Sonata Software Ltd Q3 FY26 Results & Concall Highlights: Revenue, Margins & Order Book
Published 4 Aug 2026 | IT - Software | Market Cap: ₹9.5K Cr
Growth expected to continue current trajectory for next 1-2 quarters despite recent client impacts. Sonata Software aims to sustain EBITDA margins in the high teens to low 20s range (18%-21%) going forward.
From Sonata Software Ltd's Q3 FY26 earnings-call transcript · updated 23 Aug 2026.
Price
₹304
Market Cap
₹9.5K Cr
P/E Ratio
18.6
How does Sonata Software Ltd rank in IT - Software?
Compare Sonata Software Ltd against every IT - Software company this quarter on revenue, margins and earnings-call signals.
Sonata Software Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹2.5K Cr, net profit ₹130 Cr.
Full financials →📊 Revenue & Sales Performance
- →Growth expected to continue current trajectory for next 1-2 quarters despite recent client impacts.
- →BFSI segment impacted by a single large client ramp-down but two large new BFSI deals won are expected to drive scalable growth from Q1 FY2027 onwards.
- →Retail segment under pressure with expected residual negative impact continuing into Q4; growth expected to resume from Q1 FY2027.
- →Domestic business projected to return to year-on-year revenue growth by Q2 FY2027 after recent large client loss.
- →Three-pillar strategy for domestic business expansion focused on SMC segment, ISVs, and large system integration deals supports future growth.
- →AI-led order booking accounts for about 14% of total order book, indicating strong growth momentum in AI-driven deals.
- →Overall company targets sustained improvement in profitability and growth, aiming for a resilient and diversified portfolio post current adjustments.
📈 Profitability & Margins
- →Sonata Software aims to sustain EBITDA margins in the high teens to low 20s range (18%-21%) going forward.
- →The company is confident of maintaining margin improvement through operational efficiency, AI-led productivity, pyramid optimization, and price increases.
- →Normalized PAT showed 6.1% quarter-on-quarter growth and 21.4% year-on-year growth in Q3 FY2026.
- →Earnings per share (EPS) for Q3 FY2026 stood at Rs.3.76.
- →Domestic business is expected to return to year-on-year growth by Q2 FY2027 after current large client impacts.
- →International business expects to continue the current growth trajectory for the next one to two quarters, with gradual recovery in BFSI vertical due to new large deals.
- →The company is optimistic about long-term value creation driven by AI adoption, operational rigor, and platformation strategies.
🏗️ Capital Expenditure Plans
- →Sonata Software continues significant investments in AI capabilities, especially in their proprietary platformation framework, with a focus on agentic AI solutions like AgentBridge.
- →They are partnering with academic institutions such as IISc in India and Wharton School in the US to further research and innovation in AI.
- →Investments have been made in proprietary tools and platforms, including Harmoni.AI and AgentBridge, to improve productivity and support modernization engineering.
- →The company is scaling talent across sales, delivery, HR, and finance to back its growth ambitions.
- →Cloud and data modernization are focus areas, with Sonata increasing its footprint in cloud consumption and AI co-sell programs, especially leveraging Microsoft's AI consumption model.
- →No explicit mention of traditional capital expenditure (capex) like infrastructure or hardware; strategic investments mainly focus on intellectual property, AI, and platform-based innovation to drive modernization engineering.
💰 Fundraising & Capital Structure
📋 Order Book & Pipeline
- →The order book for Q3 FY2026 stood at $97 million.
- →The book-to-bill ratio was 1.18x during the quarter.
- →AI-led order booking contributed to 14% of total order wins in Q3 FY2026, up from 5%-10% earlier.
- →Two large multi-year deals were added in Q3 FY2026.
- →The company has expanded strategic partnerships with Microsoft, AWS, Salesforce, and others.
- →The order book growth reflects strong momentum from large TMT and healthcare deals, and BFSI sector wins.
- →The company expects to continue the current growth trajectory for the next one or two quarters and aims to provide clearer guidance after that.
Key Metrics
Frequently Asked Questions
What were Sonata Software Ltd Q3 FY26 results?
Growth expected to continue current trajectory for next 1-2 quarters despite recent client impacts. Sonata Software aims to sustain EBITDA margins in the high teens to low 20s range (18%-21%) going forward.
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?
Sonata Software continues significant investments in AI capabilities, especially in their proprietary platformation framework, with a focus on agentic AI solutions like AgentBridge.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.