India · Delayed Price · Currency is INR Sonata Software Earnings Call Transcripts
Fiscal Year 2026
-
Q3 FY26 saw resilient performance with 45% QoQ revenue growth, 21% YoY PAT growth, and EBITDA at 19.5%, despite headwinds from three large clients. AI-led order book rose to 14%, and two large BFSI deals were secured, with margins expected to remain strong.
-
Q2 FY 2026 saw resilient performance with strong AI-led deal wins, EBITDA margin expansion to 17.3%, and PAT up 10% QoQ, despite headwinds from large BFSI and TMT clients. Healthcare and BFSI now contribute 33% of revenue, and the company expects growth to resume from Q4.
-
Q1 FY26 saw modest international growth, strong domestic gains, and robust deal wins, especially in AI and TMT, but headwinds persist in retail/manufacturing and with major BFSI clients. Margins improved slightly, and management targets top-quartile growth and higher margins by year-end.
Fiscal Year 2025
-
Q4 FY25 saw revenue decline due to large client budget cuts and seasonal softness, but EBITDA margin improved sequentially. Healthcare and BFSI are driving growth, with a strong AI pipeline and large deal wins expected to ramp up in FY26.
-
Q3 FY25 delivered strong growth in international services and domestic business, but margins were impacted by a large high-tech client ramp-down and one-time costs. Management expects a 2.5%-3.5% revenue decline in Q4, with margins set to recover as one-time costs subside.
-
Q1 FY25 saw a return to growth with strong deal wins in healthcare, manufacturing, and BFSI, though margins remain under pressure due to upfront investments and deal delays. The $1.5B revenue target is delayed by 2-4 quarters, but H2 is expected to see stronger growth, led by high tech and banking.