Sonata Software has announced a board meeting scheduled for February 6, 2026, to consider crucial financial matters including quarterly results and dividend declaration. The company has formally notified both the National Stock Exchange of India Limited and BSE Limited about this upcoming board meeting in compliance with regulatory requirements.

Board Meeting Agenda

The board meeting will address two primary agenda items as outlined in the company's official notice:

Dividend Taxation Framework

The company has highlighted important tax implications for shareholders regarding the potential interim dividend. As per the Finance Act, 2020, dividend income became taxable in shareholders' hands effective April 1, 2020. Consequently, any third interim dividend declared by the board will be subject to tax deducted at source (TDS) according to Income Tax Act, 1961 provisions.

Sonata Software will communicate with shareholders to determine appropriate TDS rates before dividend distribution. This ensures compliance with current taxation regulations while providing clarity to investors about net dividend receipts.

Investor Engagement

Following the board meeting, the company plans to conduct a conference call with analysts and investors. This engagement session will provide stakeholders with detailed insights into the quarterly performance and strategic developments. The company will separately communicate specific details about the conference call timing and participation procedures.

Regulatory Compliance

The board meeting notice has been issued pursuant to Regulation 29(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also referenced Regulation 30 of the same regulations concerning the proposed analyst conference call. All relevant information is available on the company's official website at www.sonata-software.com , ensuring transparent communication with stakeholders.

Sonata Software , a leading IT services and solutions provider, has released its financial results for the second quarter, demonstrating resilience in the face of market headwinds. The company reported a modest growth in revenue along with significant improvements in operational efficiency and profitability.

Financial Highlights

• USD revenue reached $82 million, representing a 1% growth in constant currency terms.
• EBITDA margin improved to 17.3% from 16.6% sequentially, despite wage increment impact of 90 basis points.
• The company secured one large healthcare deal and expanded its AI orderbook from 8% to 10% of the total orderbook.

Revenue and Profitability

Sonata Software's performance in Q2 reflects a mix of challenges and strategic improvements:

The company's EBITDA margin expansion is particularly noteworthy, given the absorption of wage increments during the quarter. This improvement was driven by operational efficiencies, including higher utilization rates, planned offshoring in large deals, and strategic AI implementation across delivery and core functions.

Sector-wise Performance

Sonata Software faced some headwinds in key sectors:

• BFSI (Banking, Financial Services, and Insurance): Experienced significant ramp-down due to organizational changes at its largest client.
• TMT (Technology, Media, and Telecom): Encountered decision delays at its largest customer.

Despite these challenges, the company reported strong performance in other areas:

• Healthcare: Secured a large deal, indicating growth in this vertical.
• AI Initiatives: Expanded AI orderbook, showcasing the company's focus on emerging technologies.

Strategic Initiatives and Outlook

Samir Dhir, MD & CEO of Sonata Software, highlighted the company's strategic focus: "Our ambition is clear. We want to be a differentiated AI modernization engineering firm powered by a proprietary platformation framework."

Key strategic initiatives include:

1. Scaling AI capabilities across the organization.
2. Focusing on large deal wins to drive growth.
3. Sharpening focus across strategic verticals, geographies, and talent development.

The company remains optimistic about its future prospects, with a particular emphasis on AI-driven solutions and modernization engineering leadership.

Conclusion

While Sonata Software faces some near-term challenges, particularly in its BFSI and TMT verticals, the company's strategic initiatives and focus on operational efficiency have yielded positive results in terms of margin improvement. The expansion of its AI orderbook and success in securing large deals in healthcare indicate promising avenues for future growth.

Investors and stakeholders will be watching closely to see how Sonata Software navigates the evolving market conditions and capitalizes on its strengths in AI and modernization engineering in the coming quarters.