Sonata Software Limited (IN:SONATSOFTW)
:SONATSOFTW
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Sonata Software Limited
(SONATSOFTW)
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Rating:69Neutral
Price Target:
₹299.00
▼(-18.00% Downside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by solid overall financial strength and revenue growth, tempered by margin compression and volatile cash-flow conversion. Technicals are mixed with improving near-term momentum but a still-weak longer-term trend. Valuation is supportive with a moderate P/E and a ~3% dividend yield.
Positive Factors
Business model & recurring services
Sonata’s service-led model — consulting, systems integration, cloud/data and managed services plus product/platform work — creates a diversified, recurring revenue base tied to long-term enterprise transformation projects. That mix supports stickiness, cross-sell and stable contract revenue over multi-year cycles.
Negative Factors
Margin compression since 2024
Sustained margin contraction erodes cash generation and the quality of reported earnings. If cost pressures or adverse mix persist, margin compression will limit free cash flow, reduce reinvestment capacity, and weaken competitive ability to fund differentiation over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Business model & recurring services
Sonata’s service-led model — consulting, systems integration, cloud/data and managed services plus product/platform work — creates a diversified, recurring revenue base tied to long-term enterprise transformation projects. That mix supports stickiness, cross-sell and stable contract revenue over multi-year cycles.
Read all positive factors
Sonata Software Limited (SONATSOFTW) vs. iShares MSCI India ETF (INDA)
Market Cap
₹74.93B
Dividend Yield2%
Average Volume (3M)109.98K
Price to Earnings (P/E)12.5
Beta (1Y)1.95
Revenue Growth5.36%
EPS Growth9.42%
CountryIN
Employees6,043
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)15.92
Shares Outstanding280,424,800
10 Day Avg. Volume87,229
30 Day Avg. Volume109,976
Financial Highlights & Ratios
PEG Ratio1.33
Price to Book (P/B)3.05
Price to Sales (P/S)0.54
P/FCF Ratio14.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)18.79
Revenue Forecast (FY)₹113.24B
Sonata Software Limited Business Overview & Revenue Model
Company Description
Sonata Software Limited, together with its subsidiaries, provides information technology services and solutions in India, the United States, Europe, the Middle East, and Australia. It also offers software development, technical, and product market...
How the Company Makes Money
Sonata Software makes money primarily by selling IT services and technology solutions to enterprise customers under commercial contracts. Key revenue streams typically include: (1) Services revenue from consulting and project-based work (e.g., sys...
Sonata Software Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 105.44B | 107.01B | 101.57B | 86.13B | 74.49B | 55.53B |
| Gross Profit | 12.85B | 12.36B | 13.25B | 15.30B | 10.60B | 8.41B |
| EBITDA | 6.86B | 6.44B | 6.89B | 6.77B | 6.71B | 5.64B |
| Net Income | 4.42B | 4.64B | 4.25B | 3.08B | 4.52B | 3.76B |
Balance Sheet | ||||||
| Total Assets | 46.09B | 50.91B | 47.55B | 51.49B | 43.57B | 25.55B |
| Cash, Cash Equivalents and Short-Term Investments | 3.32B | 6.04B | 6.95B | 11.38B | 9.30B | 8.96B |
| Total Debt | 7.39B | 7.23B | 5.16B | 7.65B | 5.91B | 1.59B |
| Total Liabilities | 28.37B | 31.87B | 30.49B | 37.43B | 30.56B | 14.56B |
| Stockholders Equity | 17.72B | 19.05B | 17.06B | 14.06B | 13.01B | 10.99B |
Cash Flow | ||||||
| Free Cash Flow | -222.40M | 3.95B | 5.76B | 2.55B | 2.27B | 4.41B |
| Operating Cash Flow | 366.30M | 5.08B | 6.44B | 2.81B | 2.68B | 4.50B |
| Investing Cash Flow | -776.70M | -2.25B | -4.36B | -543.10M | -8.55B | -834.70M |
| Financing Cash Flow | -807.00M | -2.29B | -4.33B | -1.08B | 1.87B | -2.71B |
Sonata Software Limited Technical Analysis
Positive
364.65
Price Trends
252.64
Positive
284.65
Negative
323.94
Negative
Market Momentum
2.90
Positive
52.87
Neutral
27.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SONATSOFTW, the sentiment is Positive. The current price of 364.65 is above the 20-day moving average (MA) of 267.61, above the 50-day MA of 252.64, and above the 200-day MA of 323.94, indicating a neutral trend. The MACD of 2.90 indicates Positive momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 27.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:SONATSOFTW.
Sonata Software Limited Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | ₹50.15B | 9.80 | ― | 1.62% | 7.55% | 7.12% | |
73 Outperform | ₹111.61B | 14.48 | ― | 1.75% | 7.70% | 19.18% | |
69 Neutral | ₹74.93B | 12.52 | ― | 2.00% | 5.36% | 9.42% | |
69 Neutral | ₹801.91B | 37.31 | ― | 0.55% | 23.53% | 31.95% | |
68 Neutral | ₹89.33B | 17.94 | ― | 1.42% | -1.21% | -0.57% | |
68 Neutral | ₹56.98B | 42.91 | ― | 1.26% | 16.66% | -16.99% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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Sonata Software Limited Corporate Events
Sonata Software posts earnings call audio to bolster investor transparency
May 11, 2026
Sonata Software Limited has notified stock exchanges that the audio recording of its analysts and investors earnings call held on May 11, 2026 has been uploaded to the investor relations section of its website. The disclosure, made under SEBI list...
Sonata Software Names AI-Focused Insider Rajsekhar Datta Roy as New CEO
Apr 26, 2026
Sonata Software has appointed Rajsekhar Datta Roy as Chief Executive Officer, effective May 9, 2026, for a three-year term, with responsibility for leading the company’s international business. Raj, previously Chief Delivery Officer and a ke...
Sonata Software Announces CEO Transition as Samir Dhir’s Term Ends
Apr 25, 2026
Sonata Software has announced a change in top leadership following a board meeting held on April 25, 2026, with current Managing Director and Chief Executive Officer Samir Dhir set to vacate his office upon the expiry of his term on May 8, 2026. I...
Sonata Software appoints Balaji Kumar as global Chief Human Resources Officer
Mar 14, 2026
Sonata Software Limited has appointed Balaji Kumar as its Chief Human Resources Officer, effective 14 March 2026, with responsibility for the company’s global People and Talent function from its Bengaluru corporate office. Kumar, who previou...
Sonata Software Unit Files US Bankruptcy Case to Recover $10.64 Million from Client
Mar 7, 2026
Sonata Software North America, Inc., a subsidiary of Sonata Software Limited, has initiated legal proceedings in the United States Bankruptcy Court for the District of Delaware against client OBSA Operating Company, LLC. The action is an involunta...
Sonata Software Completes Dispatch of Postal Ballot Notice and Publishes Statutory Ads
Feb 28, 2026
Sonata Software has notified stock exchanges that it has completed dispatch of its postal ballot notice to shareholders as of 27 February 2026. The company has also published statutory advertisements in regional and national newspapers and provide...
Sonata Software Updates Market on One-on-One Analyst Meeting
Feb 20, 2026
Sonata Software Limited has disclosed that its management held a one-on-one virtual meeting with Aditya Birla Sun Life Asset Management Company Ltd. on 20 February 2026 as part of its regular analyst and institutional investor engagement activitie...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.