Sonata Software Posts 15% Revenue Growth in Q2 FY27

Sonata Software reported a consolidated revenue of ₹2,445.2 crore for the second quarter of fiscal year 2027, marking a 15.4 percent increase compared to the same period last year. Despite this year-on-year growth, the company experienced a sequential revenue decline of 25.4 percent from the previous quarter.

The firm’s net profit saw a quarter-on-quarter rise of 7.7 percent, reaching ₹116.4 crore from ₹108.1 crore in Q1 FY27. However, it fell marginally by 3.2 percent when compared to Q2 FY26. Earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding other income, foreign exchange, and exceptional items, edged up by 3.9 percent to ₹179.5 crore.

Sonata's International IT-services segment generated ₹797.9 crore in revenue, reflecting a 9.3 percent increase year-on-year and a 2.7 percent rise quarter-on-quarter. When adjusted for constant currency (CC) fluctuations, the segment's revenue grew by 1.3 percent year-on-year and 1.2 percent sequentially. This division posted an EBITDA margin of 15.5 percent. However, net profit within this segment decreased 11.4 percent compared to the same quarter last year, settling at ₹69.1 crore, although it improved 11.1 percent sequentially.

The Domestic Products and Services unit recorded ₹1,655.6 crore in revenue, up 19 percent year-on-year. Sequentially, this segment saw a revenue drop of 33.9 percent. Net profit for the domestic business rose 12.2 percent year-on-year and 3.1 percent quarter-on-quarter, totaling ₹47.3 crore.

Employee numbers, including the domestic operations, stood at 6,214 at the end of the quarter. This figure is lower than 6,293 in the previous quarter and down from 6,629 a year earlier. Attrition rates showed improvement, decreasing to 10 percent from 13 percent in Q1 FY27 and 14 percent in Q2 FY26.

Rajsekhar Datta Roy, CEO of Sonata Software, highlighted the company’s emphasis on AI-driven engineering and market strategies as key factors contributing to steady revenue growth. He noted, "Our focused execution around AI-led engineering and go-to-market has led to steady progress this quarter, with early signs of revenue growth of 2.70 percent quarter-on-quarter. We continue to significantly enhance our flagship Harmoni.AI suite of solutions, strengthen differentiated capabilities and add AI-first partnerships. Our AI-led OB now accounts for 25 percent of total OB. At the same time, our continued focus on operational excellence delivered PAT growth of 11.1 percent quarter-on-quarter."

Sujit Mohanty, Managing Director and CEO of Sonata Information Technology Ltd, expressed satisfaction with the domestic segment's performance. He mentioned, "We are pleased to deliver another quarter of healthy performance in our domestic business. Aligned with our three-pillar strategy, we expanded our customer base through new corporate customer wins, successfully renewed all large multi-year enterprise contracts across our software and hyperscaler businesses, and increased business with non-hyperscaler OEMs through focused go-to-market execution."

Mohanty also underscored the company’s strengthened alliance with AWS, achieved through a five-year strategic collaboration agreement aimed at accelerating cloud adoption and modernization for enterprises in India. He added, "Looking ahead, we remain focused on expansion and growth from cloud-managed services and AI-led transformation engagements."

Sonata Software operates in the IT services space, offering software products and services to global clients, including initiatives focused on artificial intelligence and cloud computing. The company’s recent results highlight its efforts to expand in both international and domestic markets, driven by technology innovation and strategic partnerships. The IT industry continues to evolve with increasing demand for AI integration and cloud solutions, areas where Sonata is actively investing.