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Sonata Software
SectorInformation Technology
Sonata Software Limited is a modernization engineering company incorporated in 1994. It provides Information Technology Services and Solutions to customers globally, including cloud modernization, enterprise data modernization, and application and infrastructure re-platforming services. The company uses its proprietary Platformation approach and offers solutions combining AI, machine learning, and NLP techniques. Sonata has partnerships with major technology companies and has acquired several businesses to expand its capabilities. The company has development centers in various locations worldwide and has received certifications and awards for its services. Sonata Software Limited also operates through multiple subsidiaries and has made strategic investments in other technology companies.
In the news
Sonata Software appoints Hariprasad Rebala as Chief AI Officer
Sonata Software Q1 profit drops 1% to ₹108.11 crore under new CEO
Sonata Software shares surge 18% on strong Q3 results, NCLT approval
Sonata Software shares surge 10% on 21% Q4 profit jump
Sonata Software Q4 PAT jumps 25% to ₹130.5 cr, shares surge 9%
Sonata Software Q4 profit jumps 25% QoQ despite revenue dip
Sonata Software Q3 profit drops 13.3% despite 45.4% revenue jump
The Quarter story
The two most recent quarterly results, compared side-by-side.
Sonata Software accelerates cloud and AI adoption while shifting to recurring revenue, though post-holiday earnings compression and pipeline normalization require monitoring.
AI & Modernization pipeline grows from $46M to $340M from Q1 FY26 to Q1 FY27 — strong demand for next-gen tech services
EBITDA after forex & other income falls from ₹607.7 Cr to ₹14.7 Cr from Q4 FY26 to Q1 FY27 — post-holiday earnings face sharp compression
Cloud share of GTM revenue rises from 39% to 62% from Q1 FY26 to Q1 FY27 — accelerating cloud transformation focus
Large deals pipeline share drops from 43% to 16% from Q4 FY26 to Q1 FY27 — deal conversion needs closer monitoring
Domestic annuity revenue mix jumps from 12% to 80% from Q1 FY26 to Q1 FY27 — building a stable recurring income base
Attrition rate rises from 11% to 13% from Q3 FY26 to Q1 FY27 — talent retention requires attention
DSO improves from 71 days to 60 days from Q3 FY26 to Q1 FY27 — faster cash collections strengthen liquidity
Net working capital to gross contribution ratio climbs from 0.45x to 0.87x from Q2 FY26 to Q1 FY27 — working capital efficiency tightens
Top 10 client revenue concentration falls from 56% to 51% from Q1 FY26 to Q1 FY27 — reducing dependency on a few large accounts
Data segment share of GTM revenue declines from 24% to 11% from Q1 FY26 to Q1 FY27 — data services lose momentum
Company insights, generated from the most recent coverage.
Book-to-bill of 1.18x in Q1 FY27 points to a deal pipeline exceeding quarterly revenue, a leading indicator that could support a top-line turnaround if conversions hold.
Stock fell ~5% to ₹260 on Sep 29 2026 on sharply elevated volumes (2.51mn shares vs negligible average), making it the top loser among listed IT stocks — sign of genuine institutional selling, not just sector beta.
Structural downtrend intact: -14.6% over 1 month, -27.3% over 1 year and -58.7% over 2 years, leaving shares ~35% below the ₹400.50 52-week high — persistent erosion of investor confidence.