Tech

Q4'26 consolidated PAT grew by 25.0% QoQ and 21.4% YoY. Sonata Software recommends final dividend of 415% for FY'26.

India's Sonata Software reports a 25% quarterly and 21.4% yearly surge in patent applications, driven by Modernization Engineering services, as the company recommends a record 415% final dividend for FY'26. The financial results, released on May 7, 2026, underscore the growing demand for software modernization and patent-intensive services in the Indian market. Consolidated PAT (Profit After Tax) for Q4'26 reached ₹ [insert number].

Sonata Software, a leader in Modernization Engineering, reported its audited financial results for the Financial Year ended March 31, 2026. The company's consolidated PAT (Profit After Tax) for Q4'26 reached ₹130.5 crores, representing a 25.0% growth QoQ and 21.4% YoY.

Overview

The financial results underscore the growing demand for software modernization and patent-intensive services in the Indian market. Sonata Software's revenue for FY'26 stood at ₹10,701.2 crores, with a growth of 5.4% YoY. The company's EBITDA (before other income, forex, and exceptional items) for FY'26 stood at ₹741.3 crores, representing a 7.5% growth YoY.

Performance Highlights

The company's International IT Services segment reported a revenue of ₹2,948.0 crores for FY'26, with a growth of 4.2% YoY. The segment's EBITDA for FY'26 stood at ₹543.7 crores, representing a 13.1% growth YoY. The Domestic Products & Services segment reported a revenue of ₹7,772.1 crores for FY'26, with a growth of 5.9% YoY. The segment's EBITDA for FY'26 stood at ₹197.9 crores, representing a degrowth of 5.2% YoY.

Sonata Software's CEO-designate, Mr. Rajsekhar Datta Roy, commented on the results, stating that the company remains confident in its growth momentum and will continue to invest in AI capabilities and partnerships. The company's MD & CEO, Mr. Sujit Mohanty, highlighted the strong performance in the core cloud platform offerings and the successful acquisition of new clients for cloud services and data protection solutions.

Tradeoffs

The company's financial results indicate a strong performance in the International IT Services segment, driven by the growing demand for software modernization and patent-intensive services. However, the Domestic Products & Services segment reported a degrowth in EBITDA, which may be a concern for the company.

In conclusion, Sonata Software's financial results for FY'26 demonstrate a strong performance in the International IT Services segment, driven by the growing demand for software modernization and patent-intensive services. The company's investment in AI capabilities and partnerships is expected to further accelerate its growth momentum. As a practical takeaway, enterprises looking to adopt AI solutions may consider partnering with Sonata Software, given its strong track record in modernization engineering and AI-led solutions.

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