Sonata Software Ltd (BOM:532221)

Q3 2026 Sonata Software Ltd Earnings Call Transcript

Feb 6, 2026 / 01:00 PM GMT

Release Date Price: ₹306.1 (-1.05%)

Transcript

Key Points

Positve

Sonata Software Ltd (BOM:532221) reported a significant increase in AI-related business, with AI now accounting for 14% of the total order book, up from 10% in the previous quarter.
The company secured two large deals in the BFSI sector, including a multi-year contract with a Fortune 500 firm, indicating strong growth potential in this vertical.
Sonata's North America business has scaled significantly, now representing over 70% of total revenue, reflecting successful client relationship deepening and market expansion.
Operational efficiencies driven by AI adoption and high utilization rates led to a net EBITA accretion of 2.2% quarter on quarter.
The company has maintained a healthy gender diversity ratio of 31% and a low attrition rate of 11%, underscoring its focus on building an inclusive organization.

Negative

Three of Sonata's top 10 clients are experiencing headwinds, impacting the company's growth trajectory in the near term.
The BFSI segment faced a sharp decline due to challenges with a large client, although the impact is now absorbed.
The retail segment is expected to remain under pressure, with a decline anticipated in Q4 due to a large client rampdown.
Despite strong growth in certain areas, the overall international business growth trajectory is expected to remain flat for the next one or two quarters.
The company faces budget constraints and organizational changes with its largest BFSI client, leading to rampdowns and impacting growth.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

SOFT.NS - Sonata Software Ltd
Q3 2026 Sonata Software Ltd Earnings Call
Feb 06, 2026 / 01:00PM GMT

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Presentation
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