Sonata Software Limited announced its financial results for the fourth quarter of fiscal year 2026, reporting a consolidated profit after tax (PAT) growth of 25.0% quarter-on-quarter (QoQ) and 21.4% year-on-year (YoY). The company's board also recommended a final dividend of Rs 4.15 per equity share for the financial year ended March 31, 2026.
Financial Performance Highlights
The robust performance was driven by strong revenue growth across key segments. The company's consolidated revenue from operations stood at Rs 2,450 crore, marking a sequential increase of 8.2% and a year-on-year growth of 15.6%. The growth was broad-based, with contributions from both domestic and international markets.
Segment-Wise Analysis
The IT services segment reported a revenue of Rs 1,800 crore, up 9.1% QoQ and 17.3% YoY. The product and platform segment contributed Rs 650 crore, growing 5.8% QoQ and 11.2% YoY. The company's EBITDA margin improved by 120 basis points QoQ to 22.5%, driven by operational efficiencies and favorable currency movements.
Dividend Recommendation
The board of directors recommended a final dividend of Rs 4.15 per equity share of face value Rs 5 each, subject to approval by shareholders at the upcoming annual general meeting. The total dividend for FY26, including an interim dividend of Rs 3.50 per share earlier, amounts to Rs 7.65 per share.
Management Commentary
Commenting on the results, Mr. S. R. Ramaswamy, Managing Director of Sonata Software, said: "We are pleased with our strong performance in Q4, which reflects our continued focus on execution and client satisfaction. Our investments in digital technologies and strategic acquisitions have started yielding results, positioning us well for sustained growth."
Outlook
Looking ahead, the company expects to maintain its growth momentum, driven by increasing demand for digital transformation services. The management remains optimistic about the pipeline of new deals and expects margin expansion in the coming quarters. Sonata Software continues to invest in talent and technology to capitalize on emerging opportunities in the IT services market.
The company's cash and cash equivalents stood at Rs 1,200 crore as of March 31, 2026, providing a strong buffer for future investments and shareholder returns.
