Sonata Software reported strong growth, driven by its modernization and AI-first strategy. Q3 FY’26 saw significant wins in AI, cloud, and data modernization, alongside key partnerships and a focus on delivering value through speed, efficiency, and growth. International Services and Domestic Business both showed robust performance. The company focuses on key verticals and is committed to sustainability with a Net Zero Emission target by 2050.
Strategic Focus
Sonata Software is focused on Modernization Engineering, aiming to transform enterprises by shifting them from a run-change model to a change-run model. This strategy targets both mid-cap and large-cap companies looking for Agile partners. The company emphasizes delivering value through speed, efficiency, and growth.
Key Performance Highlights
Sonata Software’s success is attributed to several factors:
-
Strong performance in AI & Modernization, with AI-led pipeline reaching $335M and AI wins totaling $13.7M.
-
Securing large deals, including two major deals won in Q3 FY’26.
-
Growth in key verticals, including HLS and BFSI.
-
Steady growth in the Domestic Business.
Major Deals and Accounts
Sonata Software has seen a steady increase in large deals, closing 26 new deals with a TCV of $483M between FY22 and to date. The pipeline includes 32 large deals, with notable wins in TMT, Healthcare, and other sectors.
Innovation and Partnerships
Sonata Software is actively innovating and forming strategic partnerships:
-
Launched AgentBridge 5.5, enhancing AI capabilities.
-
Collaborating with Wharton AI & Analytics Initiative and IISc’s FSID to advance AI research and adoption.
-
Key partnership with adesso.
Financial Performance
Consolidated Results:
-
Sonata Software consolidated PAT grew by 6.1% QoQ.
-
Revenue in $mn: 345.8 and INR crs: 3080.6
International Services:
-
Revenue in $Mn: 82.3, a 0.4% QoQ increase and 5.4% YoY increase.
Domestic Business:
-
Revenue increased by 68.5% QoQ.
-
GC grew by 10.8% QoQ, EBITDA by 20.9% QoQ, and PAT by 11.6% QoQ.
Key Verticals and Sustainability
Sonata Software focuses on several key verticals:
-
TMT (Technology, Media, and Telecom)
-
RMD (Retail, Manufacturing, Travel, and Distribution)
-
BFSI (Banking, Financial Services, and Insurance)
-
HLS (Healthcare and Life Sciences)
The company is committed to sustainability, targeting Net Zero Emission by 2050.
Source: BSE
