepared commentaries. So that is the reason in the short run there will be a drop there. But overall pipeline momentum and the count of large deals, as you can see on that Invest...

What analysts pressed on

Analysts expressed concerns about the lengthening decision cycles in the international business and the impact of client-specific issues on growth. There were questions regarding the sustainability of recent growth in the TMT vertical and the potential for margin compression due to new client acquisitions.

Main topics on the call

• AI-led Order Book Growth — Sonata's AI-led order book reached $16.9 million in Q4 FY '26, contributing to 18% of the overall order book. Management stated, "AI-led pipeline is $280 million as on Q4 '26," indicating strong future growth potential.
• Leadership Transition — Rajsekhar Datta Roy has been appointed as CEO, focusing on international business and AI strategy. The Board expressed confidence in his leadership, stating, "Raj is the right leader to lead the company into the new worl...
• Domestic Business Challenges — The domestic business faced a revenue decline of 25% quarter-on-quarter due to headwinds from a large client. However, management remains optimistic about returning to growth, stating, "We are hopeful and very confident ...
• Margin Stability — EBITDA margins improved to 20.2% in Q4 FY '26, driven by operational efficiencies. Management indicated, "We will continue to strive for it," suggesting a focus on maintaining margins amidst growth investments.

Read the full Sonata Software Limited transcript (Q4 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 27 Sonata Software Limited earnings call transcripts on record, spanning January 27, 2020 to August 7, 2026. Based on this history, Sonata Software Limited reports quarterly. The most recent call on file is dated August 7, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

SONATSOFTW

Exchange

NSEI

Country

IN

Sector

Information Technology

Industry

IT Services

Calls on record

27

First call

January 27, 2020

Most recent

August 7, 2026

Reporting cadence

quarterly