Sonata Software (SONATSOFTW) announced its Q3 FY26 results, reporting a 6.1% QoQ increase in consolidated PAT before exceptional items and declaring an interim dividend of INR 1.25 per share. The company secured a significant deal in the BFSI sector, with Artificial Intelligence contributions reaching approximately 14% of the total order book. International IT Services showed steady progress while the domestic business delivered seasonally strong results.
Financial Performance Highlights
Sonata Software reported the following key consolidated figures for Q3 FY26:
- Revenue: ₹3,080.6 crores, a 45.4% increase QoQ.
- EBITDA: ₹200.2 crores, up 15.9% QoQ.
- PAT (before exceptional item): ₹127.5 crores, representing a 6.1% increase QoQ and 21.4% increase YoY.
- PAT (post exceptional item): ₹104.4 crores after recognizing the new Labour Codes, with an incremental expense related to past service costs for employee benefits (₹31.3 crore).
Dividend Announcement
The Board declared its third interim dividend for the financial year at ₹1.25 per share, reaffirming its commitment to a quarterly interim dividend payout policy.
Segment Performance
International IT Services:
- Revenue: ₹738.6 crores, a 1.1% increase QoQ.
- EBITDA margin: 19.5%.
- Secured a large deal within the BFSI vertical, specifically with a Fortune 500 fintech client.
- Artificial Intelligence-related contributions were approximately 14% of the order book.
Domestic Products & Services:
- Revenue: ₹2,345.9 crores, a 68.6% increase QoQ.
- Gross contribution: ₹76.1 crores, up 10.8% QoQ.
Key Management Commentary
Samir Dhir, MD & CEO, highlighted the steady progress in International IT Services, significant PAT improvements in the last two quarters, and securing a large BFSI deal. He also emphasized the role of strategic investments in Artificial Intelligence.
Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, noted the strong performance in the domestic business and the three-pillar strategy aimed at building a scaled and resilient operating model.
Other Key Updates
- Receiving approval for re-appointment of Mr. Srikar Reddy as Executive Vice Chairman and Whole-time Director w.e.f. April 4, 2026, until April 3, 2028.
Source: BSE
