Sonata Software , a leading IT services and solutions company, has reiterated its commitment to ambitious growth targets and expressed optimism about its financial performance in the coming quarters.

Growth Targets Maintained

The company's management has reaffirmed its goal to scale its investment verticals, which include healthcare, life sciences, and banking/financial services, to $250 million in revenue within the next 3-5 years. This target underscores Sonata Software's focus on expanding its presence in these key sectors.

Financial Performance Expectations

Sonata Software has provided a positive outlook for its near-term financial performance:

• EBITDA Improvement: The company expects to see an improvement in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in the third quarter. This anticipated increase in EBITDA suggests potential enhancements in operational efficiency and profitability.

• Higher Profit After Tax: Sonata Software projects higher profit after tax in the second half of the fiscal year compared to the first half. This expectation indicates the company's confidence in its ability to generate increased bottom-line results as the year progresses.

• Utilization Rate Improvements: The company anticipates continued improvements in utilization rates. This expectation is particularly noteworthy as it is driven by AI-powered productivity gains, highlighting Sonata Software's integration of advanced technologies to enhance operational efficiency.

AI-Driven Productivity

The mention of AI-powered productivity gains driving utilization rate improvements is significant. It suggests that Sonata Software is leveraging artificial intelligence technologies to optimize its workforce productivity and resource allocation. This strategic use of AI could potentially lead to improved project delivery times, cost efficiencies, and overall operational performance.

Investor Transparency

In line with regulatory requirements, Sonata Software has been diligent in its investor communications. The company recently uploaded an audio recording of its Analyst/Investor call on its website, ensuring transparency and keeping stakeholders informed about its performance and future outlook.

As Sonata Software continues to pursue its growth targets and implement AI-driven productivity measures, investors and industry observers will be keenly watching the company's performance in the coming quarters. The anticipated improvements in EBITDA, profit after tax, and utilization rates could potentially position Sonata Software for stronger financial results and enhanced market competitiveness.

Sonata Software , a leading Modernization Engineering Company, has reported positive results for the second quarter ended September 30, 2025. The company saw an increase in profitability, showcasing resilience in the market.

Key Financial Highlights

Dividend Announcement

Sonata Software has declared a second interim dividend of ₹1.25 per equity share (125% on par value of Re 1). The record date for the dividend is set for November 21, 2025, with payment to be made on or after December 3, 2025.

Management Commentary

The Board of Directors approved the unaudited financial results for Q2 and the half-year ended September 30, 2025. The company's performance demonstrates its ability to maintain growth and shareholder value in a competitive landscape.

Outlook

The 10% quarter-on-quarter growth in consolidated Profit After Tax (PAT) indicates Sonata Software's strong financial health and operational efficiency. The declaration of a dividend further underscores the company's commitment to delivering value to its shareholders.

Investors and stakeholders may view these results positively, as they reflect the company's ability to generate profit growth. The upcoming dividend payment may also attract income-focused investors.

As Sonata Software continues to navigate the dynamic IT services market, its ability to maintain profitability growth will be crucial for its long-term success and market position.