Sonata Software Ltd

Q2 FY26IT - Software

Sonata Software Q2 FY26 earnings call: Revenue & Margins

Q2 FY26 earnings call: what management guided on revenue, margins and order book.

Price₹304

Market cap₹9.5K Cr

P/E18.6

Updated23 Aug 2026

Read4 min read

The short version

Sonata aims to maintain a sustainable book-to-bill ratio between 1.2 to 1.3, as in the past, supporting steady revenue growth. Sonata aims for revenue acceleration through winning more deals and maintaining a book-to-bill ratio between 1.2 to 1.3, despite recent headwinds from large client ramp-downs.

From Sonata Software Ltd's Q2 FY26 earnings-call transcript · updated 23 Aug 2026.

Revenue & Sales Performance

Sonata aims to maintain a sustainable book-to-bill ratio between 1.2 to 1.3, as in the past, supporting steady revenue growth.
Large deal pipeline with 20-30 deals reflects ongoing potential for new business wins.
Challenges exist in winning new business in certain large accounts (notably in TMT and BFSI sectors), with recovery expected from Q4 FY26 or Q1 FY27.
Strong momentum in Healthcare, BFSI, and non-big tech TMT sectors drives broad-based growth.
Increasing AI integration and modernization engineering focus to drive growth, with AI order book growing from 8% to 10%.
Strategic focus on expanding Microsoft channel, partnerships with ISVs, and large system integration deals to diversify revenue sources.

2 more points management made on revenue & sales performance

Profitability & Margins

Sonata aims for revenue acceleration through winning more deals and maintaining a book-to-bill ratio between 1.2 to 1.3, despite recent headwinds from large client ramp-downs.
The EBITDA margin is expected to be in the high teens, targeting a sustainable high-teen EBITDA company level.
Operational improvements like higher utilization (87.3% in Q2 FY26), planned offshoring, and AI adoption contributed to a 70 bps sequential EBITDA improvement.
Salary increments impacted margins by 90 bps, but efficiencies and AI-driven productivity gains are expected to absorb this impact going forward.
PAT grew 10.3% quarter-on-quarter in Q2 FY26 and is expected to further accrete in H2 FY26 compared to H1.

2 more points management made on profitability & margins

See what Sonata Software Ltd said on profitability & margins — free account, 30 seconds.

Capital Expenditure Plans

The transcript from the Sonata Software Q2 FY26 earnings call does not explicitly mention any current or future capital expenditure (capex), strategic investments, or capital investments. The discussion primarily focuses on: - Business strategy and growth in verticals (Healthcare, BFSI, TMT, Retail, Manufacturing) - AI and modernization engineering initiatives - Large deal wins including AI-related contracts - Operational efficiency through utilization, offshoring, and AI adoption - Talent investments such as upskilling and AI training programs

2 more points management made on capital expenditure plans

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Fundraising & Capital Structure

There is no mention of any current or planned fundraising through debt or equity in the provided transcript of Sonata Software's Q2 FY26 earnings call.
The management focused on discussing business performance, strategic priorities, order book, verticals performance, AI implementation, and operational metrics.
There was no indication or discussion regarding raising new capital via debt or equity during the call or in the closing remarks.
The company emphasized sustainable EBITDA improvement, order book growth, and ongoing investments in talent and technology without referencing external fundraising.

See what Sonata Software Ltd said on fundraising & capital structure — free account, 30 seconds.

Order Book & Pipeline

The overall order book for Sonata Software stands at a book-to-bill ratio of 1.28.
This 1.28 ratio represents the entire business, not just net new orders.
The company's aspiration is to maintain the overall business order book between 1.2 to 1.3, consistent with past performance.
The order book has been tempered by headwinds from two large accounts (one in TMT and one in BFSI), impacting growth.
The firm remains confident about achieving and sustaining a 1.2 to 1.3 book-to-bill ratio.
The AI order book constitutes about 10% of the total order book.

2 more points management made on order book & pipeline

Sonata Software Ltd — Quarterly revenue & net profit

Revenue Net profit

Dec 2024

Mar 2025

Jun 2025

Sep 2025

Dec 2025

Mar 2026

Reported quarterly figures (₹ Cr). Latest: revenue ₹2.5K Cr, net profit ₹130 Cr. Revenue and profit are scaled separately — hover a quarter for exact figures.

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What Sonata Software's management said in earlier quarters

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Frequently Asked Questions

What were Sonata Software Ltd Q2 FY26 results?

What is Sonata Software Ltd share price analysis?

Sonata Software Ltd currently shows a neutral. The stock trades at a P/E of 18.6 with a market cap of ₹9,464 Cr. Investors should review the full earnings analysis for detailed insights.

Is Sonata Software Ltd planning capital expenditure?

The transcript from the Sonata Software Q2 FY26 earnings call does not explicitly mention any current or future capital expenditure (capex), strategic investments, or capital investments.

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.