Sonata Software Ltd logo

Sonata Software Ltd

SONATSOFTW NSE

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]

AI Verdict: HOLD Confidence: 5%

Sonata Software offers strong ROE history (28-32% over 10 years) and healthy dividend payout at 52%, but the stock has declined 35% in the past year and trades at a PE of 16.2x with only 5% TTM sales growth, suggesting the turnaround needs confirmation before committing fresh capital.

Key Fundamentals

MicrocapComputer Software & ConsultingInformation Technology
Market Cap
₹8,069 Cr
Volatility
Moderate
P/E Ratio
17.16
EBITDA
₹613 Cr
Return on Equity
21.94%
Debt to Equity
0.41
Book Value
₹67.93
EPS
₹14.74
52W High
₹452.8
52W Low
₹207.15

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 52.0%
  • Company's median sales growth is 19.3% of last 10 years

Weaknesses

1
  • Promoter holding is low: 28.2%

Growth Rate

Revenue Growth
4.62% ↗
Net Income Growth
3.39% ↘
Cash Flow Change
129.67% ↗
ROE
13.45% ↘
ROCE
13.36% ↘
EBITDA Margin (Avg.)
-24.09% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 20d ago
HOLD
Risk high

Sonata Software offers strong ROE history (28-32% over 10 years) and healthy dividend payout at 52%, but the stock has declined 35% in the past year and trades at a PE of 16.2x with only 5% TTM sales growth, suggesting the turnaround needs confirmation before committing fresh capital.

Bull Case 7
  • Consistent ROE track record with 3-year average of 29% and 10-year average of 32%, indicating efficient capital allocation
  • Healthy dividend payout ratio of 52% with current yield of 1.4%, providing income support during downturn
  • 10-year compounded sales CAGR of 19% demonstrates long-term business scalability
  • PE ratio of 16.2x is attractive for an IT company with historical ROE above 28%, suggesting valuation compression may offer entry opportunity
  • 50% of analysts rate it a Buy (4 out of 8 analysts), indicating majority still see upside potential
  • 5-year compounded profit growth of 16% shows the company can deliver earnings growth over medium-term cycles
  • TTM profit growth of 20% indicates recent earnings recovery despite muted topline growth
Bear Case 8
  • Stock has declined 35% in the past 1 year, significantly underperforming the broader IT sector and Nifty
  • 3-year stock CAGR of -18% indicates sustained value destruction for medium-term investors
  • TTM sales growth of only 5% marks a sharp deceleration from 3-year CAGR of 13% and 10-year CAGR of 19%
  • Promoter holding is low at 28.2%, raising corporate governance concerns and vulnerability to hostile actions
  • 3-year compounded profit growth of only 4% suggests earnings stagnation in recent years despite higher revenue base
  • 5-year stock CAGR of 0% means the stock has generated zero capital appreciation over half a decade
  • 12.5% of analysts (1 out of 8) have a Sell rating, and 37.5% recommend Hold, indicating limited conviction among the Street
  • Market cap of Rs 7,392 crore places it in midcap territory with higher volatility and liquidity risk compared to large-cap IT peers

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

AI News Digest

Anthropic anthropic claude-opus-4.6 20d ago
Positives 4
  • Q4 PAT up 25% QoQ May 7

    Consolidated PAT rose 25% QoQ and 21.4% YoY to ₹130.5 crores in Q4 FY26. FY26 full-year PAT at ₹464.4 crores, up 9.3% YoY.

  • AI order book at $49M May 19

    AI-led order book reached $49M for FY26 with cautious optimism on FY27 growth driven by TMT, BFSI, and HLS verticals.

  • 415% dividend recommended May 7

    Board recommends final dividend of ₹4.15 per share (415% on face value) for FY26.

  • New CEO appointed May 9

    Rajsekhar Datta Roy appointed CEO effective May 09, 2026. Q4 includes ₹9,695 lakhs exceptional credit loss allowance.

Neutral 3
  • Shares transferred to IEPF Jun 3

    Unclaimed equity shares worth ₹26,65,473 for FY 2018-19 transferred to IEPF as per regulatory requirement.

  • Investor conference attendance May 25

    Sonata Software to meet analysts at 360 ONE Capital Annual Investor Conference in Mumbai on May 29, 2026. No UPSI to be shared.

  • Zero promoter encumbrance May 19

    Promoters including Raheja family and Globus Stores declared zero encumbrance on shares as of March 31, 2026 under SEBI Regulation 31(4).

TL;DR: Sonata Software delivered solid Q4 FY26 results with 25% QoQ PAT growth and a growing AI-led order book of $49M. The generous 415% dividend and clean promoter holding signal confidence. No material headwinds emerged, though the ₹96.95 crore credit loss allowance and CEO transition bear watching. The trend is improving with AI-driven momentum heading into FY27.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
1,914
2,016
1,913
2,493
2,192
2,527
2,170
2,843
2,617
2,965
2,119
3,081
2,536
Expenses
1,762
1,837
1,715
2,286
2,047
2,351
1,993
2,679
2,445
2,806
1,947
2,880
2,328
Operating Profit
152
178
197
208
144
176
177
164
173
160
173
200
209
OPM %
8%
9%
10%
8%
7%
7%
8%
6%
7%
5%
8%
6%
8%
Other Income
25
28
23
-155
55
19
19
21
11
24
31
-20
6
Interest
7
21
21
22
22
20
19
16
10
5
14
13
19
Depreciation
19
31
33
34
34
33
33
32
23
26
26
27
25
PBT
150
154
167
-3
144
142
144
137
151
153
164
141
170
Tax %
24%
22%
25%
1389%
23%
25%
26%
23%
29%
28%
27%
26%
23%
Net Profit
114
120
124
-46
110
106
106
105
108
109
120
104
130
EPS in Rs
4.06
4.28
4.43
-1.65
3.94
3.77
3.8
3.74
3.83
3.9
4.29
3.72
4.65
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
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
Expenses
1,514
1,749
2,191
2,223
2,625
3,370
3,848
5,090
6,845
7,885
9,468
9,960
Operating Profit
168
192
180
231
336
373
380
464
604
728
690
741
OPM %
10%
10%
8%
9%
11%
10%
9%
8%
8%
8%
7%
7%
Other Income
23
47
67
47
30
58
28
102
71
-50
71
42
Interest
3
8
9
5
3
15
15
18
19
85
65
51
Depreciation
6
6
11
12
13
37
40
47
59
132
121
104
PBT
182
225
226
260
349
379
352
500
597
461
574
627
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
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
Div. Payout %
55%
60%
60%
57%
53%
76%
60%
58%
48%
103%
29%
25%
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
1,301
2,466
2,889
2,448
2,464
Total Liabilities
808
992
1,198
1,232
1,528
1,616
1,947
2,559
4,357
5,061
4,670
5,091
Fixed Assets
23
120
118
114
199
298
324
427
1,732
1,671
1,603
1,898
CWIP
0
0
0
0
1
0
0
0
1
0
26
0
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
1,974
2,404
3,145
2,792
3,007
Total Assets
808
992
1,198
1,232
1,528
1,616
1,947
2,559
4,357
5,061
4,670
5,091
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
-217
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
54
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
61
61
68
63
63
Inventory Days
3
3
0
0
0
0
0
0
2
6
2
2
Days Payable
90
84
—
—
—
—
—
96
87
89
80
84
Cash Conversion Cycle
-20
-14
80
59
100
68
53
-35
-24
-15
-15
-19
Working Capital Days
9
-1
8
-11
24
-4
-18
-17
-34
-47
-21
-10
ROCE %
44%
42%
35%
39%
46%
51%
39%
44%
39%
36%
29%
31%

Shareholding Pattern

As of Mar 2026
Public 31.28%
Promoters 28.17%
DIIs 25.55%
FIIs 8.74%
Others 6.26%
Total 100.00%
  Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 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%
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%
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%
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%
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%
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%
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

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 ₹8069.22 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 17.16. 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 ₹452.8. 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 1.29%. 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 21.94%. 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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