Q4 2026 Sonata Software Ltd Earnings Call Transcript
Key Points
- Sonata Software Ltd (BOM:532221) reported a significant AI-led order book of $16.9 million in Q4 '26, contributing to 18% of the overall order book.
- The company secured two large deals in Q4 FY26, with a total of eight large deals for the fiscal year, indicating strong deal momentum.
- EBITDA before other income and ForEx improved to 20.2% in Q4 '26, up 70 basis points quarter-on-quarter, driven by operational improvements.
- The company added seven new customers in Q4 '26, totaling 23 new customers for FY26, showcasing successful client acquisition efforts.
- Sonata Software Ltd (BOM:532221) maintained a strong cash position with a closing cash balance of INR606 crores, reflecting robust cash generation.
- International services dollar revenue experienced a year-on-year decline of 2.1%, indicating challenges in maintaining growth.
- The domestic business faced a revenue degrowth of 25% quarter-on-quarter in Q4 '26, impacted by direct billing from a large client.
- The company's utilization rate reached a high of 91.8%, suggesting limited room for further efficiency gains without additional investments.
- BFSI vertical faced significant challenges, with a notable decline in FY26, highlighting sector-specific pressures.
- The large deal pipeline showed a sharp drop-off, raising concerns about future deal flow and growth prospects.
Hello, everyone. My name is Inba, and I'll be moderating today's session. Welcome to the Sonata Software Limited Analyst and Investor Conference Call for the fourth-quarter and FY2026 ended March 31, 2026. We have with us today on the call, Mr. Srikar Reddy, Executive Vice Chairman of the company; Mr. Rajsekhar Datta Roy, CEO of International Services; Mr. Sujit Mohanty, CEO of Domestic Business; Mr. Jagannathan CN, Chief Financial Officer.
We also have our extended leadership team on the call. (Operator Instructions) Please note that this call is being recorded. During the call, please note that the management may make certain forward-looking statements that involve risk, assumptions and are based on information currently available to the management.
Sonata does not undertake any obligation to update any such forward-looking statements that may be made in course of this call. We advise participants to exercise discretion while making any investment decisions. We will begin with the opening remarks from the Executive Vice Chairman, followed by a business overview and financial highlights
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