Sonata Software Limited announced its audited financial results for the quarter and year ended March 31, 2026, at a Board of Directors meeting held on May 7, 2026. The Board approved both standalone and consolidated results and recommended a final dividend of ₹4.15 per equity share (415% on par value of Re. 1/-) for FY26, subject to shareholder approval at the ensuing Annual General Meeting. The dividend will be paid after deducting Tax Deducted at Source (TDS) as applicable under the Finance Act, 2020.

Consolidated Financial Performance

For Q4 FY26, Sonata Software reported a consolidated Profit After Tax (PAT) of ₹130.5 crores, reflecting growth of 25.0% quarter-on-quarter and 21.4% year-on-year. Consolidated revenue for Q4 FY26 stood at ₹2,536.2 crores. For the full year, consolidated PAT stood at ₹464.4 crores, a growth of 9.3% YoY, while total consolidated income for FY26 stood at ₹1,080,578 lakhs compared to ₹1,022,840 lakhs in the previous year. Consolidated EBITDA (before other income, forex and exceptional items) for FY26 stood at ₹741.3 crores, a growth of 7.5% YoY.

The following table summarises key consolidated and standalone financial metrics:

Consolidated Earnings Per Share (EPS) for Q4 FY26 stood at ₹4.71 (basic and diluted), compared to ₹3.76 in Q3 FY26 and ₹3.87 in Q4 FY25. For the full year FY26, basic EPS was ₹16.74 and diluted EPS was ₹16.74, against ₹15.30 and ₹15.28 respectively in FY25.

Segment Performance

The International IT Services segment reported revenue of ₹2,948.0 crores for FY26, a growth of 4.2% YoY, with Q4 FY26 revenue at ₹779.2 crores, up 5.5% QoQ. In USD terms, FY26 revenue stood at $328.4 million, while Q4 FY26 revenue was $82.4 million, with constant currency growth of 0.6% QoQ and 1.1% YoY. Segment EBITDA for FY26 was ₹543.7 crores, up 13.1% YoY, and PAT for FY26 was ₹292.7 crores, up 18.7% YoY. DSO stood at 64 days in Q4 FY26, compared to 71 days in Q3 FY26. Seven new customers were added during the quarter.

The Domestic Products & Services segment recorded FY26 revenue of ₹7,772.1 crores, up 5.9% YoY, with Q4 FY26 revenue at ₹1,759.2 crores. Segment EBITDA for FY26 was ₹197.9 crores, a degrowth of 5.2% YoY, and PAT for FY26 was ₹171.7 crores, a degrowth of 3.6% YoY.

Exceptional Items and Balance Sheet Highlights

During Q4 FY26, the consolidated results included two exceptional items: an impairment loss of ₹9,695 lakhs (USD 10.64 Mn) recognised on receivables from a customer against whom Sonata Software North America Inc. initiated legal proceedings, and a reversal of contingent consideration payable of ₹6,538 lakhs (USD 6.89 Mn) related to the acquisition of Sonata Software Solutions North America, Inc. Additionally, the impact of new labour codes was recognised as an exceptional item of ₹3,128 lakhs for the consolidated entity (comprising gratuity of ₹2,329 lakhs and compensated absences of ₹799 lakhs) in Q3 FY26.

Consolidated cash and cash equivalents (gross) stood at ₹605.5 crores, while net cash and cash equivalents stood at ₹30.7 crores. The Return on Capital Employed (ROCE) improved to 28.1% in Q4 FY26 from 23.3% in Q3 FY26, and Return on Net Worth (RONW) stood at 32.5% in Q4 FY26 compared to 27.7% in Q3 FY26.

Leadership Commentary and CEO Transition

Commenting on the results, Mr. Rajsekhar Datta Roy, CEO-designate of Sonata Software, said: "We won 2 large deals in Q4'26 and remain confident on Sonata's growth momentum, by becoming the strategic partners to our clients to enable the AI modernization journey. We will continue to invest in AI capabilities and partnerships, to further accelerate our pivot to AI."

Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, added: "This quarter, we achieved strong performance in our core cloud platform offerings. We successfully acquired new clients for our cloud services and data protection solutions business areas. We realized YoY growth from key accounts."

The Board noted the expiration of Mr. Samir Dhir's term as Managing Director & CEO effective May 8, 2026, following which he also resigned from the position of Executive Director. Mr. Rajsekhar Datta Roy has been appointed as the Chief Executive Officer of the Company with effect from May 9, 2026.

Auditor and Regulatory Compliance

The statutory auditors, B S R & Co. LLP (Firm Registration No. 101248W/W-100022), issued unmodified opinions on both the standalone and consolidated audited financial results for the quarter and year ended March 31, 2026. The results are available on the company's website at www.sonata-software.com and on the stock exchange websites.

Sonata Software Limited has announced a major leadership transition following its Board of Directors meeting. The company disclosed significant changes in its executive leadership structure, marking the end of one tenure and the beginning of another.

Leadership Transition Details

The Board addressed key leadership changes based on recommendations from the Nomination and Remuneration Committee. The decisions were made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Samir Dhir's Departure and Advisory Role

Mr. Samir Dhir will cease and vacate office as Managing Director & Chief Executive Officer upon the expiration of his term on May 8, 2026. In his resignation letter dated April 25, 2026, Dhir stated that having regard to his personal priorities, he decided not to offer himself for reappointment upon expiration of his term. He also submitted his resignation from the position of Executive Director, effective from the close of business hours on May 8, 2026.

To support continuity and ensure a smooth transition, Samir will continue as an Advisor to the Board of Directors of Sonata Software until December 31, 2026. The Board expressed its deep appreciation for Samir's outstanding leadership and contributions during his tenure. Under his guidance, Sonata Software strengthened its position as a trusted and strategic partner to its customers and successfully advanced the business into its next phase of growth.

New CEO Appointment

The Board approved the appointment of Mr. Rajsekhar Datta Roy as Chief Executive Officer effective May 9, 2026, for a period of 3 years. Roy brings extensive qualifications and experience to the role:

Professional Background:

• Over three decades of experience in scaling practices and leading delivery groups for global clients
• Pivotal role in expanding Sonata Software's Dynamics and Microsoft practices into industry-focused offerings worldwide
• Leadership in strategy, delivery, and go-to-market initiatives
• Experience in product engineering, enterprise systems deployment, and digital transformation programs

Recent Contributions:

• Instrumental in guiding Sonata Software's evolution into an AI-first organization
• Led efforts in advancing a Responsible AI approach
• Developed Sonata Harmoni.AI, a responsible-first AI solution for business process automation and technology modernization
• Key role in improving operational margins through focused execution and technology-led efficiencies

Current Role and Responsibilities

Roy was serving as the Chief Delivery Officer and a key member of Sonata Software's executive leadership team. In that capacity, he was responsible for:

• Global delivery operations
• Transforming the organization to an AI-first delivery model
• Overseeing technology-led efficiency improvements

Company Overview

Sonata Software, with over $1.2 Billion Revenue, is a leading AI-first Modernization Engineering company, powered by its unique Platformation™ framework. The company's 6400+ AI Engineers are helping enterprises transform from systems to intelligent business platforms leveraging partner ecosystem to drive speed, efficiency and growth. Sonata's bouquet of Modernization Engineering Services with AI-first approach cuts across Cloud, Data, AI, Dynamics, Test Automation, and Managed Services.

Regulatory Compliance

The company has fulfilled all disclosure requirements under Regulation 30 of SEBI LODR, providing detailed annexures including the resignation letter and comprehensive profile of the new CEO. The information has been made available on the company's website at www.sonata-software.com , and proper notifications have been sent to both NSE and BSE.