Sonata Software reported consolidated revenue of ₹3,279.1 crore for Q1 FY27. The company declared an interim dividend of ₹1.25 per share. Profit was impacted by forex losses.
Sonata Software Ltd FY27 Q1 Results
Consolidated Revenue: ₹3,279.1 crore
Consolidated PAT: ₹108.1 crore
Reader Takeaway: Healthy revenue growth but forex losses impacted profit; AI orderbook shows promise.
What just happened
Sonata Software announced its financial results for the first quarter of FY27, reporting a consolidated revenue of ₹3,279.1 crore. The company’s consolidated Profit After Tax (PAT) stood at ₹108.1 crore. The Board also declared an interim dividend of ₹1.25 per equity share for the financial year 2026-27.
Why this matters
The revenue growth indicates continued demand for the company’s services. However, the PAT was affected by foreign exchange fluctuations, which included a loss of ₹7.4 crore in Q1 FY27, a reversal from a gain of ₹28 crore in the previous quarter. This highlights the sensitivity of the company’s profitability to currency movements.
The company also highlighted significant growth in its AI-led business pipeline and orderbook, with the AI-led orderbook increasing by 27% quarter-on-quarter. This strategic focus on AI modernization is a key area for future growth.
The backstory
In Q4 FY26, Sonata Software had reported consolidated revenue of ₹2,536.2 crore and a PAT of ₹130.5 crore. The current quarter's performance shows a strong sequential increase in revenue but a decrease in profit, primarily attributed to the forex impact.
What changes now
The declaration of an interim dividend of ₹1.25 per share provides a direct return to shareholders. The appointment of Mr. Rajsekhar Datta Roy as the new CEO effective May 09, 2026, signals a leadership transition. Investors will be looking to see how the new CEO drives the company's strategy, particularly its AI-led modernization efforts.
Risks to watch
Forex volatility remains a key watch point, as demonstrated by the ₹7.4 crore loss in Q1 FY27 impacting the bottom line. Additionally, the company is monitoring the implementation of Labour Codes, which could lead to future accounting impacts.
Peer comparison
Sonata Software operates in the IT services sector, competing with companies like Infosys, Wipro, and TCS. While specific segment performance is provided, a direct comparison of Q1 FY27 numbers with peers would require consolidated data from those companies for the same period.
Context metrics (time-bound)
- Consolidated Revenue (Q1 FY27): ₹3,279.1 crore (up sequentially from ₹2,536.2 crore in Q4 FY26).
- Consolidated PAT (Q1 FY27): ₹108.1 crore (down from ₹130.5 crore in Q4 FY26).
- Interim Dividend: ₹1.25 per share for FY27.
- AI-led Orderbook Growth: 27% QoQ.
What to track next
Investors should monitor the company's ability to convert its growing AI-led pipeline and orderbook into sustainable revenue and profit. The impact of the new CEO on strategic execution and managing forex volatility will be crucial to observe in upcoming quarters.