Sonata Software Q1 FY27 Share Price & Earnings Call Analysis
- Market cap
- ₹6,446 Cr
- P/E
- 12.74
- ROE
- 28.25%
- PEG
- 3.12
- Price to sales
- 0.58
- Debt to equity
- 0.38
- 52W high / low
- ₹393 / ₹210
- Sales growth (5Y)
- 20.41%
- EBITDA margin
- 6.83%
- Net profit margin
- 4.76%
- Promoter holding
- 28.17%
- Sales (last year)
- ₹11,015 Cr
Sonata Software Ltd is primarily engaged in the business of providing Information Technology (IT) Services and Solutions to its various customers in the United States of America, Europe, Middle East, Australia and India.[1]
Guidance scorecard · Q1 FY27 call
What Sonata Software Ltd's management guided
and where it ranks in IT - Software
RevenueQ1 FY27 call
10–20%- Company is optimistic about gradual improvement in revenue and EBITDA over the medium-to-long term.
- AI-led pipeline growth and increasing AI order bookings are expected to drive new opportunities internally and externally.
- Expansion into AI-native engineering-led services and embedding AI across offerings and operations are key growth drivers.
- Growth expected from moving existing clients into higher revenue buckets (e.g., $3M to $5M and above).
- New client additions anticipated in lower revenue buckets driven by AI-related deals.
- International business margins are expected to improve positively after one-time impacts normalize.
- Domestic business shows confidence in sustaining double-digit gross contribution growth year-on-year.
2 more points from Sonata Software Ltd's call on revenue
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MarginsQ1 FY27 call
Up 0–2%See what Sonata Software Ltd said on margins — free account, 30 seconds.
CapexQ1 FY27 call
- Continued investments in AI advisory and capability building, including FDE (feature development environment), to prepare for new go-to-market strategies; these investments are expected to continue for a couple more quarters.
- Expansion of managed services and IT security capabilities aligned with OEM partners and hyperscalers.
- Broadening partnerships, including deepening the Microsoft partnership (Copilot Depth program) and other hyperscalers.
2 more points from Sonata Software Ltd's call on capex
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FundraisingQ1 FY27 call
See what Sonata Software Ltd said on fundraising — free account, 30 seconds.
Order bookQ1 FY27 call
Rising- As of Q1 FY2027, Sonata Software's order book stood at USD 97.4 million.
- The book-to-bill ratio improved to 1.18x from 1.16x in Q4 FY2026.
- The AI order book grew to USD 21.4 million in Q1 FY2027 from USD 16.9 million in Q4 FY2026.
2 more points from Sonata Software Ltd's call on the order book
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Ranges are what management guided for revenue growth and margins on the latest earnings call. Not investment advice, and not a forecast of returns.
Potential multibaggers · Q2 FY27
Potential multibaggers in IT - Software
on management's own guidance
- Strong growth2
- Strong growth1
- CapitalNumbersGood growth3
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Ranks describe management commentary on revenue and margin from the latest earnings call. Not investment advice.
Peers
IT - Software companies ranked on guidance
| # | Company | Revenue guided | Margin guided | Market cap | P/E |
|---|---|---|---|---|---|
| 1 | 40%+ | Up 2%+ | ₹569 Cr | 34.7 | |
| 2 | 40%+ | Flat | ₹336 Cr | 7.3 | |
| 3 | CapitalNumbers | 20–40% | Up 2%+ | ₹181 Cr | 9.2 |
| 4 | 20–40% | Up 2%+ | ₹159 Cr | 11.5 | |
| 5 | 20–40% | Up 0–2% | ₹1,826 Cr | 28.5 | |
| 6 | 20–40% | Flat | ₹4,341 Cr | 84.7 |
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Pro shows every company guiding 40%+ revenue growth →Full IT - Software rankingFinancials of Sonata Software Ltd
Quarterly Results, Profit & Loss, Balance Sheet, Cash Flows, and Ratios are shown below as separate sections.
Financials of Sonata Software Ltd
Quarterly Results
Quarter-by-quarter operating performance
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 1,914 | 2,016 | 1,913 | 2,493 | 2,192 | 2,527 | 2,170 | 2,843 | 2,617 | 2,965 | 2,119 | 3,081 | 2,536 |
| Expenses + | 1,762 | 1,837 | 1,715 | 2,286 | 2,047 | 2,351 | 1,993 | 2,679 | 2,445 | 2,806 | 1,947 | 2,880 | 2,328 |
| Operating Profit | 152 | 178 | 197 | 208 | 144 | 176 | 177 | 164 | 173 | 160 | 173 | 200 | 209 |
| OPM % | 8% | 9% | 10% | 8% | 7% | 7% | 8% | 6% | 7% | 5% | 8% | 6% | 8% |
| Other Income + | 25 | 28 | 23 | -155 | 55 | 19 | 19 | 21 | 11 | 24 | 31 | -20 | 6 |
| Interest | 7 | 21 | 21 | 22 | 22 | 20 | 19 | 16 | 10 | 5 | 14 | 13 | 19 |
| Depreciation | 19 | 31 | 33 | 34 | 34 | 33 | 33 | 32 | 23 | 26 | 26 | 27 | 25 |
| Profit before tax | 150 | 154 | 167 | -3 | 144 | 142 | 144 | 137 | 151 | 153 | 164 | 141 | 170 |
| Tax % | 24% | 22% | 25% | 1,389% | 23% | 25% | 26% | 23% | 29% | 28% | 27% | 26% | 23% |
| Net Profit + | 114 | 120 | 124 | -46 | 110 | 106 | 106 | 105 | 108 | 109 | 120 | 104 | 130 |
| EPS in Rs | 4.06 | 4.28 | 4.43 | -1.65 | 3.94 | 3.77 | 3.80 | 3.74 | 3.83 | 3.90 | 4.29 | 3.72 | 4.65 |
Financials of Sonata Software Ltd
Profit & Loss
Annual income statement trend
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 1,682 | 1,940 | 2,371 | 2,454 | 2,961 | 3,743 | 4,228 | 5,553 | 7,449 | 8,613 | 10,157 | 10,701 |
| Expenses + | 1,514 | 1,749 | 2,191 | 2,223 | 2,625 | 3,370 | 3,848 | 5,090 | 6,845 | 7,885 | 9,468 | 9,960 |
| Operating Profit | 168 | 192 | 180 | 231 | 336 | 373 | 380 | 464 | 604 | 728 | 690 | 741 |
| OPM % | 10% | 10% | 8% | 9% | 11% | 10% | 9% | 8% | 8% | 8% | 7% | 7% |
| Other Income + | 23 | 47 | 67 | 47 | 30 | 58 | 28 | 102 | 71 | -50 | 71 | 42 |
| Interest | 3 | 8 | 9 | 5 | 3 | 15 | 15 | 18 | 19 | 85 | 65 | 51 |
| Depreciation | 6 | 6 | 11 | 12 | 13 | 37 | 40 | 47 | 59 | 132 | 121 | 104 |
| Profit before tax | 182 | 225 | 226 | 260 | 349 | 379 | 352 | 500 | 597 | 461 | 574 | 627 |
| Tax % | 27% | 30% | 31% | 26% | 29% | 27% | 31% | 25% | 24% | 33% | 26% | 26% |
| Net Profit + | 133 | 159 | 157 | 192 | 249 | 277 | 244 | 376 | 452 | 308 | 425 | 464 |
| EPS in Rs | 4.77 | 5.66 | 5.57 | 6.87 | 8.89 | 9.88 | 8.70 | 13.42 | 16.12 | 11.00 | 15.14 | 16.56 |
| Dividend Payout % | 55% | 60% | 60% | 57% | 53% | 76% | 60% | 58% | 48% | 103% | 29% | 25% |
Financials of Sonata Software Ltd
Balance Sheet
Capital structure and asset base
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 11 | 11 | 10 | 10 | 10 | 10 | 10 | 10 | 14 | 28 | 28 | 28 |
| Reserves | 418 | 460 | 580 | 643 | 758 | 659 | 895 | 1,089 | 1,287 | 1,379 | 1,678 | 1,877 |
| Borrowings + | 24 | 176 | 55 | 34 | 16 | 86 | 185 | 159 | 590 | 765 | 516 | 723 |
| Other Liabilities + | 355 | 345 | 552 | 545 | 744 | 861 | 856 | 1,301 | 2,466 | 2,889 | 2,448 | 2,464 |
| Total Liabilities | 808 | 992 | 1,198 | 1,232 | 1,528 | 1,616 | 1,947 | 2,559 | 4,357 | 5,061 | 4,670 | 5,091 |
| Fixed Assets + | 23 | 120 | 118 | 114 | 199 | 298 | 324 | 427 | 1,732 | 1,671 | 1,603 | 1,898 |
| CWIP | 0 | 0 | 0 | 0 | 1 | 0 | 0 | 0 | 1 | 0 | 26 | 0 |
| Investments | 64 | 52 | 128 | 198 | 146 | 14 | 76 | 159 | 220 | 245 | 249 | 186 |
| Other Assets + | 721 | 820 | 951 | 920 | 1,182 | 1,305 | 1,547 | 1,974 | 2,404 | 3,145 | 2,792 | 3,007 |
| Total Assets | 808 | 992 | 1,198 | 1,232 | 1,528 | 1,616 | 1,947 | 2,559 | 4,357 | 5,061 | 4,670 | 5,091 |
Financials of Sonata Software Ltd
Cash Flows
Operating, investing and financing cash movement
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash from Operating Activity + | 77 | 158 | 185 | 290 | -6 | 369 | 443 | 450 | 268 | 281 | 644 | 538 |
| Cash from Investing Activity + | -126 | -133 | -3 | 104 | 12 | 139 | -112 | -87 | -771 | -53 | -437 | -217 |
| Cash from Financing Activity + | -51 | -30 | -173 | -140 | -166 | -310 | -62 | -271 | 187 | -108 | -433 | -266 |
| Net Cash Flow | -100 | -4 | 9 | 253 | -160 | 198 | 268 | 93 | -316 | 119 | -226 | 54 |
| Free Cash Flow | 71 | 144 | 185 | 283 | -14 | 360 | 441 | 441 | 227 | 281 | 577 | 425 |
| CFO/OP | 62% | 101% | 139% | 149% | 24% | 133% | 152% | 131% | 73% | 75% | 117% | 95% |
Financials of Sonata Software Ltd
Ratios
Working capital efficiency and return ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 67 | 67 | 80 | 59 | 100 | 68 | 53 | 61 | 61 | 68 | 63 | 63 |
| Inventory Days | 3 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 6 | 2 | 2 |
| Days Payable | 90 | 84 | 96 | 87 | 89 | 80 | 84 | |||||
| Cash Conversion Cycle | -20 | -14 | 80 | 59 | 100 | 68 | 53 | -35 | -24 | -15 | -15 | -19 |
| Working Capital Days | 9 | -1 | 8 | -11 | 24 | -4 | -18 | -17 | -34 | -47 | -21 | -10 |
| ROCE % | 44% | 42% | 35% | 39% | 46% | 51% | 39% | 44% | 39% | 36% | 29% | 31% |
Guidance history
How Sonata Software Ltd's guidance has moved, call by call
| Call | Revenue | Margins | Capex | Fundraising | Order book |
|---|---|---|---|---|---|
| Q1 FY27 call → | 10–20% | Up 0–2% | — | — | Rising |
| Q4 FY26 call → | 0–10% | Flat | Planned | — | Rising |
| Q3 FY26 call → | 0–10% | Flat | — | — | Rising |
| Q2 FY26 call → | 0–10% | Flat | — | — | Rising |
What management guided on each call, newest first. Not investment advice, and not a forecast of returns.
Momentum score · price trend
10 out of 100 — Cooling
Over the past year its share price has done worse than most of the stocks we track.
| Period | Share price change | Better than … of 1,910 stocks |
|---|---|---|
| Last 12 months | −38.2% | 13% |
| Last 6 months | −12.9% | 34% |
| Last 3 months | −27.8% | 6% |
The price is 72.6% below its all-time high of ₹837.05 (23 Feb 2024). Stocks more than 20% below their peak have their score halved, so 20 became 10.
How we calculate it
“Better than 30%” means that over that period the share price did better than 30 out of every 100 stocks we track (1,910 Indian companies worth ₹500 Cr or more, with at least a year of prices).
The score weighs the longer periods more: 40% × 12-month + 40% × 6-month + 20% × 3-month. For Sonata Software Ltd: 0.4 × 13 + 0.4 × 34 + 0.2 × 6 = 20, halved to 10 because the price is more than 20% below its all-time high.
Strengthening is 70 and above, Steady 40 to 70, Cooling below 40. Scores are recalculated every night after the market closes.
Full methodology →This describes only how the share price has moved up to 28 Oct 2026, compared with other stocks. It says nothing about the business, and it is not a prediction, a price target or a recommendation to buy or sell.
Continue your research
What Sonata Software Ltd's management said in earlier quarters
- Q1 FY27 earnings call analysis →
- Q2 FY26 earnings call analysis →
- Q3 FY26 earnings call analysis →
- Q4 FY26 earnings call analysis →
- Q1 FY26 earnings call →
- Q4 FY25 earnings call →
- Q3 FY25 earnings call →
- Q2 FY25 earnings call →
- Q1 FY25 earnings call →
- Q4 FY24 earnings call →
- Q3 FY24 earnings call →
- Q2 FY24 earnings call →
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