Sonata Software Limited has submitted its investor presentation for the quarter and year ended 31st March, 2026, to the National Stock Exchange of India Limited and BSE Limited, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The presentation, filed on 7th May, 2026, outlines the company's financial performance, strategic priorities, and business developments for Q4 FY26. The company has also declared a dividend of ₹4.15 per share for the period.

Financial Highlights

Sonata Software reported strong financial performance for Q4 FY26. Consolidated net profit rose to ₹1.31B compared to ₹1.07B in the same period last year. Revenue stood at ₹25.36B versus ₹26.2B YoY. EBITDA improved to ₹2.08B from ₹1.7B YoY, with EBITDA margin expanding to 8.23% from 6.60% YoY. On a sequential basis, consolidated PAT grew 25.00% QoQ, while International EBITDA accretion stood at 0.7% QoQ and 1.5% YoY. The company's board has recommended a final dividend of 415% for FY'26, equivalent to ₹4.15 per share.

The table below summarises the key financial metrics for Q4 FY26:

International Services Performance

The international services segment demonstrated notable momentum in Q4 FY26. The company won two large deals during the quarter — one in Fintech & Payments (US) focused on Platform & Data Modernization, and another with a PE Company (US) for Modern Engineering. BFSI and HLS verticals continued to remain stable, while the US geography scaled steadily.

The revenue composition for International Services in Q4 FY26 reflected a shift toward Cloud and TMT verticals, as detailed below:

For the full year FY26, Cloud accounted for 48% of International Services revenue, compared to 39% in FY25, reflecting the company's increased focus on Cloud and Data capabilities.

Domestic Business Performance

The domestic business reported mixed trends in Q4 FY26. Cloud contributed approximately 90.2% of domestic revenue, with annuity revenue at approximately 89.3%. Revenue grew 25.1% QoQ, while Gross Contribution grew 1.0% QoQ, EBITDA grew 8.8% QoQ, and PAT grew 1.6% QoQ. DSO for the domestic business stood at 47 days in Q4 FY26, compared to 42 days in Q3 FY26 and 46 days in Q4 FY25.

Workforce and Operational Metrics

As of Q4 FY26, total headcount including the domestic business stood at 6,283. The company's ROCE and RONW metrics for the international business showed improvement across quarters, with ROCE at 24.5% and RONW at 30.3% in Q4 FY26, compared to 18.7% and 23.1% respectively in Q3 FY26, and 16.3% and 19.3% in Q4 FY25.

Strategic Positioning and Partnerships

Sonata Software continues to position itself as a modernization engineering firm, with four strategic pillars guiding its operations. The company has a 30+ year partnership with Microsoft and was named again in the Inner Circle for Microsoft Business Application 2025-26. Key highlights of the Microsoft partnership include:

• $650+ Million per annum revenue contribution to Microsoft
• 3,500+ team members on Microsoft technologies
• 400+ clients across the globe spanning USA, Europe, Asia, India, Australia, and Middle East
• 10 Advanced Specializations in Dynamics 365, Data Analytics, Teams, CAF, M365, Azure, and Copilot
• Recognized as Microsoft Cloud Solution Partner — Azure Expert MSP

The investor presentation is also available on the company's website at www.sonata-software.com .

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.