Sonata Software Limited (IN:SONATSOFTW)
:SONATSOFTW
Want to see IN:SONATSOFTW full AI Analyst Report?
Top Page
Sonata Software Limited
(SONATSOFTW)
Select Model
Select Model
Rating:67Neutral
Price Target:
₹339.00
▼(-7.03% Downside)
Action:Reiterated
Date:06/17/26
The score is driven primarily by solid financial performance (strong revenue growth and generally sound balance sheet) tempered by margin compression and uneven cash-flow conversion. Technicals are moderately supportive but show a stretched RSI and price slightly below the 200-day average, while valuation is reasonable with a supportive dividend yield.
Positive Factors
Revenue scaling & 2026 re-acceleration
Sustained multi-year revenue scaling with a clear re-acceleration in 2026 indicates durable client demand and successful market penetration. Persistent top-line expansion supports investment in delivery capabilities, increases cross-sell potential, and strengthens long-term contract pipelines over the next several quarters.
Negative Factors
Margin compression since 2024
Meaningful margin erosion across gross, operating and EBITDA lines signals rising cost pressure or adverse mix shifts. If sustained, lower margin efficiency will reduce earnings quality per revenue dollar, limit free cash generation and constrain reinvestment, dividend capacity and buffer against downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scaling & 2026 re-acceleration
Sustained multi-year revenue scaling with a clear re-acceleration in 2026 indicates durable client demand and successful market penetration. Persistent top-line expansion supports investment in delivery capabilities, increases cross-sell potential, and strengthens long-term contract pipelines over the next several quarters.
Read all positive factors
Sonata Software Limited (SONATSOFTW) vs. iShares MSCI India ETF (INDA)
Market Cap
₹87.18B
Dividend Yield2%
Average Volume (3M)109.98K
Price to Earnings (P/E)18.4
Beta (1Y)1.96
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)18.56
Revenue Forecast (FY)₹113.24B
Sonata Software Limited Business Overview & Revenue Model
Company Description
Sonata Software Limited, along with its subsidiaries, delivers a broad spectrum of information technology services and specialized solutions across a global footprint, serving clients in India, the United States, Europe, the Middle East, and Austr...
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
267.32
Positive
269.11
Positive
315.08
Negative
Market Momentum
7.42
Negative
68.38
Neutral
89.47
Negative
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 272.00, above the 50-day MA of 267.32, and above the 200-day MA of 315.08, indicating a neutral trend. The MACD of 7.42 indicates Negative momentum. The RSI at 68.38 is Neutral, neither overbought nor oversold. The STOCH value of 89.47 is Negative, 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 | ₹50.74B | 12.55 | ― | 1.62% | 7.55% | 7.12% | |
73 Outperform | ₹105.28B | 13.54 | ― | 1.75% | 7.70% | 19.18% | |
69 Neutral | ₹778.57B | 41.44 | ― | 0.55% | 23.53% | 31.95% | |
68 Neutral | ₹90.88B | 17.60 | ― | 1.42% | -1.21% | -0.57% | |
67 Neutral | ₹87.18B | 18.44 | ― | 2.00% | 5.36% | 9.42% | |
63 Neutral | ₹53.48B | 24.86 | ― | 1.26% | 12.34% | 14.77% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
IN:SONATSOFTW
Sonata Software Limited
297.55
-88.32
-22.89%
IN:BSOFT
Birlasoft Limited
326.30
-86.98
-21.05%
IN:HAPPSTMNDS
Happiest Minds Technologies Ltd.
345.25
-268.87
-43.78%
IN:MASTEK
Mastek Limited
1,610.15
-809.47
-33.45%
IN:PERSISTENT
Persistent Systems Limited
4,827.45
-1,214.93
-20.11%
IN:ZENSARTECH
Zensar Technologies Limited
447.90
-374.87
-45.56%
Sonata Software Limited Corporate Events
Sonata Software Publishes Notices on Transfer of Unclaimed Shares to IEPF
Jun 3, 2026
Sonata Software Limited has published newspaper advertisements announcing the transfer of certain equity shares to the Investor Education and Protection Fund, in line with statutory requirements on unclaimed investor holdings. The notices, carried...
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...
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.