Sonata Software Limited has delivered strong financial performance in the third quarter ended December 31, 2025, showcasing significant growth across both revenue and profitability metrics. The company's Board of Directors, meeting on February 6, 2026, approved the unaudited financial results and announced key corporate decisions including dividend distribution and leadership appointments. The company also released its investor presentation highlighting strategic initiatives and modernization capabilities.

Financial Performance Highlights

The company demonstrated robust consolidated performance with revenue reaching ₹3,080.60 crores, marking substantial growth of 45.4% quarter-on-quarter and 8.4% year-on-year. This strong revenue performance was driven by contributions from both international IT services and domestic products & services segments.

Segment-wise Performance

International IT Services delivered steady progress with revenue of ₹738.60 crores, showing 1.1% quarter-on-quarter growth. In USD terms, Q3 FY26 revenue stood at $82.30 million with 0.4% QoQ growth and 0.3% in constant currency. The segment achieved EBITDA margin of 19.5%, representing 220 basis points improvement quarter-on-quarter. PAT before exceptional item reached ₹80.40 crores with 3.0% QoQ growth.

Domestic Products & Services segment experienced exceptional growth with revenue of ₹2,345.90 crores, representing remarkable 68.6% quarter-on-quarter expansion and 11.1% year-on-year growth. The segment's PAT before exceptional item stood at ₹47.10 crores, showing 11.6% QoQ improvement.

Strategic Modernization Focus

Sonata Software positions itself as a modernization engineering firm powered by its unique PLATFORMATION framework, transitioning from an 80-20 Run-Change model to an 80-20 Change-Run approach. The company has established a strong presence with 6,400+ engineers across US, EU, Asia & ANZ, serving clients across 15+ different nationalities.

Large Deal Wins and AI Integration

The company secured significant large deals during the quarter, including partnerships with Fortune 500 fintech clients and mortgage services companies. Strategic investments in Artificial Intelligence contributed approximately 14% of the overall order book for the quarter. The company has 32 large deals in the pipeline, with these deals typically requiring 4-6 quarters of pursuit on average.

Dividend Declaration and Corporate Actions

The Board approved a third interim dividend of ₹1.25 per equity share (125% on par value of ₹1) for the financial year 2025-26. This dividend distribution aligns with the company's commitment to implement a quarterly interim dividend payout policy.

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.