SONATSOFTW
Large CapSonata Software Limited
IT
Sonata Software is a modernization engineering firm focused on transforming enterprises for speed, efficiency, and growth. It serves mid-caps (business heads/CXOs) and large caps (CIOs) with agile solutions across TMT, BFSI, HLS, and RMD verticals, leveraging proprietary IPs like Harmoni.AI.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend argues for patience, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100Rev -3% YoY · PAT +20% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,536 Cr | -3.1% | -17.7% |
| EBITDA | ₹209 Cr | +20.8% | +4.5% |
| Operating margin | 8.0% | +100 bps | +200 bps |
| PAT | ₹130 Cr | +20.4% | +25.0% |
| PAT margin | 5.1% | +100 bps | +175 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Consolidated PAT grew 25.0% QoQ and 9.3% YoY. International Services revenue grew 0.6% QoQ (reported) and 1.1% YoY (reported), with constant currency growth of 2.0% QoQ and 27.6% YoY. International EBITDA accretion was 0.7% QoQ and 1.5% YoY.
Sonata Software demonstrated strong sequential PAT growth and robust constant currency YoY growth in International Services, driven by strategic focus on Cloud & Data, AI, and large deal wins. High utilization and improving ROCE/RONW indicate operational efficiency. The shift towards modernization and AI-led solutions aligns with market demand.
International Services Revenue by GTM (Q4 FY26)
Latest issuer-disclosed distribution across 5 reported categories.
Large Deals
2 large deals won during Q4 FY26, with 43% of active pipeline consisting of large deals.
Cloud & Data
Cloud & Data pipeline is 57%; increased as a percentage of revenue from 52% to 65% in FY26.
AI & Modernization
AI Win of $13.7M; AI led Pipeline of $335M.
Verticals & Partnerships
Focus on MS Sell to, HLS, BFSI, TMT; AWS and MS Sell with.
New Capability Center
Extended engineering team with a new capability center in India for a large deal win.
New Office Launch
New office launch reinforcing growth and delivery capacity for a large deal win.
Microsoft Partnership
30+ years of partnership, named in Inner Circle for Microsoft Business Application 2025-26, generating $650M+ per annum revenue to Microsoft.
Enterprise Agility Demand
Management's POV states the need to adapt and evolve will get faster, and enterprise agility will be key, hence demand outweighs efficiency in the mid-term.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
For IT services, both sequential (QoQ) performance indicates recent momentum and project execution, while annual (YoY) growth provides a broader view of business expansion and mitigates seasonality.
Consolidated PAT Growth
25.0% QoQ, 9.3% YoY
International Services Revenue Growth (Reported)
0.6% QoQ, 1.1% YoY
International Services Revenue Growth (Constant Currency)
2.0% QoQ, 27.6% YoY
International EBITDA Accretion
0.7% QoQ, 1.5% YoY
Modernization Focus
Sonata will drive enterprise velocity for clients through AI-led business process transformation, industry solutions, legacy modernization, platform creation, and SaaS surround.
SITL Strategy
Three-pillar strategy for Sonata Information Technology Limited (SITL): Grow Core Reselling/Platform, Expand Managed Services, and India IT Services.
Sustainability Targets
Targeting Net Zero Emission by 2050, Single Use Plastic Free certified, and 100% Tier 1 suppliers ESG compliant.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Large Deals Pipeline | 43% of active pipeline consists of large deals; 37% with Fortune 500 clients. | Conversion rate and continued growth in large deal wins. |
| Cloud & Data Revenue Mix | Increased from 52% to 65% of revenue in FY26. | Further increase in the percentage of revenue from Cloud & Data services. |
| International Services Utilization | 91.8% in Q4 FY26. | Maintenance of high utilization rates while scaling operations. |
| AI Led Pipeline | $335M. | Conversion of AI-led pipeline into revenue and new AI-related deal wins. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
44NeutralSMA20 -12.9% / mo
Technical chart
SONATSOFTWdaily · 6M-24.4%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 48.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 48 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 30% off 52W high · 27% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 4.4%.
- Piotroski is strong at 7/9.
- Fair-value margin of safety is positive at 55.9%.
Main drags
- Growth is weaker at 11/25; verify the latest quarterly trend.
- Valuation is weaker at 19/30; verify the latest quarterly trend.
- Balance sheet is weaker at 10/15; verify the latest quarterly trend.
IT valuation: PE and EV/EBITDA against growth and margins
Asset-light IT companies deserve valuation support only when growth, margins, and cash conversion hold up.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 91st percentile of the scored universe and 88th percentile within IT. No major sub-score weakness stands out.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · IT: 88th pctile, median 68 · Large: 77th pctile, median 74
144 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4.4%.
- ▸10 years of positive FCF.
- ▸ROCE is 30.6%.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 14.40
- P/B
- 3.84
- EV/EBITDA
- 9.51
- Market Cap
- 7316.00Cr
Profitability
- ROE
- 28.20%
- ROCE
- 30.60%
- ROA
- 9.11%
- Dividend Y
- 1.69%
Growth (CAGR)
- Revenue 5Y
- 20.00%
- EPS 5Y
- 16.00%
- Revenue 3Y
- 13.00%
- EPS 3Y
- 4.00%
Balance Sheet
- Debt/Equity
- 0.38
- Interest Coverage
- 14.53×
- Altman Z
- 4.61
- Book Value
- 67.90
Cash Flow
- FCF Yield
- 4.39%
- FCF Positive Y
- 10/5
- OCF
- 538.00 Cr
- EPS TTM
- 16.56
Shareholding
- Promoter Hold
- 28.17%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 22%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in IT — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.