Sonata Software (SONATSOFTW) announced its Q3 FY26 results, reporting a 6.1% QoQ increase in consolidated PAT before exceptional items and a 21.4% YoY growth. The company declared an interim dividend of INR 1.25 per share. International IT Services saw revenue of ₹738.6 crores, while domestic products and services reached ₹2,345.9 crores. The company highlighted a Fortune 500 fintech deal and AI contributions to its order book.
Financial Performance Highlights
Sonata Software announced key financial results for Q3 FY26:
- Consolidated revenue reached ₹3,080.6 crores, reflecting a 45.4% QoQ increase.
- EBITDA stood at ₹200.2 crores, a 15.9% QoQ growth.
- PAT before exceptional items grew by 6.1% QoQ and 21.4% YoY, reaching ₹127.5 crores.
- The company’s cash and cash equivalents (gross) totaled ₹564 Crores.
Segment Performance
International IT Services:
- Revenue reached $82.3 million, up 0.4% QoQ.
- EBITDA increased to 19.5% of revenue, a 220bps accretion.
- PAT before exceptional items totaled ₹80.4 crores, representing 3.0% QoQ growth.
Domestic Products & Services:
- Revenue totaled ₹2,345.9 crores, an increase of 68.6% QoQ.
- EBITDA reached ₹56.2 crores, a 20.9% QoQ increase.
- PAT before exceptional items reached ₹47.1 crores, up 11.6% QoQ.
Dividend Announcement
The company declared its third interim dividend for the financial year at ₹1.25 per share, aligning with their commitment to a quarterly interim dividend payout policy.
Exceptional Items
Sonata Software recognized a one-time expense of ₹31.3 crore due to the notification of new Labour Codes, covering gratuity (₹23.3 crore) and leave encashment (₹8.0 crore).
Strategic Developments
The company secured a significant deal in the BFSI vertical with a Fortune 500 fintech client. Investments in Artificial Intelligence contributed to approximately 14% of the overall order book.
Source: BSE
