Here are five reasons why the stock has surged in today’s session:
Strong Results
For the March quarter, Sonata Software reported a strong operating performance despite a 17% drop in its topline.
Earnings Before Interest and Tax (EBIT) grew by 5.6% from the December quarter, margins also expanded by 160 basis points sequentially.
The topline was a drag mainly due to the underperformance of the company’s domestic business.
Two Major Large Deal Wins
Sonata Software successfully secured two significant large deals during the quarter. These include an AI-led platform modernization project for a major global fintech firm and a modern engineering engagement with a leading PE-backed software holding company.
37% of its large deal pipeline comprises of Fortune 500 clients, its investor presentation stated.
AI-Led Pipeline Rising
Sonata’s AI-led pipeline has surged to $335 million, with approximately $13.7 million in AI-specific wins already recorded.
Bet on Cloud & Data
Sonata’s Cloud and Data services business is now accounting for 65% of total revenue in FY26, up from 52% in FY24. The Cloud and Data pipeline currently represents 57% of the active pipeline.
Dividend Payout
The board has also approved a dividend payout of ₹4.15 per equity share for its shareholders. The payout is subject to approval from shareholders at the company’s upcoming annual general meeting (AGM).
Shares of Sonata Software are trading 8% higher on Friday at ₹292.6. The stock has risen 19% in the last one month, but is significantly below its 52-week high of ₹452.8.
