Sonata Software consolidated PAT (before exceptional item) grew by 6.1% QoQ and 21.4 % YoY.

PRNewswire
Bengaluru (Karnataka) [India], February 7: Sonata Software (NSE: SONATSOFTW) (BSE: 532221), a leading Modernization Engineering Company, today reported its unaudited financial results for the Quarter ended December 31, 2025.
- Consistent quarterly interim dividend of INR 1.25 per share.

^ Pursuant to the notification of the new Labour Codes by the Government of India, Sonata recognised a one-time incremental expense towards past service costs for employee benefits. Accordingly, an exceptional item of ₹31.3 crore was recorded during the quarter, comprising gratuity of ₹23.3 crore and leave encashment of ₹8.0 crore.
Commenting on the Q3 performance, Mr. Samir Dhir, MD & CEO of Sonata Software, said:
"International IT Services delivered steady progress during the quarter, with consolidated PAT improving significantly in the last two quarters. Following a 10% PAT growth in the previous quarter, we achieved a further 6.1% quarter-on-quarter growth in the current quarter. The business secured a large deal in the BFSI vertical with a Fortune 500 fintech client, reinforcing our strategy of driving growth through large deals backed by disciplined execution. Our continued strategic investments in Artificial Intelligence contributed approximately 14% of the overall order book for the quarter."
Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, added:
"We delivered a seasonally strong quarter in our domestic business. Our three-pillar strategy to diversify the business is in motion, focused on building a scaled and resilient operating model. We remain confident that this strategic direction will drive a more diversified, scalable, and future-ready business."
Financial Highlights for Q3'26:
- International IT Services:
- In USD terms, Q3'26 revenue stood at $82.3 million, growth of 0.4% QoQ and 0.3% in CC.
- In Rupee terms, Q3'26 revenue stood at ₹738.6 crores, growth of 1.1% QoQ.
- EBITDA (before other income and forex) for Q3'26 stood at 19.5%, 220bps accretion QoQ.
- PAT before exceptional item for Q3'26 stood at ₹80.4 crores, growth of 3.0% QoQ
- PAT post exceptional item for Q3'26 stood at ₹59.8 crores.
- DSO stood at 71 days in Q3'26, compared to 68 days in Q2'26.
- ROCE stood at 18.7% in Q3'26, compared to 17.8% in Q2'26.
- RONW stood at 23.1% in Q3'26, compared to 22.6% in Q2'26.
- 3 new customers were added during the quarter.

- Domestic Products & Services:
- Revenue for Q3'26 stood at ₹2,345.9 crores, growth of 68.6% QoQ.
- Gross contribution for Q3'26 stood at ₹76.1 crores, growth of 10.8% QoQ.
- EBITDA (before other income and forex) for Q3'26 stood at ₹56.2 crores, 20.9% QoQ.
- PAT before exceptional item for Q3'26 stood at ₹47.1 crores, growth of 11.6% QoQ.
- PAT post exceptional item for Q3'26 stood at ₹44.6 crores.
- DSO stood at 42 days in Q3'26, Same as compared to Q2'26.
- ROCE stood at 43.1% in Q3'26, compared to 43.8% in Q2'26.
- RONW stood at 41.8% in Q3'26, compared to 42.5% in Q2'26.
- Consolidated:
- Revenue for Q3'26 stood at ₹3,080.6 crores, growth of 45.4% QoQ.
- EBITDA (before other income and forex) for Q3'26 stood at ₹200.2 crores, growth of 15.9% QoQ.
- PAT before exceptional item for Q3'26 stood at ₹127.5 crores, growth of 6.1% QoQ and 21.4% YoY.
- PAT post exceptional item for Q3'26 stood at ₹104.4 crores.
- Cash and cash equivalents (gross) stood at INR 564 Crores.
- Cash and cash equivalents (net) stood at negative ₹ 12 Crores.
- ROCE stood at 23.3% in Q3'26, compared to 22.1% in Q2'26.
- RONW stood at 27.7% in Q3'26, compared to 27.1% in Q2'26.
- The Company has declared its third interim dividend for the financial year at ₹1.25 per share. This is in line with the commitment made during the Q1'26 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-first 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/
Logo: https://mma.prnewswire.com/media/2681656/5338813/Sonata_Software_logo.jpg
(ADVERTORIAL DISCLAIMER: The above press release has been provided by PRNewswire. ANI will not be responsible in any way for the content of the same)