Sonata Software (SONATSOFTW) Q1 26/27 earnings summary

Executive summary

• Completed leadership transition, including appointment of a new CEO, and reinforced business momentum with focused execution.

• Accelerated transformation to an AI-native, engineering-led organization, embedding AI across offerings and operations.

• Launched enterprise-grade agentic AI platform, Workbench, and appointed a Chief AI Officer.

• Achieved consolidated revenue of ₹3,279.1 Cr in Q1 FY27, up 10.6% YoY, with strong growth in both international and domestic segments.

• Interim dividend of ₹1.25 per share (125% of par value) declared.

Financial highlights

• International business revenue at $82M (₹777.2 Cr), up 11% YoY; domestic revenue at ₹2,505.6 Cr, up 10.2% YoY.

• Consolidated EBITDA at ₹179.0 Cr, up 12.1% YoY, with margin at 5.5%; PAT at ₹108.1 Cr, down 17.1% QoQ.

• International EBITDA margin at 13.4%-15.4%, domestic EBITDA up 34.9% YoY.

• Cash and equivalents at ₹567.0 Cr; net positive cash at ₹67.0 Cr.

• EPS at ₹3.90 per share.

Outlook and guidance

• Expect gradual improvement in revenue and EBITDA over the medium-to-long term, driven by AI-led strategy.

• Margin recovery anticipated as one-time impacts normalize and AI investments yield returns.

• Large deal pipeline remains healthy, with 37% of pipeline comprising large deals and 28% with Fortune 500 clients.

• AI-led pipeline improved by 21% and orderbook increased by 27% QoQ.

• Domestic business expected to sustain double-digit growth trajectory.