Sonata Software Ltd.

NSE: SONATSOFTW · Computers - Software & Consulting

52W Range₹207 ₹422

Snapshot

Unlock Sonata Software Ltd.'s vital signs

Growth · Profitability · Valuation · Strength · Conviction

Company Overview

Business

Sonata Software Limited is an IT services and consulting firm that provides software development, application management, and cloud migration solutions. The company serves diverse industries including retail, manufacturing, travel, and distribution, while also acting as a reseller for major software product licenses.

Business Model

The company generates revenue through a combination of IT consulting, managed services, and the resale of third-party software licenses from partners like Microsoft, IBM, and Oracle. It leverages proprietary platforms such as Rezopia and Kartopia to provide specialised digital transformation solutions to its enterprise clients.

Growth Outlook

Growth is driven by the increasing demand for cloud enablement, digital platform modernisation, and enterprise development automation. The company continues to strengthen its strategic alliances with global technology leaders to expand its service footprint.

Key Risks

  • Client Concentration. Significant reliance on a limited number of large enterprise clients and software partners could impact revenue if relationships are terminated.
  • Currency Volatility. As a global service provider with significant operations in the US and Europe, the company is exposed to fluctuations in foreign exchange rates.
  • Technological Obsolescence. Failure to keep pace with rapid advancements in cloud, AI, and digital transformation technologies may lead to a loss of competitive advantage.
  • Talent Retention. The highly competitive IT services market poses a risk to the company's ability to attract and retain skilled technical personnel.

Price

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Key Metrics

REVENUE

₹10,701 Cr

TTM · consolidated

+5.4%YoY

NET PROFIT

₹464 Cr

TTM · consolidated

+9.4%YoY

EPS

₹16.74

TTM · consolidated

+9.4%YoY

RETURN ON EQUITY

26.5%

TTM · consolidated

-2.2 ppYoY

RETURN ON CAPITAL EMPLOYED

30.8%

TTM · consolidated

+0.0 ppYoY

P/E

18.4x

Q4 FY26 · consolidated

18.4 vs 18.8x5Y avg

EV/EBITDA

10.3x

Q4 FY26 · consolidated

10.3 vs 19.7x5Y avg

EBITDA MARGIN

7.9%

TTM · consolidated

+0.4 ppYoY

NET PROFIT MARGIN

5.1%

Q4 FY26 · consolidated

+1.0 ppYoY

DEBT TO EQUITY

0.3x

Q4 FY26 · consolidated

+0.04xYoY

Peers · Computers - Software & Consulting

CompanyMkt Cap (Cr)P/EEV/EBITDARev Gr YoYEBITDA MgnROEROCE1Y Return
Sonata Software Ltd.SONATSOFTW
6,51818.4110.325.4%7.9%26.5%30.8%-29.3%
Newgen Software Technologies Ltd.NEWGEN
6,21025.3415.965.9%30.0%19.0%23.3%-50.3%
Happiest Minds Technologies Ltd.HAPPSTMNDS
6,02327.0114.3812.3%21.1%13.3%17.6%-39.5%
RateGain Travel Technologies LimitedRATEGAIN
5,67659.0030.7269.4%21.9%11.0%14.1%+107.3%
Latent View Analytics Ltd.LATENTVIEW
5,46031.8419.7425.0%29.4%12.9%15.9%-29.1%
Mastek LimitedMASTEK
4,44913.558.007.0%17.6%15.6%18.3%-30.9%

As of Q4 FY26

Financials