The company recently released its March quarter results, where it reported a decline in revenue. While topline fell 17% sequentially, largely due to weakness in the domestic business, profitability improved.
Earnings before interest and tax (EBIT) rose 5.6% quarter-on-quarter, while EBIT margins expanded by 160 basis points.
The company also strengthened its order book during the quarter, securing two large deals. These included an AI-driven platform modernisation mandate from a global fintech company and a modern engineering contract from a private equity-backed software firm.Artificial intelligence continues to emerge as a key growth driver for Sonata. The company said its AI-focused pipeline has expanded to $335 million, with AI-related deal wins worth approximately $13.7 million already secured.
According to the company’s investor presentation, Fortune 500 companies account for 37% of its large-deal pipeline, highlighting growing traction among global enterprise clients.
In terms of technicals, Sonata Software’s relative strength index (RSI) stands at 47.1, indicating the stock is neither overbought nor oversold. The stock is currently trading above its 5-day, 20-day, 50-day, 100-day and 150-day moving averages, though it remains below its 200-day moving average.
Sonata Software shares were last trading 17.1% higher at ₹304.90. Despite Tuesday’s sharp rally, the stock remains down about 16% for the year.
