Sonata Software Posts Q3 FY26 Revenue Growth

Sonata Software, a leading Modernization Engineering Company, has reported its unaudited financial results for the Quarter ended December 31, 2025.

EBITDA (before Other Income & Fx, and exceptional item)

Pursuant to the notification of the new Labour Codes by the Government of India, Sonata recognised a one-time incremental expense towards past service costs for employee benefits. Accordingly, an exceptional item of ₹31.3 crore was recorded during the quarter, comprising gratuity of ₹23.3 crore and leave encashment of ₹8.0 crore.

Commenting on the Q3 performance, Mr. Samir Dhir, MD & CEO of Sonata Software, said:

International IT Services delivered steady progress during the quarter, with consolidated PAT improving significantly in the last two quarters. Following a 10% PAT growth in the previous quarter, we achieved a further 6.1% quarter-on-quarter growth in the current quarter. The business secured a large deal in the BFSI vertical with a Fortune 500 fintech client, reinforcing our strategy of driving growth through large deals backed by disciplined execution. Our continued strategic investments in Artificial Intelligence contributed approximately 14% of the overall order book for the quarter. 

Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, added:

We delivered a seasonally strong quarter in our domestic business. Our three-pillar strategy to diversify the business is in motion, focused on building a scaled and resilient operating model. We remain confident that this strategic direction will drive a more diversified, scalable, and future-ready business.

Financial Highlights for Q3’26:                      

• International IT Services:

• In USD terms, Q3’26 revenue stood at $82.3 million, growth of 0.4% QoQ and 0.3% in CC.
• In Rupee terms, Q3’26 revenue stood at ₹738.6 crores, growth of 1.1% QoQ.
• EBITDA (before other income and forex) for Q3’26 stood at 19.5%, 220bps accretion QoQ.
• PAT before exceptional item for Q3’26 stood at ₹80.4 crores, growth of 3.0% QoQ
• PAT post exceptional item for Q3’26 stood at ₹59.8 crores.
• DSO stood at 71 days in Q3’26, compared to 68 days in Q2’26.
• ROCE stood at 18.7% in Q3’26, compared to 17.8% in Q2’26.
• RONW stood at 23.1% in Q3’26, compared to 22.6% in Q2’26.
• 3 new customers were added during the quarter.

• Domestic Products & Services:

• Revenue for Q3’26 stood at ₹2,345.9 crores, growth of 68.6% QoQ.
• Gross contribution for Q3’26 stood at ₹76.1 crores, growth of 10.8% QoQ.
• EBITDA (before other income and forex) for Q3’26 stood at ₹56.2 crores, 20.9% QoQ.
• PAT before exceptional item for Q3’26 stood at ₹47.1 crores, growth of 11.6% QoQ.
• PAT post exceptional item for Q3’26 stood at ₹44.6 crores.
• DSO stood at 42 days in Q3’26, Same as compared to Q2’26.
• ROCE stood at 43.1% in Q3’26, compared to 43.8% in Q2’26.
• RONW stood at 41.8% in Q3’26, compared to 42.5% in Q2’26.

• Consolidated:

• Revenue for Q3’26 stood at ₹3,080.6 crores, growth of 45.4% QoQ.
• EBITDA (before other income and forex) for Q3’26 stood at ₹200.2 crores, growth of 15.9% QoQ.
• PAT before exceptional item for Q3’26 stood at ₹127.5 crores, growth of 6.1% QoQ and 21.4% YoY.
• PAT post exceptional item for Q3’26 stood at ₹104.4 crores.
• Cash and cash equivalents (gross) stood at INR 564 Crores.
• Cash and cash equivalents (net) stood at negative ₹ 12 Crores.
• ROCE stood at 23.3% in Q3’26, compared to 22.1% in Q2’26.
• RONW stood at 27.7% in Q3’26, compared to 27.1% in Q2’26.
• The Company has declared its third interim dividend for the financial year at ₹1.25 per share. This is in line with the commitment made during the Q1’26 earnings call to implement a quarterly interim dividend payout policy starting this year.