Sonata Software Reports 25% QoQ Profit Increase Amid Revenue Decline
Sonata Software surges after Q4 PAT climbs 25% QoQ to Rs 130 cr
Business Standard
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Sonata Software's consolidated net profit rose by 25.05% to ₹130.50 crore in Q4 FY26, despite a 17.67% drop in revenue to ₹2,536.19 crore. The company continues to focus on AI and cloud services, securing two significant deals during the quarter.
- 01Consolidated net profit increased by 25.05% QoQ to ₹130.50 crore.
- 02Revenue from operations fell by 17.67% QoQ to ₹2,536.19 crore.
- 03Profit before tax rose by 20.87% QoQ to ₹170.17 crore.
- 04Sonata Software plans to invest further in AI capabilities.
- 05The board has recommended a final dividend of ₹4.15 per equity share.
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Sonata Software's stock surged 6.81% to ₹289.50 following a strong quarterly performance. The company reported a 25.05% increase in consolidated net profit, reaching ₹130.50 crore in Q4 FY26, despite a 17.67% decline in revenue from operations, which totaled ₹2,536.19 crore. Year-on-year, net profit grew by 21.36%, while revenue fell by 3.1%. Profit before tax also saw a significant increase, climbing 20.87% QoQ to ₹170.17 crore. The company's EBITDA rose by 4.2% QoQ to ₹208.7 crore. In the domestic market, revenue from products and services dropped 25% QoQ, while the International IT Services segment saw a 5.5% increase in revenue. Sonata's CEO-designate, Rajsekhar Datta Roy, expressed confidence in the company's growth trajectory, emphasizing investments in AI capabilities and partnerships. The board has also recommended a final dividend of ₹4.15 per equity share for the financial year ending March 31, 2026.
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The increase in net profit and the proposed dividend may positively influence investor sentiment and shareholder returns.
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