Sonata Software LimitedQ1 FY27 Results & Financial Update

Sonata Software Limited: Q1 FY27 consolidated results and company financials – revenue ₹3,279.10 Cr, PAT ₹108.11 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.

NSE: SONATSOFTWPublished 19 Oct 2026Updated 19 Oct 2026~6 min read
Quarter at a glanceCurrent reported figures.Change figures appear when a comparable reported period is available.
Revenue from operations₹3,279.10 CrReported Q1 FY27
Profit after tax₹108.11 CrReported Q1 FY27
EPS₹3.91Reported Q1 FY27

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Quarterly Results AnalysisExplore Sonata Software Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.

Quarter overview

Quarterly earnings analysis

01

For the first quarter of fiscal year 2027 (Q1 FY27) ended June 30, 2026, Sonata Software reported consolidated revenue from operations of ₹3,279.1 crores, marking a 10.6% increase compared to the corresponding period of the previous year.

02

Consolidated EBITDA (before other income, forex, and exceptional items) stood at ₹179.0 crores for the quarter, representing a 12.1% growth year-on-year, supported by balanced contributions from both the International IT Services and Domestic Products & Services divisions.

03

Profit after tax (PAT) for the quarter was ₹108.11 crores, which includes a foreign exchange loss of ₹7.4 crores, compared to ₹130.5 crores in the preceding quarter (Q4 FY26) which had included a forex gain of ₹28 crores.

04

The International IT Services division generated revenue of ₹777.2 crores in INR terms, achieving an 11% year-on-year increase (0.2% in USD terms and 2.1% in constant currency terms), with an EBITDA of ₹119.6 crores and 7 new customer additions during the period.

05

The Domestic Products & Services segment achieved revenue of ₹2,505.6 crores, up 10.2% year-on-year, with gross contributions expanding by 14.5% to ₹78.5 crores and segment EBITDA rising 34.9% to ₹59.3 crores.

06

Management highlighted foundational steps taken during the quarter toward AI-led growth across offerings, go-to-market strategies, partnerships, delivery models, and talent development, resulting in a 21% improvement in the AI-led pipeline and a 27% quarter-on-quarter increase in AI-led order books.

07

The Board of Directors declared an interim dividend of ₹1.25 per equity share (125% on a par value of Re. 1/-) for the financial year 2026-27, with the record date set for August 14, 2026.

01 · Business model

What does Sonata Software do?

Sonata Software Limited is an AI-first modernization engineering company that operates through its proprietary Platformation framework, helping enterprises transition from traditional systems-based operations to intelligent business platforms.

The company's offerings span cloud, data, artificial intelligence, Microsoft Dynamics, test automation, and managed services, enabled by proprietary tools such as Harmoni.AI, AgentBridge, and modular reusable agent ecosystems.

Sonata maintains a strong global footprint across the United States, United Kingdom, India, Malaysia, Mexico, Australia, DACH, and the Nordics, serving Fortune 500 enterprises in sectors including banking, financial services, insurance, healthcare, life sciences, telecom, media, technology, retail, manufacturing, and distribution.

The domestic business operates primarily through subsidiary Sonata Information Technology Limited, partnering with Indian enterprise customers on digital transformation, hybrid cloud adoption, platform management, and enterprise IT security.

02 · Historical context

What shaped the business before this quarter

Business evolution

Previously, the company expanded its global delivery and technology footprint through international acquisitions, including Quant Systems Inc. (now Sonata Software Solutions North America Inc.) and Scalable Data Systems Pty Ltd in Australia.

Recent trajectory

In prior periods, the company established strategic partnerships with major technology vendors such as Microsoft, AWS, Salesforce, and Snowflake, achieving elite Inner Circle status with Microsoft and Premier Tier status in the AWS Partner Network.

03 · Financial snapshot

Current-quarter financial snapshot

MetricQ1 FY27
Revenue from operations₹3,279.10 Cr
Total income₹3,285.87 Cr
Profit before tax₹137.09 Cr
Profit after tax₹108.11 Cr
EPS₹3.91

Financial interpretation

What the reported numbers mean

Profit conversion

Profit after tax represented 3.3% of reported quarterly operating revenue. This is a calculated net-profit-to-sales ratio, not a company-reported operating margin. It measures the outcome after expenses and tax; it does not, by itself, establish how margins changed versus another period.

Pre-tax earnings

Profit before tax was equivalent to 4.2% of quarterly operating revenue. The distinction between pre-tax and post-tax profit matters when interpreting earnings; neither ratio identifies an underlying cost driver without a properly matched comparative period.

Operating revenue versus total income

Total income exceeded operating revenue by ₹6.77 crore. This is the disclosed difference between the two lines, not incremental sales. The distinction matters when assessing how much of the quarter’s reported income came from the operating top line.

Ratios above are calculated from the reported quarterly figures. They are analytical descriptions, not company-reported margin guidance or an investment recommendation.

04 · Why it moved

Why the quarter looked the way it did

What drove revenue

International IT Services Growth

International IT Services revenue reached ₹777.2 crores for Q1 FY27, reflecting an 11.0% growth year-on-year in INR terms (2.1% in constant currency terms).

Domestic Products and Services Expansion

Domestic business revenue grew by 10.2% year-on-year to ₹2,505.6 crores, driven by cloud adoption mandates and client contract renewals with enhanced values.

What drove margins

Gross Contribution in Domestic Business

Domestic gross contribution expanded by 14.5% year-on-year to ₹78.5 crores, aided by a strategic focus on high-value cloud services and hybrid platform maintenance.

Foreign Exchange Impact

Consolidated profitability for Q1 FY27 was impacted by a net foreign exchange loss of ₹7.4 crores, contrasting with significant forex gains recorded in preceding quarters.

05 · Demand, customers & order book

Where demand is coming from

AI-Led Order Book Momentum

Management noted that the AI-led pipeline improved by 21% and AI-led order books increased by 27% quarter-on-quarter, driven by enterprise adoption of Harmoni.AI and AgentBridge.

New Client Additions

The International IT Services division added 7 new customers during the quarter, while the domestic business renewed multiple existing contracts with enhanced values.

06 · Segments, products & geography

Which parts of the business are doing the work

Segments and products

International IT Services Segment

Reported revenues of ₹777.2 crores and EBITDA of ₹119.6 crores; Days Sales Outstanding (DSO) improved to 60 days compared to 62 days in Q1 FY26.

Domestic Products & Services Segment

Reported revenues of ₹2,505.6 crores and EBITDA of ₹59.3 crores; Days Sales Outstanding (DSO) stood at 65 days compared to 63 days in Q1 FY26.

Geography and market mix

Geographic Revenue Breakdown

India-based segment revenue reached ₹2,242.59 crores (gross), while Other than India segment revenue contributed ₹1,039.58 crores (gross) for the quarter ended June 30, 2026.

07 · Strategy & new businesses

How the company is trying to change its growth mix

Platformation and AI Integration

The company advanced its AI-first modernization engineering strategy with 90% of its workforce AI-trained, deploying proprietary platforms like Harmoni.AI, AgentBridge, and agentic workflow toolkits.

08 · Reported developments

What changed operationally

Strong Revenue Growth

Consolidated revenue expanded by 10.6% year-on-year to ₹3,279.1 crores, accompanied by a 12.1% increase in consolidated EBITDA.

Interim Dividend Declaration

The Board declared an interim dividend of ₹1.25 per equity share (125%) for the financial year 2026-27.

09 · Cash flow & balance sheet

Profit is one thing. Cash and funding tell another part of the story.

Cash and Cash Equivalents

Gross cash and cash equivalents stood at ₹567.0 crores, while net cash and cash equivalents stood at ₹67.0 crores as of June 30, 2026.

10 · Beyond the numbers

What changed beyond the numbers

Reported update

Leadership Transition

Following the expiration of Mr. Samir Dhir's term as Executive Director on May 8, 2026, Mr. Rajsekhar Datta Roy assumed the role of Chief Executive Officer effective May 9, 2026.

11 · Key Q&A

The quarter, answered directly

What does Sonata Software do?

Sonata Software Limited is an AI-first modernization engineering company that operates through its proprietary Platformation framework, helping enterprises transition from traditional systems-based operations to intelligent business platforms.

What is the clearest takeaway from Q1 FY27?

For the first quarter of fiscal year 2027 (Q1 FY27) ended June 30, 2026, Sonata Software reported consolidated revenue from operations of ₹3,279.1 crores, marking a 10.6% increase compared to the corresponding period of the previous year.

What drove revenue or demand?

International IT Services revenue reached ₹777.2 crores for Q1 FY27, reflecting an 11.0% growth year-on-year in INR terms (2.1% in constant currency terms).

What mattered most for margins or profitability?

Domestic gross contribution expanded by 14.5% year-on-year to ₹78.5 crores, aided by a strategic focus on high-value cloud services and hybrid platform maintenance.

What changed operationally beyond the headline numbers?

The company advanced its AI-first modernization engineering strategy with 90% of its workforce AI-trained, deploying proprietary platforms like Harmoni.AI, AgentBridge, and agentic workflow toolkits.

What should the next disclosure help confirm?

Payment of the declared interim dividend of ₹1.25 per share to eligible shareholders on or after August 24, 2026, following the August 14, 2026 record date.

12 · Scenario calculator

Earnings sensitivity: what if growth and margins change?

Starting point

Build your own next-quarter scenario

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Example: enter 10 for 10% revenue growth. Enter -100 for a 1 percentage-point margin decline.

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The calculator holds the selected margin basis constant except for the basis-point adjustment you enter. It does not estimate tax, finance cost, dilution, working capital, valuation or share price.

13 · Next filing checkpoints

What the next disclosure can confirm or change

  1. 01

    Dividend Payment Date: Payment of the declared interim dividend of ₹1.25 per share to eligible shareholders on or after August 24, 2026, following the August 14, 2026 record date.

  2. 02

    AI-Led Execution: Conversion of the expanded 21% AI-led pipeline and 27% quarter-on-quarter growth in AI-led order books into recognized revenue streams.

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