Sonata Software Consolidated PAT grew by 10% QoQ, Declares second interim dividend of ₹1.25 per share

MUMBAI, India, Nov. 13, 2025 /PRNewswire/ -- Sonata Software (NSE: SONATSOFTW) (BSE: 532221), a leading Modernization Engineering Company, today reported its unaudited financial results for the Quarter and half year ended September 30, 2025.

Commenting on the Q2 performance, Mr. Samir Dhir, MD & CEO of Sonata Software, said:
"International IT Services reported steady progress during the quarter, consolidated PAT improving by 10% quarter-on-quarter. The business secured a large deal in the healthcare vertical with a leading provider, reaffirming our focus on driving growth through large deals and consistent execution. Our continued strategic investments in Artificial Intelligence are delivering results, with AI-led orders accounting for approximately 10% of the overall order book for the quarter. As clients accelerate AI-enabled modernization to enhance competitiveness, we remain confident in the company's long-term growth trajectory."

Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, added:
"We continue to execute on our three-pillar strategy focused on driving growth in the Microsoft SMC sector, expanding our AI-led partnerships with ISVs, and securing large system integration deals. During the quarter, we added new clients across all three pillars, with particularly strong traction in the Microsoft SMC segment. Despite prevailing industry headwinds in certain sectors, our disciplined execution and focused investments continue to position us well for sustained growth."

Financial Highlights for Q2'26: 

•  International IT Services: 

• In USD terms, Q2'26 revenue stood at $82.0 million, growth of 0.2% QoQ and 1% in CC.
• In Rupee terms, Q2'26 revenue stood at ₹730.3 crores, growth of 4.3% QoQ.
• EBITDA (before other income and forex) for Q2'26 stood at 17.3%, 70bps accretion QoQ.
• PAT for Q2'26 stood at ₹78.0 crores, growth of 10.3% QoQ
• DSO stood at 68 days in Q2'26, compared to 62 days in Q1'26.
• ROCE stood at 17.8% in Q2'26, compared to 14.7% in Q1'26.
• RONW stood at 22.6% in Q2'26, compared to 20.9% in Q1'26.
• 6 new customers were added during the quarter.

•  Domestic Products & Services: 

• Revenue for Q2'26 stood at ₹1391.3 crores, decline of 38.8% QoQ.
• Gross contribution for Q2'26 stood at ₹68.7 crores, growth of 0.3% QoQ.
• EBITDA (before other income and forex) for Q2'26 stood at 3.3%, 140bps accretion QoQ.
• PAT for Q2'26 stood at ₹42.2 crores, growth of 9.3% QoQ.
• DSO stood at 42 days in Q2'26, compared to 63 days in Q1'26.
• ROCE stood at 43.8% in Q2'26, compared to 33.6% in Q1'26.
• RONW stood at 42.5% in Q2'26, compared to 32.5% in Q1'26.

•  Consolidated: 

• Revenue for Q2'26 stood at ₹2,119.3 crores, decline of 28.5% QoQ.
• EBITDA (before other income and forex) for Q2'26 stood at 8.1%, 280bps accretion QoQ.
• PAT for Q2'26 stood at ₹120.2 crores, growth of 10.0% QoQ.
• Cash and cash equivalents (gross) stood at INR 323 Crores.
• Cash and cash equivalents (net) stood at negative ₹ 280 Crores.
• ROCE stood at 22.1% in Q2'26, compared to 18.5% in Q1'26.
• RONW stood at 27.1% in Q2'26, compared to 24.0% in Q1'26.
• The Company has declared its second interim dividend for the financial year at ₹1.25 per share. This is in line with the commitment made during the previous earnings call to implement a quarterly interim dividend payout policy starting this year.

About Sonata Software Limited

In today's market, there is a unique duality in technology adoption. On one side, extreme focus on cost containment by clients, and on the other, deep motivation to modernize their Digital storefronts to attract more consumers and B2B customers.

Sonata Software, with $1 Billion Revenue, is the leading AI-led Modernization Engineering company. Our unique Modernization approach through Platformation.AI helps create Efficient and Agile digital businesses to drive intelligent ecosystems of the future. Our bouquet of Modernization Engineering Services cuts across Data, Cloud, Dynamics, Automation, Cyber Security, and around newer technologies like Generative AI, Microsoft Fabric, and other modernization platforms.

Our unique and innovative Responsible-first AI offering Sonata Harmoni.AI is a comprehensive platform powered by GenAI and encompasses a variety of industry solutions, service delivery platforms, and accelerators. It is distinguished by its embedded ethics, privacy, security, and compliance. We enable our clients to leverage AI in three different ways: i) driving efficiencies, ii) driving higher consumer experience/modern sales, and iii) driving innovative business models. We have launched bleeding edge Agentic AI offering – AgentBridge – that enables enterprises to usher in the era of intelligent, scalable AI-driven operations.

Headquartered in Bengaluru, India, Sonata Software has a strong global presence, including key regions North America, UK, Europe, APAC, and ANZ. We are one of the fastest growing IT Services companies and a trusted partner of Fortune 500 companies in Banking, Financial Services and Insurance (BFSI); Healthcare and Lifesciences (HLS); Telecom, Media, and Technology (TMT); and Retail, Manufacturing and Distribution (RMD) space.

Sonata Software boasts of a very strong partnership with Microsoft, AWS and many others. We are proud member of Microsoft AI Partner Council and have also achieved AWS Generative AI Competency. Also, we are member of the prestigious Inner Circle for Microsoft Business Applications and Featured and Launch Partner for Microsoft Fabric.

About Sonata Information Technology Limited

Sonata Information Technology Limited, our Domestic Business, partners with Indian enterprise customers in their digital transformation journeys. As a digital transformation partner, it helps enterprises adopt and scale cloud solutions, fostering innovation and growth. It also helps customers in managing & maintaining their Hybrid Cloud Platforms and related enterprise IT security environments.

For more information, please visit https://www.sonata-software.com/

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