According to latest reports, Sonata Software delivered mixed Q1 FY27 results with consolidated net profit of ₹108.11 crore, marginally lower than ₹109.34 crore in the corresponding quarter last year. Despite the profit decline, the IT services company demonstrated strong revenue momentum with total consolidated income rising 10.6% year-on-year to ₹3,285.87 crore from ₹2,965.18 crore in Q1 FY26. This performance reflects healthy business momentum despite challenging demand conditions in the global IT services industry, marking the first quarterly result under newly appointed CEO Rajsekhar Datta Roy who took charge on May 9, 2026.
The company's International IT Services revenue grew 11% YoY to ₹777.2 crore, while Domestic Products & Services segment expanded 10.2% YoY to ₹2,505.6 crore. In USD terms, the international business generated $82.0 crore with 0.2% YoY growth, and in constant currency terms, it achieved 2.1% YoY growth. The domestic segment's gross contribution stood at ₹78.5 crore with 14.5% YoY growth, demonstrating strong performance across both business verticals. The company added 7 new customers during the quarter, indicating successful market expansion and client acquisition strategies.
As reported by multiple sources, the company's EBIT margin contracted to 4.3% from 5.2% a year earlier, indicating that operating profitability weakened despite higher sales volumes. The EBIT declined to ₹142.3 crore during the quarter, suggesting that additional business generated did not fully translate into stronger earnings. This margin compression occurred despite the company crossing the ₹3,200-crore quarterly revenue mark, reflecting the larger scale achieved through organic growth and acquisitions. The standalone net profit for the June 2026 quarter was recorded at ₹41.14 crore, showing the impact of margin pressures across both consolidated and standalone operations.
In May 2026, Mr. Samir Dhir stepped down as Managing Director and CEO, succeeded by Mr. Rajsekhar Datta Roy for a three-year term effective May 9, 2026. The leadership transition continues smoothly with focus on scaling global delivery and AI modernization practices. As per latest reports, the company's strategic alignment with global cloud ecosystems and AI-first orientation supports its resilient top-line trend despite macroeconomic headwinds. The company maintains strong AI-led deal momentum and cloud revenue mix, with management emphasizing the ramp-up of new AI-led modernization deals and growth in international IT services segments.
According to multiple reports, the board approved an interim dividend of ₹1.25 per equity share for FY27, with the record date fixed as August 14, 2026, while the dividend will be paid on or after August 24, 2026 through electronic mode. Additionally, shareholders at the 31st AGM held on July 31, 2026, approved the company's FY26 financial statements and a final dividend of ₹4.15 per share. The consistent dividend distribution highlights management's confidence in liquidity and long-term cash generation, with the company maintaining its commitment to shareholder returns despite operational challenges.
