Sonata SoftwareBOM:532221 +0.88%89 Net Margin % is 5.15% as of Mar. 2026, which is 19% below its 10-year median of 6.34. GuruFocus rates BOM:532221 with a GF Score™ of 89/100 and a GF Value™ of ₹695.93 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,817 Software companies, Sonata Software ranks better than 56.19% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Sonata Software's Net Income for the
three
months ended in Mar. 2026 was ₹1,305 Mil. Sonata Software's Revenue for the
three
months ended in Mar. 2026 was ₹25,362 Mil. Therefore, Sonata Software's net margin for the quarter that ended in Mar. 2026 was 5.15%.
The historical rank and industry rank for Sonata Software's Net Margin % or its related term are showing as below:
BOM:532221'
s Net Margin % Range Over the Past 10 Years
Min: 3.58 Med: 6.34 Max: 8.43
Current: 4.34
BOM:532221's Net Margin % is ranked better than 56.19% of 2817
companies
in the Software industry
Industry Median: 2.61
vs BOM:532221: 4.34
Sonata Software (BOM:532221) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Sonata Software Net Margin % Related Terms
Sonata Software Net Margin % Historical Data
* Premium members only.
The historical data trend for Sonata Software's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BOM:532221 vs IBM, ACN, FISV: Net Margin % Comparison
For the Information Technology Services subindustry, Sonata Software's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Sonata Software Net Margin % vs Software Industry
For the Software industry and Technology sector, Sonata Software's Net Margin % distribution charts can be found below:
* The bar in red indicates where Sonata Software's Net Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Sonata Software (BOM:532221) has a Net Margin % of 5.15% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Sonata Software and its competitors. This is 19% below median its historical median of 6.34. Over the past decade, Sonata Software's Net Margin % has ranged from 3.58 to 8.43. According to the industry distribution chart, Sonata Software ranks #1234 out of 2817 companies in the Software industry, placing it in the top 43.8%.
Is Sonata Software's Net Margin % too high?
Sonata Software's current Net Margin % of 5.15% is 19% below median its 10-year median of 6.34. Over the past 10 years, this metric has ranged from a low of 3.58 to a high of 8.43. The Software industry median Net Margin % is 2.61. Sonata Software's value of 5.15% is 97.3% above this industry median. Based on the distribution chart, Sonata Software ranks #1234 out of 2817 companies in the Software industry, which is above the industry midpoint. Overall, Sonata Software has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonata Software's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Sonata Software ranks #1234 out of 2817 companies for Net Margin %. This puts Sonata Software in the upper half of its industry. The industry median Net Margin % is 2.61. Sonata Software's value of 5.15% is 97.3% above this benchmark. Historically, Sonata Software's own Net Margin % has ranged from 3.58 to 8.43 over the past decade. While the company's 10-year median is 6.34 vs. the industry median of 2.61, Sonata Software has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.61, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sonata Software's current Net Margin % of 5.15% is 97.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Sonata Software and its competitors. For the Software industry, the median Net Margin % is 2.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sonata Software's current Net Margin % is 5.15%, which is 19% below median its own 10-year median of 6.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonata Software stock overvalued right now?
Based on GuruFocus' analysis, Sonata Software (BOM:532221) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹695.93, compared to a current price of ₹279.90 — trading 59.8% below its estimated fair value. The current Net Margin % is 5.15%, which is 19% below median its 10-year median of 6.34 and 97.3% above the Software industry median of 2.61. Sonata Software's overall GF Score™ is 89/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Sonata Software (BOM:532221), the current Net Margin % is 5.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Sonata Software (BOM:532221) Overvalued in 2026?
Based on GuruFocus' analysis, Sonata Software stock appears to be undervalued.
The current stock price of ₹279.90 is trading 59.8% below its estimated GF Value™ of ₹695.93.
GuruFocus considers Sonata Software to be Significantly Undervalued.
Key valuation signals for BOM:532221:
Net Margin %: 5.15% (19% below median its 10-year median of 6.34)
GF Value™: ₹695.93 vs. price of ₹279.90 (59.8% below fair value)
Industry Position: 97.3% above the Software median (#1234 of 2817)
No single metric tells the full story. See the BOM:532221 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonata Software Ltd is a technology company. The company is engaged in the business of software development, technical services, and product marketing. The company's geographical segments include India and Other than India. It generates maximum revenue from India. The company serves ISVs (Independent Software Vendors); Travel and Tourism; Retail; BFSI; and other industries. Its solution portfolio includes SAP Modernization, Application Management, Managed Cloud Services, Technology Consulting, and other technology-related products and services.
89GF Score
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