What was Sonata Software's revenue growth in Q3 FY26?

Sonata Software's revenue grew by 45.4% quarter-on-quarter, reaching Rs 3,081 crore in Q3 FY26.

Why did Sonata Software's net profit decrease in Q3 FY26?

Sonata Software's net profit fell by 13.1% in Q3 FY26 due to an incremental expense of Rs 31.3 crore for past service costs related to new labor codes.

How is AI contributing to Sonata Software's business?

AI-led modernization is significantly contributing to Sonata Software's growth, accounting for approximately 14% of the total order book in Q3 FY26.

Home / Business and Economy / Sonata Software: Revenue Soars 45%, Profit Dips Amidst Deal Wins

Sonata Software: Revenue Soars 45%, Profit Dips Amidst Deal Wins

7 Feb

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Summary

Revenue surged 45.4% QoQ to Rs 3,081 crore, driven by large BFSI deals.
Net profit declined 13.1% QoQ to Rs 104 crore due to past service cost expenses.
AI-led modernization contributed significantly to the order book growth.

Sonata Software: Revenue Soars 45%, Profit Dips Amidst Deal Wins

Sonata Software has announced robust financial results for Q3 FY26, with revenues climbing by 45.4% to Rs 3,081 crore compared to the previous quarter. This significant growth was primarily fueled by substantial deal wins within the Banking, Financial Services, and Insurance (BFSI) sector, including a large contract with a Fortune 500 fintech client. The company also highlighted the growing importance of artificial intelligence in its business, with AI-led modernization contributing approximately 14% to the quarter's overall order book.

Despite the impressive revenue surge, Sonata Software's net profit experienced a sequential decrease of 13.1%, settling at Rs 104 crore. This reduction is attributed to an incremental expense of Rs 31.3 crore recognized for past service costs, necessitated by the implementation of new labor codes. The company's EBITDA saw a moderate increase of 15.9% to Rs 200 crore, though the EBITDA margin contracted to 6.5% from 8.1% in the prior quarter.