Tata Consultancy Services Ltd.
NSE: TCS
Technology · Information Technology Services
₹2,502.60 last close on 30 Oct 2026 +0.99%
Research updated
Sonata Software Ltd.
NSE: SONATSOFTWTechnologyInformation Technology Services
- Last close
- ₹223.70
- Day change
- −₹6.25 (−2.72%)vs
- Market cap
- ₹6,865 crIndian rupees
- Research updated
- 1 report
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About Sonata Software
Sonata Software Ltd. is a global information technology services company headquartered in Bangalore, India. The primary function of Sonata is to provide IT consulting, software development, and product engineering services to a wide array of industries. Its offerings include digital transformation solutions, platform-based services, and enterprise software solutions tailored for sectors such as retail, manufacturing, travel, and utilities. The company leverages technologies like cloud and data analytics to enhance its clients' business processes and efficiencies. Sonata Software has established itself as a significant player in the IT services market with a strong emphasis on customer-centric innovation and strategic global partnerships. These collaborations help clients achieve scaling, optimization, and modernization objectives. The company's impact is notable in the financial markets, where it provides dedicated solutions for banking and financial services. By focusing on digital transformation strategies, Sonata Software Ltd. plays a crucial role in helping organizations transition to the digital economy, underscoring its importance in the global technology landscape.
- Sector
- Technology
- Industry
- Information Technology Services
- Listing
- NSE: SONATSOFTW
- Next results
- Chief executive
- Mr. Sujit Mohanty MA & PGDM
- Employees
- 5,948
- Headquarters
- Bengaluru, India
- ISIN
- INE269A01021
- Website
- sonata-software.com
Public research · Report of
Business model & financial foundation
Sonata Software (NSE: SONATSOFTW), IT services and technology licence distribution: revenue of ₹10,701 crore in FY26 (+5.4% on FY25), an EBITDA margin of 6.9%, net profit of ₹464.4 crore and net debt of ₹12.6 crore.
- Revenue, FY26 (₹ crore)
- 10,701
- consolidated
- Revenue growth, FY26
- +5.4%
- on FY25
- EBITDA margin, FY26
- 6.9%
- EBITDA on requested cost-stack formula / revenue
- Net profit, FY26 (₹ crore)
- 464.4
- to owners
- Return on equity, FY26
- 25.7%
- on average equity
- Net debt, FY26 (₹ crore)
- 12.6
- Borrowings less cash and current investments
- Market capitalisation (₹ crore)
- 7,664
- at the close of 18 Oct 2026
Company profile
Sonata combines international software development and consulting with domestic resale of technology licences. Microsoft Dynamics, Azure, data and AI alliances support services demand, while domestic gross sales have low margins and are not a proxy for services growth.
| Item | Value |
|---|---|
| Legal name | Sonata Software Limited |
| Exchange and ticker | NSE: SONATSOFTW; BSE: 532221 |
| ISIN | INE269A01021 |
| Sector | Information Technology |
| Industry | IT services and technology licence distribution |
| Headquarters | Bengaluru, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | B S R & Co. LLP (since 2022) |
| Market capitalisation | ₹7,664 crore (18 Oct 2026) |
| Shares outstanding | 27.74 crore shares (FY26) |
| Price | ₹248.0 (close, 18 Oct 2026) |
| 52-week range | ₹207.1 - ₹400.5 (to 18 Oct 2026) |
| Website | https://www.sonata-software.com |
Corporate structure and shareholding
| Entity | Holding | Business |
|---|---|---|
| Sonata Information Technology Limited | 100% | Domestic technology licence resale and consulting |
| Sonata Software North America Inc. | 100% | North American software development and consulting |
| Sonata Software Solutions North America Inc. | 100% | Former Quant Systems; US services |
| Encore IT Services Solutions Private Limited | 100% | IT services |
| Sonata Software (Qatar) LLC | 49% | Regional IT services; consolidated subsidiary |
FY26 annual report lists 22 subsidiaries. Material subsidiaries shown; remaining entities are regional delivery/sales companies.
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 28.17% | 28.17% | 28.17% | 28.17% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | 0.00% |
| Foreign institutions | 8.79% | 8.74% | 9.17% | 8.84% |
| Domestic institutions | 26.30% | 25.55% | 24.68% | 24.88% |
| of which mutual funds | 25.62% | 24.82% | 24.02% | |
| Other | 36.73% | 37.53% | 37.99% | 38.13% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
Sonata has two economic engines: international consulting/software delivery and domestic OEM/cloud licence resale. International FY26 salesUSD328.4m versusFY25USD335.5m; domestic gross licence turnoverFY267772.1cr is not comparable to service fees. Legal parent plus22subsidiaries; consolidated basis essential. Microsoft alliance does not establish Microsoft as the largest international client. Rajsekhar Datta Roy becameCEO9May2026, not verifiedMD.
| Segment | revenue, FY26 (₹ crore) | Share | ebitda, FY26 (₹ crore) | Share | gross contribution, FY26 (₹ crore) | Share |
|---|---|---|---|---|---|---|
| International IT Services | 2,948 | 27.5% | 543.7 | 73.3% | ||
| Domestic Products and Services / Domestic Business | 7,772 | 72.5% | 197.9 | 26.7% | 288.7 | 100.0% |
Segments as the company reports them (consolidated); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| Birlasoft (BSOFT) | Mid-tier enterprise applications and cloud services |
| Zensar Technologies (ZENSARTECH) | Mid-tier digital engineering and applications |
| Mastek (MASTEK) | Cloud/ERP specialist, similar scale |
| Cyient (CYIENT) | Mid-tier services; ER&D exposure limits comparability |
| Coforge (COFORGE) | Mid-tier services, large deal execution benchmark |
| Happiest Minds Technologies (HAPPSTMNDS) | Digital and cloud services smaller scale benchmark |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 5,552 | 7,447 | 8,613 | 10,157 | 10,701 |
| Cost of revenue (vendor classification) * | 4,712 | 6,333 | 7,084 | 8,597 | 9,270 |
| Other operating costs (vendor classification) * | 264.1 | 437.8 | 645.4 | 757.1 | 535.6 |
| EBITDA (vendor classification) * | 577.7 | 662.5 | 847.0 | 764.0 | 929.1 |
| EBIT * | 516.6 | 614.7 | 545.4 | 637.6 | 679.8 |
| Finance costs | 16.2 | 17.4 | 85.0 | 65.3 | 51.4 |
| Profit before tax | 500.4 | 597.3 | 461.4 | 573.7 | 627.3 |
| Total tax expense | 123.9 | 145.4 | 152.9 | 149.0 | 162.9 |
| Profit after tax | 376.4 | 451.9 | 308.5 | 424.7 | 464.4 |
| Diluted EPS (₹) | 13.58 | 16.29 | 11.10 | 15.28 | 16.74 |
| Purchases of traded goods plus inventory change | 5,820 | 7,082 | 7,831 | ||
| Employee benefits expense | 1,335 | 1,598 | 1,530 | ||
| Other expenses | 731.4 | 788.5 | 599.4 | ||
| EBITDA on requested cost-stack formula | 727.4 | 689.3 | 741.3 | ||
| Other income | 125.6 | 71.2 | 104.5 | ||
| Depreciation and amortisation | 131.9 | 121.5 | 104.3 | ||
| Exceptional items (gain positive; charge negative) | -174.7 | 0.00 | -62.9 | ||
| Non-controlling share of profit | 0.00 | 0.00 | 0.00 | ||
| Share of associates profit | 0.00 | 0.00 | 0.00 | ||
| Profit attributable to owners | 308.5 | 424.7 | 464.4 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity (financial highlights net worth) | 1,099 | 1,301 | 1,406 | 1,706 | 1,905 |
| Borrowings excluding lease liabilities | 159.4 | 590.5 | 674.3 | 441.6 | 568.2 |
| Cash and cash equivalents | 733.7 | 417.4 | 536.0 | 310.0 | 372.5 |
| Trade receivables | 895.1 | 1,147 | 1,605 | 1,741 | 1,849 |
| Inventories * | 2.93 | 28.8 | 98.0 | 47.2 | 36.8 |
| Trade payables * | 1,055 | 1,295 | 1,416 | 1,557 | 1,800 |
| Net property, plant and equipment * | 123.3 | 130.8 | 132.7 | 103.6 | 204.9 |
| Total assets * | 2,559 | 4,357 | 5,149 | 4,755 | 5,091 |
| Capital work in progress * | 0.01 | 0.82 | 0.00 | 0.00 | |
| Current investments | 232.1 | 245.1 | 183.1 | ||
| Borrowings less cash and current investments | -93.8 | -113.5 | 12.6 | ||
| Current plus non-current lease liabilities | 74.5 | 154.8 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Net cash from operating activities after taxes | 140.5 | 157.6 | 280.5 | 644.3 | 538.0 |
| Free cash flow (vendor definition) * | 440.5 | 227.3 | 255.2 | 575.8 | 424.4 |
| Dividends paid (the provider's sign: an outflow is negative) * | -186.9 | -232.4 | -218.9 | -122.6 | -223.2 |
| Cash acquisition PPE/intangibles/CWIP (positive outflows) | 9.64 | 41.1 | 25.4 | 68.5 | 113.6 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Shares outstanding * | 27.71 | 27.80 | 27.75 | 27.76 | 27.74 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 2,170 | 2,843 | 2,617 | 2,965 | 2,119 | 3,081 | 2,536 | 3,279 |
| Cost of revenue (vendor classification) * | 1,804 | 2,437 | 2,200 | 2,627 | 1,801 | 2,772 | 2,161 | 2,946 |
| Other operating costs (vendor classification) * | 188.8 | 242.6 | -504.0 | 178.9 | 145.6 | 108.6 | 166.2 | 162.7 |
| EBITDA (vendor classification) * | 196.4 | 185.1 | 187.4 | 183.9 | 204.1 | 211.6 | 246.3 | 177.5 |
| EBIT * | 163.5 | 152.8 | 159.5 | 157.8 | 177.8 | 153.8 | 189.3 | 149.1 |
| Finance costs | 19.2 | 16.0 | 10.1 | 5.08 | 14.2 | 13.0 | 19.1 | 12.0 |
| Profit before tax | 144.3 | 136.8 | 150.8 | 152.7 | 163.6 | 140.8 | 170.2 | 137.1 |
| Total tax expense | 37.9 | 31.8 | 43.2 | 43.4 | 43.4 | 36.4 | 39.7 | 29.0 |
| Profit after tax | 106.5 | 105.0 | 107.5 | 109.3 | 120.2 | 104.4 | 130.5 | 108.1 |
| Diluted EPS (₹) | 3.83 | 3.78 | 3.87 | 3.94 | 4.33 | 3.76 | 4.71 | 3.91 |
| Purchases of traded goods plus inventory change | 1,399 | 2,032 | 1,863 | 2,209 | 1,378 | 2,401 | 1,843 | 2,594 |
| Employee benefits expense | 404.8 | 404.3 | 419.4 | 418.0 | 422.5 | 371.2 | 318.3 | 351.4 |
| Other expenses | 188.8 | 242.6 | 162.0 | 178.9 | 145.6 | 108.6 | 166.2 | 162.7 |
| EBITDA on requested cost-stack formula | 177.3 | 163.6 | 172.7 | 159.7 | 172.7 | 200.2 | 208.7 | 170.8 |
| Other income | 19.2 | 21.5 | 11.2 | 24.2 | 31.4 | 11.4 | 37.6 | 6.77 |
| Depreciation and amortisation | 32.9 | 32.3 | 23.0 | 26.1 | 26.3 | 26.5 | 25.4 | 28.4 |
| Exceptional items (gain positive; charge negative) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | -31.3 | -31.6 | 0.00 |
| Non-controlling share of profit | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Share of associates profit | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit attributable to owners | 106.5 | 105.0 | 107.5 | 109.3 | 120.2 | 104.4 | 130.5 | 108.1 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 31.3% | 34.1% | 15.7% | 17.9% | 5.4% |
| EBITDA margin | 8.4% | 6.8% | 6.9% | ||
| Net margin | 3.6% | 4.2% | 4.3% | ||
| Return on equity | 22.8% | 27.3% | 25.7% | ||
| Return on capital employed | 44.0% | 39.0% | 27.5% | 30.2% | 29.4% |
| Return on assets | 6.5% | 8.6% | 9.4% | ||
| Net debt (₹ crore) | -93.8 | -113.5 | 12.6 | ||
| Net debt / EBITDA | -0.13x | -0.16x | 0.02x | ||
| Interest cover | 31.9x | 35.4x | 6.42x | 9.77x | 13.2x |
| Asset turnover | 2.46x | 2.15x | 1.81x | 2.05x | 2.17x |
| Receivable days | 59 | 56 | 68 | 63 | 63 |
| Inventory days (on revenue) | 0 | 1 | 4 | 2 | 1 |
| Payable days (on revenue) | 69 | 63 | 60 | 56 | 61 |
| Cash conversion | 0.91x | 1.52x | 1.16x | ||
| Capex intensity | 0.2% | 0.6% | 0.3% | 0.7% | 1.1% |
| Free cash flow (₹ crore) | 130.9 | 116.5 | 255.2 | 575.8 | 424.4 |
| Dividend payout | 71.0% | 28.9% | 48.1% | ||
| EPS, diluted (₹) | 13.58 | 16.29 | 11.10 | 15.28 | 16.74 |
| Book value per share (₹) | 39.67 | 46.79 | 50.68 | 61.45 | 68.66 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA on requested cost-stack formula / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Net debt (₹ crore): Borrowings less cash and current investments; negative is net cash.
- Net debt / EBITDA: net debt / EBITDA on requested cost-stack formula.
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 18 Oct 2026); market data at the close of 18 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Sonata Software includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
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