Q1 2027 Sonata Software Ltd Earnings Call Transcript
Key Points
- AI-led pipeline improved 21% quarter-over-quarter, with AI-led order wins up 27%.
- Launched enterprise-grade agentic AI service delivery platform 'Workbench' to enhance software delivery and developer productivity.
- Appointed a Chief AI Officer and strengthened leadership in key accounts and regions to drive AI-native transformation.
- Domestic business returned to growth, with revenue up 42.4% QoQ and gross contribution up 14.5% YoY.
- Order bookings improved to a book-to-bill ratio of 1.18x, with AI order book contributing 18.2% of total order book.
- International services revenue growth was flat at 0.1% QoQ constant currency, reflecting mixed market conditions.
- EBITDA margin for international services declined to 13.4% from 20.2% QoQ due to one-time costs, utilization drop, and forex losses.
- Utilization dropped to 88.5% from 91.8% due to delays in a large deal ramp-up and AI capability incubation.
- Consolidated PAT declined 17.1% QoQ, impacted by forex losses of INR35.4 crores.
- Top 10 client revenue share declined to 41% due to growth in the 11-20 client bucket, indicating concentration risk.
Hello everyone, my name is Inba. I will be moderating today's session. Welcome to the Sonata Software Limited analyst and investor conference call for the first quarter of fiscal year 2027 ended June 30, 2026.
Please note all participants will be in the listen-only mode, and this call is being recorded. We have with us today on the call Mr. Rajshekar Datta Roy, CEO of International Services. Mr. Sujit Mohanty, CEO of Domestic Business, and Mr. Jagannathan CN, Chief Financial Officer. We also have our extended leadership on the call today.
Please note that there will be an opportunity for all the participants to ask questions after the management's opening remarks. During the call, please note that the management may make certain forward-looking statements that involve risks 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 the course of this call. We advise participants to exercise discretion while making any investment decisions.
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