Sonata Software shares surged nearly 10% on Friday following the company's strong Q4 FY26 results. According to reports from The Economic Times, the company reported a 21% rise in net profit to ₹130.5 crore in the fourth quarter of FY26, compared to ₹107.53 crore in the year-ago period. The positive market response came despite revenue challenges, with revenue from operations declining more than 3% to ₹2,536.19 crore in the January-March quarter of FY26, down from ₹2,617.20 crore in the corresponding quarter of FY25.
The company's consolidated EBITDA rose nearly 21% year-on-year to ₹208.7 crore during the quarter under review, as reported by The Economic Times. Sonata Software's international IT services segment recorded a 35% YoY surge in net profit to ₹84.2 crore, while the domestic products and services segment recorded a 2.5% rise in profit to ₹46.3 crore during the fourth quarter of FY26. The company's overall performance remained steady with gains in both international and domestic business segments.
For the complete FY26, Sonata Software saw its net profit rise more than 9% to ₹464.4 crore, while revenue rose over 5% to ₹10,701.2 crore from the previous year, according to The Economic Times. The company's EBITDA increased 7.5% to ₹741.3 crore during the financial year. This full-year performance demonstrates the company's consistent growth trajectory despite quarterly revenue challenges.
Sujit Mohanty, MD and CEO of Sonata Information Technology Limited, highlighted the company's strong performance in core cloud platform offerings, as reported by The Economic Times. He noted successful acquisition of new clients for cloud services and data protection solutions business areas, with realized year-on-year growth from key accounts. The company also announced a final dividend as part of its quarterly results announcement.
According to The Economic Times, Sonata Software shares have dropped 33% in three years but gained 30% in five years. The company currently has a market capitalisation of nearly ₹8,150 crore. The strong quarterly profit growth and positive market response reflect investor confidence in the company's strategic focus on cloud services and data protection solutions, despite the revenue contraction in the latest quarter.
