Sonata Software reported FY26 net sales of ₹10,701 crore, a 5.4% increase. EBITDA grew 11.2% and PAT rose 9.4%. The company is focusing on AI modernization and cloud services.
Sonata Software FY26 Results: Revenue Growth and Margin Expansion
Sonata Software Ltd. has reported its financial results for the fiscal year 2025-26, with net sales reaching ₹10,701.24 crore, marking a 5.4% increase from ₹10,157.25 crore in FY 2024-25.
Reader Takeaway: Steady revenue growth and improved operating profit driven by AI focus.
What just happened
The company announced its financial figures for the fiscal year ending March 2026. Key highlights include:
- Net Sales: ₹10,701.24 crore (up 5.4% from FY25)
- EBITDA: ₹845.79 crore (up 11.2% from FY25)
- Profit After Tax (PAT): ₹464.39 crore (up 9.4% from FY25)
- Earnings Per Share (EPS): ₹16.74
Why this matters
These results indicate steady revenue growth and a significant improvement in operating profitability, as reflected by the 11.2% rise in EBITDA. The company's strategic push towards becoming an AI-first Modernization Engineering firm, leveraging platforms like Harmoni.AI, appears to be driving these positive financial outcomes. The proposed final dividend of ₹4.15 per share also offers a direct return to shareholders.
The backstory
Sonata Software has been actively transforming its business model, emphasizing AI and cloud-led digital transformation services. This includes strengthening partnerships with major technology providers like Microsoft and AWS, positioning itself as a key player in modern IT services. The company has also seen a recent leadership transition with the appointment of Rajsekhar Datta Roy as CEO, effective May 9, 2026.
What changes now
With a clear AI-first strategy and strong partnerships, Sonata Software is poised for continued growth in the digital engineering space. Investors will be looking for how the new CEO, Rajsekhar Datta Roy, manages client concentration risks and leverages the company's AI pipeline, which represents 30% of its total pipeline.
Risks to watch
The company faces market headwinds due to ongoing economic uncertainty and geopolitical conflicts, which could impact client spending. Additionally, client concentration, particularly in the Direct Core business, remains a point of concern that management is actively monitoring.
Peer comparison
While specific peer comparison data is not provided in the filing, Sonata Software's performance in AI and cloud services places it in a competitive landscape with other IT services firms focusing on digital transformation. The company's emphasis on proprietary AI platforms differentiates its approach.
Context metrics (time-bound)
- FY 2025-26 Net Sales: ₹10,701.24 crore
- FY 2024-25 Net Sales: ₹10,157.25 crore
- FY 2025-26 EBITDA: ₹845.79 crore
- FY 2024-25 EBITDA: ₹760.40 crore
- EBITDA Margin FY26: 8% (vs 7% in FY25)
What to track next
Investors should monitor the company's ability to convert its strong AI pipeline into large deal ramp-ups, the effectiveness of the new leadership in navigating market challenges, and any updates on managing client concentration risks.