Global IT services and technology solutions company Sonata Software Ltd on Wednesday (July 30) reported a 7.4% year-on-year increase in net profit at ₹113.4 crore for the first quarter of this fiscal over ₹105.60 crore in Q1FY25.
The company reported consolidated revenue of ₹2,965.2 crore for the first quarter, reflecting a YoY growth of 17.3% from ₹2,527 crore last year. On a sequential basis, revenue rose 13.3%, indicating strong momentum across its business segments.
EBITDA (before other income and forex) stood at ₹159.6 crore, reflecting a decline of 7.6% quarter-on-quarter. The company’s gross cash and cash equivalents stood at ₹600 crore, while net cash stood at negative ₹62.5 crore. Return on capital employed (ROCE) fell to 18.5%, compared to 21.9% in Q4FY25, and return on net worth (RONW) stood at 24%, down from 25.2% in the previous quarter.
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In its international IT services segment, Sonata reported revenue of $81.8 million in Q1FY26, a 0.6% QoQ growth in USD terms and a 0.9% decline in constant currency terms. In rupee terms, revenue was ₹699.9 crore, down 0.3% sequentially. EBITDA margin (before other income and forex) stood at 16.6%, with a marginal QoQ increase of 0.1 basis points.
Profit after tax (PAT) for the segment rose 13.5% QoQ to ₹70.7 crore. Days sales outstanding (DSO) for the quarter stood at 62 days, up from 61 days in Q4FY25. ROCE declined to 14.7% from 16.3%, while RONW improved to 20.9% from 19.3%. The company added seven new customers during the quarter, including a $73 million AI-led digital modernisation deal with a leading US TMT company.
In the domestic products & services segment, Sonata reported revenue of ₹2,274.7 crore for Q1FY26, showing a robust QoQ growth of 18.6%. However, gross contribution declined 12.6% to ₹68.5 crore. EBITDA (before other income and forex) dropped 22.1% QoQ to ₹44.0 crore, and PAT declined 14.6% to ₹38.6 crore. DSO increased significantly to 63 days from 46 days in Q4FY25. ROCE fell to 33.6% from 43.2%, while RONW declined to 32.5% from 47.7%.
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Dividend
The company declared an interim dividend of ₹1.25 per equity share (125% on face value of ₹1) for FY2025-26. The record date for dividend payment is August 8, and the dividend will be disbursed on or after August 20, 2025, either through electronic mode or by dividend warrants.
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Shares of Sonata Software Ltd ended at ₹414.75, up by ₹6.50 or 1.59%, on the BSE today (July 30).
