Sonata Software reported a 10.6% year-on-year increase in consolidated revenue for the first quarter of FY27, supported by double-digit growth across its international IT services and domestic businesses, while highlighting continued momentum in its AI-led strategy.
The company posted consolidated revenue of ₹3,279.1 crore for the quarter ended June 30, 2026, while EBITDA (before other income, forex and exceptional items) rose 12.1% year-on-year to ₹179 crore. Consolidated profit after tax (PAT) stood at ₹108.1 crore, compared with ₹130.5 crore in the previous quarter, reflecting the impact of forex losses during the period.
Sonata said it continued to strengthen its AI-led business, with its AI-driven sales pipeline increasing 21% and AI-led order book growing 27% quarter-on-quarter.
Commenting on the results, Rajsekhar Datta Roy, CEO of Sonata Software, said, “In this quarter, we have taken foundational steps for AI-led growth across our offerings, GTM, partnerships, delivery and talent. The progress made and market response have been encouraging. Our AI-led pipeline has improved by 21%, while AI-led order books have increased by 27% QoQ, reinforcing our conviction around our strategy. We will continue to execute with operational rigour while focusing on growth.”
International business grows 11%
Sonata’s international IT services business reported revenue of ₹777.2 crore, representing 11% year-on-year growth in rupee terms. In dollar terms, revenue stood at US$82 million, growing 0.2% year-on-year, while constant currency growth was 2.1%.
International EBITDA increased 3.2% to ₹119.6 crore. The business added seven new customers during the quarter, while Days Sales Outstanding (DSO) improved to 60 days, compared with 62 days a year ago.
Domestic business delivers double-digit growth
The company’s domestic products and services business recorded revenue of ₹2,505.6 crore, up 10.2% year-on-year.
Gross contribution increased 14.5% to ₹78.5 crore, while EBITDA grew 34.9% to ₹59.3 crore, supported by continued growth in its cloud business and contract renewals.
Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, said, “During this quarter we continued to make progress and renewed multiple existing client contracts with enhanced contract values, despite industry headwinds in some of the sectors. Our consistent focus on cloud business enabled us to deliver better gross contribution YoY and to acquire new customers.”
AI strategy remains central
Sonata said it continues to position itself as an AI-first modernisation engineering company, with over 90% of its workforce trained in AI. The company is expanding enterprise AI adoption through its proprietary Harmoni. AI platform, which includes AI governance capabilities, reusable AI agents and managed services for agentic workflows.
The company also strengthened its ecosystem through partnerships with Microsoft, AWS, Salesforce and Snowflake. Sonata remains among Microsoft’s elite global partners through its Microsoft Inner Circle membership and is also among the first companies to receive the Microsoft Frontier Partner Badge.
The Board declared an interim dividend of 125% per equity share for the financial year. Sonata ended the quarter with gross cash and cash equivalents of ₹567 crore and net cash of ₹67 crore.