Sonata Software Q1 PAT rises 2% QoQ to Rs 109 cr

Revenue from operations jumped 13.29% QoQ to Rs 2,965.18 crore during the quarter ended 30 June 2025.

On a year-on-year basis, the company?s profit after tax increased by 3.51%, while revenue from operations grew by 17.31% in Q1 FY26.

Profit before tax stood at Rs 4,258.3 crore for the quarter, up 1.30% quarter-on-quarter (QoQ) and 7.73% year-on-year (YoY).

EBITDA stood at Rs 159.6 crore in Q1 FY26, down 7.6% quarter-on-quarter (QoQ) and 9.4% year-on-year (YoY).

In International IT Services segment, revenues for Q1 FY26 stood at Rs 699.9 crore, QoQ de-growth of 0.3%. In USD terms, revenue stood at $81.8 million, marking a modest 0.6% increase quarter-on-quarter (QoQ). However, when adjusted for constant currency (CC), revenue saw a 0.9% QoQ decline, highlighting the impact of currency fluctuations.

The Domestic Products & Services segment delivered robust top-line growth in Q1 FY26, though profitability metrics showed some pressure.

Revenue for the quarter stood at Rs 2,274.7 crore, reflecting a strong 18.6% quarter-on-quarter (QoQ) growth, driven by increased demand and expanded offerings.

However, gross contribution for the same period declined to ₹68.5 crore, marking a 12.6% drop QoQ, indicating margin compression or higher input costs.

Samir Dhir, MD & CEO of Sonata Software, said: ?International IT Services Q1 marked steady progress with revenue growth of 0.6% QoQ. We secured three large deals - two in BFSI and one in TMT - underscoring our focus on large deals and execution strength. Our focused investments in Healthcare and BFSI have scaled from 13% to 32% of revenue over three years, validating our diversification strategy. As clients accelerate modernization to stay competitive, we remain confident in our long-term growth trajectory.?

Sujit Mohanty, MD & CEO of Sonata Information Technology, added: ?We gained new clients in cloud and data protection services. Our continued investments and partnerships with leading cloud providers position us well to grow revenue from cloud-managed services in the coming quarters.?

Sonata Software 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.

Shares of Sonata Software tanked 5.50% to currently trade at Rs 391.05 on the BSE.

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