Sonata Software Sees Solid Q4 Revenue Rise, Minor Profit Decline

Sonata Software Sees Solid Q4 Revenue Rise, Minor Profit Decline

The tech services firm announces ₹4.4 per share dividend as it strengthens its position with robust top-line growth and strategic global deals

Introduction

Sonata Software, a prominent player in the digital transformation and IT services sector, has reported a healthy rise in its revenue for the fourth quarter of the financial year 2024–25. Despite a modest drop in net profit, the company’s continued growth in international markets, successful client acquisitions, and strong dividend payout underline a confident and resilient performance.

Revenue Rises Over 19% YoY

During the fourth quarter of fiscal year 2025, Sonata Software generated ₹2,617.2 crore in consolidated revenue, reflecting a growth of over 19% compared to the same quarter in the previous fiscal year. The increase reflects the company’s robust pipeline of enterprise deals and growing demand for its IT and digital transformation services across key geographies.
Much of the company’s revenue boost can be attributed to a surge in its international IT services business, which continues to drive Sonata’s topline. As more global enterprises accelerate their cloud adoption, AI integration, and digital workflows, Sonata has positioned itself as a go-to partner for scalable and efficient solutions.

Net Profit Records Marginal Decline

Sonata Software earned ₹107.5 crore in net profit for Q4 FY25, which is around 3% lower than what it made in the same quarter a year ago, despite solid revenue growth.
This minor dip was due to higher operational costs and increased investment in new strategic initiatives, including talent acquisition and technology upgrades.
However, on a quarter-on-quarter basis, the profit showed a 2% improvement, signaling stability in earnings and the ability to sustain profitability despite competitive industry pressures.

Final Dividend Declared at 440%

Sonata Software announced a final dividend of ₹4.4 per share for FY25, showing its aim to share profits and maintain steady returns for its shareholders.
This payout, which reflects 440% on a face value of ₹1, highlights the company’s continued focus on creating shareholder value even while investing in long-term growth opportunities.
This move comes after a steady track record of dividend declarations by the company and further demonstrates its strong cash position and commitment to distributing profits responsibly.

Share Price Reacts Positively

After the earnings report, Sonata Software’s stock rose by almost 5% in market trading.
The markets responded favorably not just to the revenue growth but also to the company’s execution capabilities, resilient profit margins, and forward-looking dividend declaration.
The uptick in share price also signals investor confidence in the firm’s global expansion strategy and its ability to secure high-value tech transformation contracts.

International Expansion and Strategic Wins

Sonata has made significant inroads in international markets, especially in the US and Europe, with two major client acquisitions during the quarter. These wins reinforce the company’s strengths in delivering complex IT services to enterprise clients looking to modernize operations.
The company’s management emphasized its intent to keep investing in digital capabilities, artificial intelligence, cloud solutions, and customer experience platforms — areas that are critical to its global clients’ business transformation goals.
Sonata also noted a notable improvement in EBITDA margins for its international operations, signaling increased operational efficiency and better resource allocation.

Focus on Technology-Led Growth

With technology at the heart of its strategy, Sonata is committed to deepening its offerings in data-driven digital services. The company continues to focus on building solutions around AI, automation, cloud-native development, and modern enterprise platforms like Microsoft Dynamics and SAP.
Its integrated approach to digital engineering and business IT has helped the firm create value-added services that go beyond traditional outsourcing, offering transformation at scale.

Conclusion

Sonata Software’s fourth-quarter performance for FY25 paints a picture of a company that is growing in both size and strategic focus. While net profit saw a slight year-on-year dip, the significant increase in revenue and solid dividend payout reflect underlying strength.
With momentum from key international deals, increasing EBITDA margins, and a technology-first growth model, Sonata is poised to further strengthen its presence in the global IT services landscape.
Investors, analysts, and stakeholders are likely to view the company’s performance as a mix of prudent financial management and strategic foresight — an encouraging sign for future quarters.

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