Sonata Software Ltd.
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ABOUT
KEY POINTS
Revenue Breakup Mar 2026 • Revenue from Software Services: 84.3% • Revenue from Software Product & Licenses: 15.4% • Other Operating Revenues: 0.3%
AI Sector View
AI GENERATEDInformation Technology
IT is supported by a still-expanding services backdrop and a weaker rupee. Export of services grew 13.0% YoY (2026-06), services PMI was 54.1 (Aug/26), and the currency at 95.23 (Sep/26) is depreciated versus the previous 95.16, which helps INR translation of export revenues. FPI positioning is only neutral-to-soft with net 3-month flow of INR -5 crore to 2026-08-31, so the positive stance is primarily macro-driven.
PROS
- Company has a healthy return on capital (ROCE) of 45.4%
- Company has a good return on equity (ROE) track record: 3 Years ROE 40.7%
- Latest quarter profit grew 81.3% YoY, showing strong momentum
- Working capital cycle has improved - days down from 239 to 140
- Company comfortably covers its interest (27.4x coverage)
- Stock looks reasonably valued - P/E of 25.1 is below its historical median
CONS
- A large part of profit comes from other income (76.4% of PBT)
- Poor cash conversion - profits are not backed by operating cash flow (CFO/PAT -0.20x)
- Operating cash flow has been negative in recent years
- Contingent liabilities are large at 149.7% of net worth
- Operating margins have contracted to 11.3% from 31.5%
- Stock is trading at 7.3x its book value
* The pros and cons are machine generated based on quantitative rules.
Peer comparison
| Name | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| TCS | 2202.00 | 16.00 | 796702.87 | 5.00 | 13420.00 | 4.69 | 72275.00 | 13.93 | 66.25 | 25.67 |
| INFY | 1038.20 | 13.91 | 421325.69 | 4.62 | 7775.00 | 12.29 | 48211.00 | 14.03 | 42.84 | 23.66 |
| HCLTECH | 1207.00 | 18.80 | 327539.38 | 4.47 | 4626.00 | 20.34 | 34579.00 | 13.94 | 31.20 | 19.87 |
| WIPRO | 167.50 | 12.55 | 165902.38 | 6.57 | 3356.30 | 0.59 | 24478.60 | 10.59 | 18.49 | 18.93 |
| TECHM | 1539.50 | 29.38 | 150891.59 | 3.31 | 1486.30 | 31.67 | 15711.90 | 17.68 | 23.04 | 17.43 |
| LTM | 4301.15 | 24.39 | 127581.28 | 1.74 | 1468.60 | 17.06 | 11608.00 | 17.96 | 30.25 | 17.75 |
| OFSS | 11760.00 | 30.01 | 102409.76 | 3.40 | 1415.50 | 120.52 | 3125.20 | 68.73 | 45.50 | 60.04 |
| PERSISTENT | 5537.45 | 45.42 | 87353.27 | 0.72 | 483.04 | 13.67 | 4303.23 | 29.09 | 35.09 | 16.19 |
| COFORGE | 1847.40 | 46.58 | 81835.77 | 0.86 | 531.70 | 49.19 | 5527.70 | 49.86 | 24.70 | 19.14 |
| MPHASIS | 2294.10 | 22.92 | 43790.98 | 2.70 | 489.51 | 10.82 | 4384.05 | 17.46 | 23.31 | 18.15 |
| LTTS | 3334.95 | 26.80 | 35379.24 | 1.74 | 3571.00 | 1029.71 | 29401.00 | 1014.73 | 27.70 | 18.65 |
| SONATSOFTW | 265.85 | 16.10 | 7455.09 | 2.97 | 108.11 | -1.12 | 3279.10 | 10.59 | 29.47 | 5.21 |
Quarterly Results
Standalone Figures in Rs. Crores / View Consolidated
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 235 | 240 | 243 | 232 | 249 | 235 | 241 | 266 | 279 | 306 | 371 | 411 | 444 | |
| 231 | 222 | 213 | 212 | 211 | 227 | 236 | 241 | 245 | 277 | 333 | 332 | 398 | |
| Operating Profit | 4 | 18 | 29 | 20 | 38 | 8 | 5 | 25 | 34 | 30 | 38 | 79 | 46 |
| OPM % | 1.75% | 7.58% | 12.08% | 8.66% | 15.40% | 3.53% | 2.23% | 9.24% | 12.05% | 9.64% | 10.25% | 19.22% | 10.35% |
| 6 | 163 | 120 | 44 | 4 | 164 | 9 | 6 | 14 | 142 | 8 | 54 | 9 | |
| Interest | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 3 | 3 | 4 | 1 | 5 |
| Depreciation | 5 | 5 | 5 | 6 | 5 | 5 | 5 | 5 | 8 | 8 | 8 | 8 | 8 |
| Profit before Tax | 4 | 175 | 143 | 57 | 36 | 166 | 8 | 24 | 37 | 160 | 35 | 125 | 55 |
| Tax % | 16.44% | 3.56% | 5.79% | 9.98% | 30.24% | 0.90% | 26.09% | 26.38% | 37.95% | 8.51% | 5.92% | 38.83% | 25.21% |
| Net Profit | 4 | 168 | 135 | 52 | 25 | 165 | 6 | 18 | 23 | 147 | 33 | 76 | 41 |
| 0.13 | 6.07 | 4.86 | 1.86 | 0.91 | 5.93 | 0.21 | 0.65 | 0.82 | 5.29 | 1.19 | 2.75 | 1.49 |
Profit & Loss
Standalone Figures in Rs. Crores / View Consolidated
| Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 593 | 689 | 829 | 877 | 781 | 758 | 921 | 950 | 991 | 1,367 | 1,532 | |
| 445 | 529 | 603 | 675 | 548 | 619 | 799 | 879 | 918 | 1,212 | 1,340 | |
| Operating Profit | 148 | 160 | 226 | 201 | 234 | 139 | 121 | 72 | 73 | 155 | 192 |
| OPM % | 24.95% | 23.22% | 27.31% | 22.97% | 29.89% | 18.38% | 13.18% | 7.55% | 7.35% | 11.32% | 12.56% |
| 39 | 44 | 19 | 99 | 45 | 167 | 168 | 334 | 188 | 246 | 214 | |
| Interest | 4 | 0 | 0 | 11 | 10 | 9 | 7 | 5 | 5 | 14 | 13 |
| Depreciation | 4 | 5 | 6 | 21 | 19 | 18 | 19 | 21 | 21 | 31 | 31 |
| Profit before Tax | 179 | 198 | 239 | 269 | 250 | 280 | 264 | 380 | 235 | 357 | 375 |
| Tax % | 25.61% | 23.69% | 27.97% | 21.39% | 28.47% | 16.07% | 16.58% | 5.52% | 8.94% | 21.87% | 20.79% |
| Net Profit | 133 | 151 | 172 | 211 | 179 | 235 | 220 | 359 | 214 | 279 | 297 |
| EPS | 12.85 | 14.56 | 16.58 | 20.33 | 17.23 | 16.96 | 7.94 | 12.93 | 7.70 | 10.07 | — |
| Dividend Payout % | 70.02% | 72.05% | 76.83% | 99.59% | 81.25% | 92.77% | 99.13% | 61.10% | 57.14% | 78.45% | — |
COMPOUNDED SALES GROWTH
- 10 Years:
- 10%
- 5 Years:
- 12%
- 3 Years:
- 14%
COMPOUNDED PROFIT GROWTH
- 10 Years:
- 9%
- 5 Years:
- 9%
- 3 Years:
- 8%
STOCK PRICE CAGR
- 10 Years:
- 17%
- 5 Years:
- -4%
- 3 Years:
- -21%
- 1 Year:
- -30%
RETURN ON EQUITY
- 10 Years:
- 39%
- 5 Years:
- 41%
- 3 Years:
- 41%
- Last Year:
- 35%
Balance Sheet
Standalone Figures in Rs. Crores / View Consolidated
| Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 10 | 10 | 10 | 10 | 10 | 10 | 14 | 28 | 28 | 28 |
| 457 | 479 | 521 | 360 | 517 | 559 | 530 | 666 | 759 | 770 | |
| 6 | 8 | 18 | 74 | 64 | 53 | 32 | 38 | 46 | 183 | |
| Trade Payables | 39 | 58 | 52 | 78 | 93 | 101 | 109 | 86 | 65 | 178 |
| 33 | 43 | 45 | 110 | 487 | 192 | 230 | 250 | 159 | 351 | |
| Total Liabilities | 545 | 599 | 646 | 632 | 1,171 | 914 | 915 | 1,068 | 1,057 | 1,510 |
| 19 | 20 | 20 | 103 | 84 | 70 | 56 | 63 | 45 | 136 | |
| 136 | 199 | 149 | 56 | 98 | 143 | 84 | 64 | 78 | 62 | |
| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 520 | 665 | 897 | |
| Cash & Bank | 137 | 126 | 86 | 156 | 281 | 301 | 193 | 87 | 84 | 46 |
| 253 | 253 | 390 | 317 | 708 | 400 | 582 | 334 | 185 | 368 | |
| Total Assets | 545 | 599 | 646 | 632 | 1,171 | 914 | 915 | 1,068 | 1,057 | 1,510 |
Cash Flows
Standalone Figures in Rs. Crores / View Consolidated
| Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
| 131 | 181 | 110 | 351 | 270 | 202 | 10 | -191 | -21 | 43 | |
| Cash from Investing | 50 | 56 | 61 | 146 | -7 | 70 | 77 | 393 | 157 | 159 |
| Cash from Financing | -143 | -114 | -143 | -360 | -57 | -204 | -251 | -232 | -131 | -196 |
| 5 | 90 | -45 | 67 | 123 | 18 | -228 | -29 | 4 | 6 |
Ratios
Standalone Figures in Rs. Crores / View Consolidated
| Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|
Documents
Corporate disclosures, annual reports, credit ratings, and concall transcripts
2026-09-04 - Sonata Software Limited has informed the Exchange regarding 'Analyst Call / Investor Meet'.
2026-08-25 - Sonata Software Limited has informed the Exchange regarding 'intimation on effective date of merger of wholly owned subsidiary with the Company'.
2026-08-18 - Sonata Software Limited has informed the Exchange regarding 'Analyst Call / Investor Meet'.
2026-08-17 - Sonata Software Limited has informed the Exchange regarding a press release dated August 17, 2026, titled "Press Release-Sonata Software appoints Hariprasad Rebala as Chief AI Officer".
2026-08-11 - Sonata Software Limited has informed the Exchange about Transcript of the Analyst Call/Investor Meet held on August 7, 2026
2026-08-07 - Sonata Software Limited has informed the Exchange about Audio Link of recording for the Earnings call held on 7th August, 2026
2026-08-07 - Sonata Software Limited has informed the Exchange about Analyst Call / Investor Meet on 12th August, 2026
2026-08-07 - Sonata Software Limited has informed the Exchange about Copy of Newspaper Publication of unaudited financial results for the quarter ended 30th June, 2026
2026-08-07 - Sonata Software Limited has informed the Exchange about Investor Presentation
News
Recent coverage and analyst commentary for SONATSOFTW
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