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Sonata Software Ltd

SONATSOFTW NSE

Key Fundamentals

MicrocapComputer Software & ConsultingInformation Technology
Market Cap
₹8,887 Cr
Volatility
Moderate
P/E Ratio
18.73
EBITDA
₹846 Cr
Return on Equity
24.38%
Debt to Equity
0.38
Book Value
₹67.93
EPS
₹14.74
52W High
₹421.5
52W Low
₹207.15

Insights

Beta

AI-extracted from concalls & annual reports · figures as reported, with sources

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45 extracted metrics + investor summaries across FY12–FY26.

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Technical Indicators

Key Insights

Strengths

3
  • Company has a good return on equity (ROE) track record: 3 Years ROE 28.5%
  • Company has been maintaining a healthy dividend payout of 59.5%
  • Company's median sales growth is 19.3% of last 10 years

Weaknesses

1
  • Promoter holding is low: 28.2%

Growth Rate

Revenue Growth
5.65% ↘
Net Income Growth
9.35% ↗
Cash Flow Change
-16.50% ↘
ROE
-2.05% ↗
ROCE
-8.36% ↗
EBITDA Margin (Avg.)
5.38% ↗

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 43d ago
AI opinion · based on fundamentals
Risk high

Sonata Software Ltd is a mid-cap IT company with a market cap of ₹7,630 Cr trading at a PE of 16.8x. The company has delivered a 10-year sales CAGR of 19% and maintained ROE above 28% consistently, but the stock has declined 32% over the past year and promoter holding remains low at 28.2%.

Bull Case 8
  • Strong long-term revenue track record with 10-year compounded sales growth of 19% and 5-year sales CAGR of 20%
  • Consistent return on equity with 3-year ROE of 29%, 5-year ROE of 31%, and 10-year ROE of 32%, indicating efficient capital allocation
  • Current PE of 16.8x is significantly below typical IT sector multiples, suggesting the stock has de-rated considerably
  • Healthy dividend payout ratio of 52% with a current dividend yield of 1.35%, providing income to shareholders
  • TTM profit growth of 20% indicates recent earnings recovery and operational improvement
  • 10-year stock CAGR of 16% demonstrates long-term value creation despite recent correction
  • Price-to-book ratio of 4.09x is reasonable for a company generating 28%+ ROE consistently
  • 5-year compounded profit growth of 16% shows the company has been able to scale profitably over medium-term periods
Bear Case 8
  • Stock has declined 32% in the last 1 year, reflecting significant negative sentiment or business challenges
  • Promoter holding is low at 28.2%, which raises concerns about alignment of interests and vulnerability to hostile actions
  • 3-year compounded profit growth of only 4% despite 13% sales growth in the same period, indicating margin compression
  • 3-year stock CAGR of -18% suggests sustained underperformance and potential structural concerns
  • TTM sales growth has decelerated sharply to just 5% compared to 5-year CAGR of 20%, signaling a slowdown
  • 5-year stock CAGR of 0% means shareholders have received no capital appreciation over half a decade
  • Last year ROE of 28% has declined from the 5-year average of 31% and 10-year average of 32%, showing deteriorating capital efficiency
  • Divergence between TTM profit growth of 20% and TTM sales growth of 5% may reflect one-time items rather than sustainable operational improvement

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 43d ago
Positives 5
  • Shares surge 18% on results Jun 16

    Stock rallied over 18% to ₹304.90 with trading volumes 25x above normal, marking the most significant gain in five years driven by strong Q3 results and NCLT approval.

  • AI pipeline expands to $335M Jun 16

    AI-focused pipeline grew to $335 million with AI-related deal wins worth approximately $13.7 million. Fortune 500 companies account for 37% of large-deal pipeline.

  • EBIT margins expand 160 bps Jun 16

    EBIT rose 5.6% QoQ with margins expanding 160 basis points in March quarter despite 17% sequential topline decline due to domestic business weakness.

  • NCLT approves Encore amalgamation Jun 12

    NCLT Chennai Bench sanctioned the amalgamation of Encore IT Services with Sonata Software effective April 1, 2024, simplifying corporate structure and reducing compliance costs.

  • Two large deals secured Jun 16

    Company won an AI-driven platform modernisation mandate from a global fintech company and a modern engineering contract from a PE-backed software firm during the quarter.

Neutral 2
  • US legal case dismissed Jul 3

    Sonata Software's US subsidiary had its involuntary petition against OBSA dismissed by the Court. OBSA later executed a separate assignment for creditors under California law.

  • Banyan Tree Advisors meeting Jun 29

    Management held a virtual meeting with Banyan Tree Advisors on June 29, 2026 with no unpublished price sensitive information shared.

TL;DR: Sonata Software is showing strong momentum with an 18% stock surge, improving profitability (EBIT margins up 160 bps), and a rapidly expanding AI pipeline at $335 million. The Encore IT merger simplifies structure and strengthens AI capabilities. Key risk is the 17% sequential revenue decline in domestic business, though this was offset by margin improvement. The trend is improving with AI emerging as a credible growth driver and large-deal traction building among Fortune 500 clients.

Quarterly Results

  Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Sales
2,016
1,913
2,493
2,192
2,527
2,170
2,843
2,617
2,965
2,119
3,081
2,536
3,279
Expenses
1,837
1,715
2,286
2,047
2,351
1,993
2,679
2,445
2,806
1,947
2,880
2,328
3,108
Operating Profit
178
197
208
144
176
177
164
173
160
173
200
209
171
OPM %
9%
10%
8%
7%
7%
8%
6%
7%
5%
8%
6%
8%
5%
Other Income
28
23
-155
55
19
19
21
11
24
31
-20
6
7
Interest
21
21
22
22
20
19
16
10
5
14
13
19
12
Depreciation
31
33
34
34
33
33
32
23
26
26
27
25
28
PBT
154
167
-3
144
142
144
137
151
153
164
141
170
137
Tax %
22%
25%
1389%
23%
25%
26%
23%
29%
28%
27%
26%
23%
21%
Net Profit
120
124
-46
110
106
106
105
108
109
120
104
130
108
EPS in Rs
4.28
4.43
-1.65
3.94
3.77
3.8
3.74
3.83
3.9
4.29
3.72
4.65
3.86
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026TTM
Sales
1,682
1,940
2,371
2,454
2,961
3,743
4,228
5,553
7,449
8,613
10,157
10,701
11,015
Expenses
1,514
1,749
2,191
2,223
2,625
3,370
3,848
5,090
6,845
7,885
9,468
9,958
10,263
Operating Profit
168
192
180
231
336
373
380
464
604
728
690
743
752
OPM %
10%
10%
8%
9%
11%
10%
9%
8%
8%
8%
7%
7%
7%
Other Income
23
47
67
47
30
58
28
102
71
-50
71
40
24
Interest
3
8
9
5
3
15
15
18
19
85
65
51
58
Depreciation
6
6
11
12
13
37
40
47
59
132
121
104
107
PBT
182
225
226
260
349
379
352
500
597
461
574
627
612
Tax %
27%
30%
31%
26%
29%
27%
31%
25%
24%
33%
26%
26%
—
Net Profit
133
159
157
192
249
277
244
376
452
308
425
464
463
EPS in Rs
4.77
5.66
5.57
6.87
8.89
9.88
8.7
13.42
16.12
11
15.14
16.56
16.52
Div. Payout %
55%
60%
60%
57%
53%
76%
60%
58%
48%
103%
29%
47%
—
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
11
11
10
10
10
10
10
10
14
28
28
28
Reserves
418
460
580
643
758
659
895
1,089
1,287
1,379
1,678
1,877
Borrowings
24
176
55
34
16
86
185
159
590
765
516
723
Other Liabilities
355
345
552
545
744
861
856
1,297
2,466
2,889
2,448
2,354
Total Liabilities
808
992
1,198
1,232
1,528
1,616
1,947
2,555
4,357
5,061
4,670
4,982
Fixed Assets
23
120
118
114
199
298
324
427
1,732
1,671
1,603
1,823
CWIP
0
0
0
0
1
0
0
0
1
0
26
74
Investments
64
52
128
198
146
14
76
159
220
245
249
186
Other Assets
721
820
951
920
1,182
1,305
1,547
1,970
2,404
3,145
2,792
2,898
Total Assets
808
992
1,198
1,232
1,528
1,616
1,947
2,555
4,357
5,061
4,670
4,982
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
77
158
185
290
-6
369
443
450
268
281
644
538
Investing
-126
-133
-3
104
12
139
-112
-87
-771
-53
-437
-209
Financing
-51
-30
-173
-140
-166
-310
-62
-271
187
-108
-433
-266
Net Cash Flow
-100
-4
9
253
-160
198
268
93
-316
119
-226
63
Free Cash Flow
71
144
185
283
-14
360
441
441
227
281
577
425
CFO/OP
62
101
139
149
24
133
152
131
73
75
117
95
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
67
67
80
59
100
68
53
59
61
68
63
63
Inventory Days
3
3
0
0
0
0
0
0
2
6
2
2
Days Payable
90
84
—
—
—
—
—
—
87
89
80
84
Cash Conversion Cycle
-20
-14
80
59
100
68
53
59
-24
-15
-15
-19
Working Capital Days
9
-1
8
-11
24
-4
-18
-17
-34
-47
-21
-16
ROCE %
44%
42%
35%
39%
46%
51%
39%
44%
39%
36%
29%
31%

Shareholding Pattern

As of Jun 2026
Public 31.62%
Promoters 28.17%
DIIs 24.67%
FIIs 9.17%
Others 6.37%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026Jun 2026
Promoters
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
28.17%
FIIs
0.07%
0.07%
0.07%
0.06%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
13.94%
12.41%
12.14%
12.29%
10.76%
9.68%
8.85%
8.79%
8.74%
9.17%
DIIs
12.14%
12.13%
12.51%
13.83%
14.05%
13.93%
12.89%
13.80%
13.87%
13.57%
15.72%
16.89%
19.06%
21.57%
23.37%
24.30%
25.85%
25.55%
26.33%
26.31%
25.55%
24.67%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
36.79%
36.07%
35.21%
35.67%
35.83%
36.26%
37.09%
37.17%
36.84%
35.89%
33.08%
32.82%
31.79%
31.32%
30.25%
29.13%
29.19%
30.51%
30.54%
30.54%
31.28%
31.62%
Others
22.82%
23.57%
24.04%
22.26%
21.95%
21.64%
21.85%
20.87%
21.12%
22.37%
23.03%
22.12%
7.04%
6.53%
6.07%
6.11%
6.03%
6.09%
6.11%
6.19%
6.26%
6.37%
No. of Shareholders
71,283
71,725
86,346
90,253
91,983
99,158
1,07,155
1,10,451
1,08,015
1,12,629
1,12,274
1,37,734
1,44,972
1,65,880
1,65,935
1,65,808
1,72,801
2,05,807
2,08,539
2,02,411
2,01,519
2,01,974

Documents

1
Concall - May 2017 May 2017
2
Concall - Aug 2017 Aug 2017
3
Concall - Nov 2017 Nov 2017
4
Concall - May 2018 May 2018
5
Concall - Aug 2018 Aug 2018

Frequently Asked Questions about Sonata Software Ltd

What does Sonata Software Ltd do?
Sonata Software Ltd is primarily engaged in the business of providing Information Technology (IT) Services and Solutions to its various customers in the United States of America, Europe, Middle East, Australia and India.[1]
Where is Sonata Software Ltd (SONATSOFTW) listed?
Sonata Software Ltd is listed on the Indian stock exchanges. It is listed on NSE: SONATSOFTW and BSE: 532221. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Sonata Software Ltd belong to?
Sonata Software Ltd operates in the Information Technology sector within the IT - Software industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Sonata Software Ltd?
Sonata Software Ltd has a market capitalisation of approximately ₹8886.66 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Sonata Software Ltd?
The Price-to-Earnings (PE) ratio of Sonata Software Ltd is 18.73. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Sonata Software Ltd?
Over the past 52 weeks, Sonata Software Ltd has traded between a low of ₹207.15 and a high of ₹421.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Sonata Software Ltd pay dividends?
Yes, Sonata Software Ltd has a dividend yield of 2.47%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Sonata Software Ltd?
Sonata Software Ltd has a Return on Equity (ROE) of 24.38%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Sonata Software Ltd on Tapetide?
On Tapetide, you can view Sonata Software Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

Sonata Software Ltd is primarily engaged in the business of providing Information Technology (IT) Services and Solutions to its various customers in the United States of America, Europe, Middle East, Australia and India.[1]

Website sonata-software.com
CEO Mr. Samir Dhir
Employees 6,414
Listed 1999-07-28
Face Value ₹ 1
Issued Size 28,04,24,816

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