Tuesday, June 24, 2025

Sonata Software Q3 Results: Profit after tax declines 1.4% QoQ, revenue rises

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IT services firm Sonata Software Ltd reported a 1.4% quarter-on-quarter (QoQ) decline in consolidated profit after tax (PAT) at ₹105 crore for the third quarter of fiscal 2025. EBITDA fell 7.8% QoQ to ₹163.6 crore, while the company’s cash and cash equivalents stood at ₹176 crore at the end of the quarter.

Company Value Change %Change

Revenue from international IT services stood at ₹731.7 crore, marking a 3.4% sequential increase. In USD terms, revenue was $87 million, growing 2.8% QoQ and 3.9% YoY. EBITDA for the segment declined 16.9% QoQ to ₹107.1 crore, while PAT fell 8.4% to ₹56.9 crore. Days sales outstanding (DSO) rose to 47 days from 45 days in the previous quarter, and the company added 11 new customers during the period.

The domestic products and services business recorded a 16.7% QoQ growth in gross contribution, reaching ₹81.9 crore. EBITDA for the segment increased 16.6% QoQ to ₹56.4 crore, while PAT grew 8.5% to ₹48.1 crore. DSO rose to 41 days from 35 days in the previous quarter. Return on capital employed (ROCE) improved to 48.5% from 45.2%, while return on net worth (RONW) rose to 47.7% from 44.6%.

Speaking on the quarterly results, Samir Dhir, MD & CEO of the company said, “In Q3’25, our International business delivered 4.4%(CC) QoQ growth and EBIDTA drop due to onetime cost items. During the quarter, we won two large deals, our first multi-million-dollar deal on Microsoft Fabric, and for Gen AI modernization. We remain optimistic about our long-term vision and growth prospects of Sonata.”

Shares of Sonata Software ended 0.3% higher at 551.60 on Thursday.

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