Sonata Software has been awarded the Microsoft AI Business Solutions Inner Circle Award, marking the fifth time the company has received this recognition. This prestigious award places Sonata Software among the top tier of Microsoft's global AI Business Solutions partners, based on outstanding sales achievements and ability to deliver transformative solutions.

As an Inner Circle partner, Sonata Software gains direct engagement with Microsoft's product teams, providing customers early visibility into new capabilities and faster project outcomes. The company, with $1 billion in revenue, operates as an AI-led Modernization Engineering company with a three-decade collaboration with Microsoft. Sonata Software holds multiple Microsoft certifications including Dynamics Inner Circle membership, Microsoft Fabric launch partner status, and Azure Expert MSP designation.

In addition to this achievement, Sonata Software has announced that the recent changes in U.S. H1B visa regulations will have minimal impact on its operations. The company's statement comes in response to the new regulations introduced by the U.S. Government, which impose a substantial one-time fee of $100,000.00 per new H-1B petition.

Key Points

• New Regulation: The U.S. Government introduced a new $100,000.00 fee for each new H-1B visa petition.
• Minimal Business Impact: Sonata Software reports that H-1B visa utilization is not material to its operations.
• Existing Employees Unaffected: Current H-1B employees and contractors of Sonata Software will not be impacted by the new regulations.
• Service Continuity Assured: The company's investments in workforce planning, visa compliance, and global mobility initiatives ensure uninterrupted client service.

Strategic Focus and Adaptability

Sonata Software emphasized its strategic approach to navigating these regulatory changes:

1. Local and Nearshore Expansion: The company is focusing on expanding its local and nearshore delivery centers.
2. Global Delivery Model: This expansion strengthens the resilience of Sonata's global delivery model.
3. Modernization Engineering: The strategy aligns with the company's Modernization Engineering value proposition.

Proactive Monitoring and Communication

In its official communication to the National Stock Exchange of India and BSE Limited, Sonata Software stated:

"The Company is closely monitoring regulatory developments and will provide timely updates should there be any changes requiring client or stakeholder attention."

Conclusion

Sonata Software's proactive assessment and strategic positioning appear to mitigate potential disruptions from the new H-1B visa regulations. The company's focus on local hiring and global delivery centers demonstrates its adaptability to changing international workforce regulations while maintaining its commitment to client service and operational efficiency.

The recent Microsoft AI Business Solutions Inner Circle Award further solidifies Sonata Software's position as a leading player in the technology solutions industry, showcasing its expertise in AI and business solutions.

Investors and stakeholders can find more information on these developments on Sonata Software's official website at www.sonata-software.com .

Sonata Software (INE269A01021) led a strong performance in the technology sector on Thursday, with its shares soaring 8.02% to close at Rs 421.50. The company's impressive gains were part of a broader rally that saw other tech stocks, including Newgen Software and Zen Technologies, also posting significant increases.

Tech Sector Outperforms

The technology sector showed robust performance, outpacing the broader market:

• Sonata Software: Up 8.02% to Rs 421.50
• Newgen Software: Climbed 7.05% to Rs 947.00
• Zen Technologies: Advanced 5.00% to Rs 1,621.30

These gains were particularly noteworthy as they surpassed the Nifty IT index, which itself saw a healthy increase of 1.70%.

Market Context

The strong performance of these tech stocks occurred against a backdrop of overall market optimism. The broader Indian market rallied, with both the Nifty 50 and Sensex trading nearly 0.5% higher. This positive sentiment was largely attributed to the U.S. Federal Reserve's decision to cut benchmark lending rates by 25 basis points, bringing the range to 4-4.25%.

Analyst Perspectives

Analyst coverage for these tech stocks reveals mixed outlooks:

Sonata Software, in particular, shows a favorable analyst sentiment with a majority of buy ratings and no sell ratings, although its upside potential is the lowest among the three at 6.9%.

The varied analyst opinions across these tech stocks highlight the complex dynamics within the sector, with each company facing unique opportunities and challenges in the current market environment.

As the technology sector continues to evolve rapidly, investors and market watchers will be keen to see if Sonata Software and its peers can maintain this momentum in the face of global economic shifts and industry-specific trends.