Sonata Software , a leading modernization engineering company, has reported steady growth in its Q1 financial results, along with significant deal wins and strategic initiatives in AI-led modernization.

Financial Highlights

Sonata Software's consolidated Profit After Tax (PAT) grew by 1.7% quarter-on-quarter (QoQ) to ₹109.30 crores. The company's consolidated revenue stood at ₹2,965.20 crores, marking a 13.3% increase QoQ.

Key financial metrics for Q1 include:

Strategic Developments

Sonata Software has secured $456 million in deal wins as part of its AI-led modernization strategy. The company reported winning three large deals during Q1, including two in the Banking, Financial Services, and Insurance (BFSI) sector and one in the Technology, Media, and Telecom (TMT) sector.

AI and Cloud Initiatives

The company has launched AgentBridge, a new AI-powered platform, and formed a strategic alliance with Microsoft. Sonata's AI pipeline currently stands at $46 million, with an additional $39 million pipeline for Microsoft Fabric projects.

Segment Performance

International IT Services

• Revenue in USD terms grew by 0.6% QoQ to $81.80 million
• EBITDA margin improved by 0.1 basis points QoQ to 16.6%
• Added 7 new customers, including a $73 million AI-led Digital Modernization Deal with a leading US TMT company

Domestic Products & Services

• Revenue grew by 18.6% QoQ to ₹2,274.70 crores
• Gross contribution declined by 12.6% QoQ to ₹68.50 crores

Management Commentary

Mr. Samir Dhir, MD & CEO of Sonata Software, stated, "International IT Services Q1 marked steady progress with revenue growth of 0.6% QoQ. We secured three large deals - two in BFSI and one in TMT - underscoring our focus on large deals and execution strength. Our focused investments in Healthcare and BFSI have scaled from 13% to 32% of revenue over three years, validating our diversification strategy."

Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, added, "We gained new clients in cloud and data protection services. Our continued investments and partnerships with leading cloud providers position us well to grow revenue from cloud-managed services in the coming quarters."

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹1.25 per equity share (125% on par value of ₹1).

Sonata Software continues to focus on scalable growth through BFSI, cloud and data services, and global enterprise transformation initiatives. With its strong deal pipeline and strategic investments in AI and cloud technologies, the company is well-positioned for future growth in the rapidly evolving IT services landscape.

Sonata Software , a leading Modernization Engineering Company, has announced its unaudited financial results for the first quarter, ending June 30. The company reported steady growth and declared an interim dividend, showcasing its financial stability and commitment to shareholder value.

Financial Highlights

Sonata Software's consolidated Profit After Tax (PAT) grew by 1.7% quarter-on-quarter (QoQ) to ₹109.30 crores. The company's consolidated revenue stood at ₹2,965.20 crores, marking a significant 13.3% increase QoQ. Compared to the same period last year, the net profit increased from ₹106.00 crores to ₹109.00 crores, while revenue rose from ₹2,527.00 crores to ₹2,951.00 crores, demonstrating growth in both profitability and top-line performance.

Segment Performance

International IT Services

The International IT Services segment showed resilience with a 0.6% QoQ growth in USD terms, although there was a slight decline of 0.9% in constant currency terms.

Domestic Products & Services

The Domestic Products & Services segment demonstrated strong revenue growth, despite a decline in profitability metrics.

Key Operational Highlights

• Secured three large deals, including two in the BFSI sector and one in the TMT sector
• Added 7 new customers during the quarter
• Landed a mega deal worth $73 million for AI-led Digital Modernization with a leading US TMT company

Dividend Declaration

The Board of Directors has approved an interim dividend of ₹1.25 per equity share (125% on par value of ₹1). The record date for dividend payment is set for August 8, with the payment to be made on or after August 20.

Management Commentary

Mr. Samir Dhir, MD & CEO of Sonata Software, commented on the performance: "International IT Services marked steady progress with revenue growth of 0.6% QoQ. We secured three large deals - two in BFSI and one in TMT - underscoring our focus on large deals and execution strength. Our focused investments in Healthcare and BFSI have scaled from 13% to 32% of revenue over three years, validating our diversification strategy. As clients accelerate modernization to stay competitive, we remain confident in our long-term growth trajectory."

Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, added: "We gained new clients in cloud and data protection services. Our continued investments and partnerships with leading cloud providers position us well to grow revenue from cloud-managed services in the coming quarters."

Financial Position

Sonata Software's results demonstrate the company's ability to navigate challenging market conditions while maintaining growth and shareholder returns. The focus on large deals, strategic investments in key sectors, and partnerships with leading cloud providers position the company well for future growth in the rapidly evolving IT services landscape.

Overall, Sonata Software's performance reflects a positive trajectory, with growth in consolidated revenue and PAT, along with strategic wins in key sectors. The company's commitment to shareholder value is evident through the declaration of an interim dividend, despite the challenges in the global IT services market.