Sonata Software has announced its financial results for the quarter and year ended March 31, 2026, highlighting significant growth in its core modernization business. The company reported a 25.0% QoQ increase in consolidated Profit After Tax (PAT). Driven by a focus on AI and Cloud modernization, Sonata successfully secured two major large deals during the quarter and continues to expand its partnership ecosystem, particularly within the Microsoft-focused AI and Data services segments.
Financial Highlights for Q4 FY26
Sonata Software delivered robust financial performance for the final quarter of the fiscal year. The company’s consolidated Profit After Tax (PAT) rose by 25.0% QoQ, reaching INR 130.5 crore. Consolidated revenue in dollar terms for the quarter stood at $277.2 million. International services remained a key growth driver, with a 9.3% QoQ increase in EBITDA before forex and other income, reflecting the firm’s improved operational efficiency.
Strategic Wins and Business Scaling
A core pillar of Sonata’s recent success is its focus on AI and Modernization. During Q4, the company saw substantial traction, recording $16.9 million in AI-led project wins and maintaining an AI-led pipeline of $280 million. Furthermore, the company successfully secured two significant large deals in the US market: one with a global Fintech and Payments company for AI-led platform modernization, and another with a Private Equity-backed software holding company for comprehensive managed engineering and cloud support services.
Cloud and Data Transformation
The company continues to aggressively pivot towards high-value services. Cloud and Data offerings now account for 65% of the company’s revenue, demonstrating a successful scaling from 52% recorded in FY24. This transition is supported by a strengthening partnership with global tech giants, with 3,500+ professionals currently dedicated to Microsoft technologies and a $650+ million annual revenue contribution to the partner ecosystem.
Sustainability and Future Outlook
Sonata Software continues to prioritize responsible growth, reaffirming its commitment to Net Zero Emission by 2050. The board has also recommended a final dividend of 415% for FY26, reflecting confidence in the company’s long-term financial health and commitment to delivering value to shareholders. The firm remains focused on its strategy of ‘Change-Run’, helping enterprises accelerate their digital transformation journeys through advanced AI and modernization engineering.
Source: BSE
