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Sonata Software Ltd.

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sonata-software.comBSE: 532221NSE: SONATSOFTW
Market Cap₹ 7,492 Cr.
Current Price
High / Low₹ 422 / 207
Stock P/E25.2
Book Value₹ 30
Price to Book7.26
Dividend Yield2.96 %
ROCE43.4 %
ROE35.2 %
Face Value₹ 1

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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 GENERATED

Information Technology

Buy

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.

Confidence
68%
View full sector analysis →

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 25.2 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

Information TechnologyITIT - Software
Part ofNIFTY TOTAL MKTNIFTY SML250 Q50NIFTY 500NIFTY SMLCAP 250
S.No.Name
1.TCS2209.0016.05799235.534.9813420.004.6972275.0013.9366.2525.67
2.INFY1035.0013.87420027.064.647775.0012.2948211.0014.0342.8423.66
3.HCLTECH1226.5519.10332844.594.404626.0020.3434579.0013.9431.2019.87
4.WIPRO167.5012.55165902.386.573356.300.5924478.6010.5918.4918.93
5.TECHM1502.2528.67147240.593.391486.3031.6715711.9017.6823.0417.43
6.LTM4403.1024.97130605.331.701468.6017.0611608.0017.9630.2517.75
7.OFSS11623.0029.66101216.723.441415.50120.523125.2068.7345.5060.04
8.PERSISTENT5390.0044.2185027.250.74483.0413.674303.2329.0935.0916.19
9.COFORGE1846.9046.5781813.620.86531.7049.195527.7049.8624.7019.14
10.MPHASIS2311.6523.1044125.992.68489.5110.824384.0517.4623.3118.15
11.LTTS3360.5527.0135647.891.733571.001029.7129401.001014.7327.7018.65
12.SONATSOFTW267.1516.177491.552.96108.11-1.123279.1010.5929.475.21
Detailed Comparison with:

Quarterly Results

Standalone Figures in Rs. Crores / View Consolidated

Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
235240243232249235241266279306371411444
231222213212211227236241245277333332398
Operating Profit41829203885253430387946
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%
616312044416496141428549
Interest1111111133415
Depreciation5556555588888
Profit before Tax41751435736166824371603512555
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 Profit4168135522516561823147337641
0.136.074.861.860.915.930.210.650.825.291.192.751.49

Profit & Loss

Standalone Figures in Rs. Crores / View Consolidated

Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
5936898298777817589219509911,3671,532
4455296036755486197998799181,2121,340
Operating Profit1481602262012341391217273155192
OPM %24.95%23.22%27.31%22.97%29.89%18.38%13.18%7.55%7.35%11.32%12.56%
3944199945167168334188246214
Interest400111097551413
Depreciation4562119181921213131
Profit before Tax179198239269250280264380235357375
Tax %25.61%23.69%27.97%21.39%28.47%16.07%16.58%5.52%8.94%21.87%20.79%
Net Profit133151172211179235220359214279297
EPS12.8514.5616.5820.3317.2316.967.9412.937.7010.07—
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:
16%
5 Years:
-4%
3 Years:
-23%
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

Corporate actions

2023

Dec 12

1:1

Interim Dividend & Bonus issue & Quarterly Results

2022

Sep 8

1:3

Quarterly Results & Bonus issue

Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital10101010101014282828
457479521360517559530666759770
6818746453323846183
Trade Payables39585278931011098665178
334345110487192230250159351
Total Liabilities5455996466321,1719149151,0681,0571,510
1920201038470566345136
136199149569814384647862
0000000520665897
Cash & Bank13712686156281301193878446
253253390317708400582334185368
Total Assets5455996466321,1719149151,0681,0571,510

Cash Flows

Standalone Figures in Rs. Crores / View Consolidated

Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
13118111035127020210-191-2143
Cash from Investing505661146-77077393157159
Cash from Financing-143-114-143-360-57-204-251-232-131-196
590-456712318-228-2946

Ratios

Standalone Figures in Rs. Crores / View Consolidated

Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026

Shareholding Pattern

Numbers in percentages

Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
28.1728.1728.1728.1728.1728.1728.1728.1728.17
12.4112.1312.2910.769.688.858.798.749.17
21.5623.3724.3025.8525.5526.3226.2925.5424.67
Government0.000.000.000.000.000.000.000.000.00
37.8536.3335.2435.2236.5936.6636.7437.5538.00

Documents

Corporate disclosures, annual reports, credit ratings, and concall transcripts

2026-09-04
Updates

2026-09-04 - Sonata Software Limited has informed the Exchange regarding 'Analyst Call / Investor Meet'.

2026-08-25
Updates

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
Updates

2026-08-18 - Sonata Software Limited has informed the Exchange regarding 'Analyst Call / Investor Meet'.

2026-08-17
Press Release

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
Analysts/Institutional Investor Meet/Con. Call Updates

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
Analysts/Institutional Investor Meet/Con. Call Updates

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
Analysts/Institutional Investor Meet/Con. Call Updates

2026-08-07 - Sonata Software Limited has informed the Exchange about Analyst Call / Investor Meet on 12th August, 2026

2026-08-07
Copy of Newspaper Publication

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
Investor Presentation

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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