Sonata Software Recommends Final Dividend of 440% for FY 25 and Delivers QoQ EBITDA Margin Growth of 1.9% for the International IT Services

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MUMBAI, India, May 7, 2025 /PRNewswire/ -- Sonata Software (NSE: SONATSOFTW) (BSE: 532221), a leader in Modernization Engineering, today reported its audited financial results for its Financial Year ended March 31, 2025.

Commenting on the quarterly results, Mr. Samir Dhir, MD & CEO of Sonata Software said, "In Q4, we delivered a QoQ 1.9% improvement in EBITDA. Over FY'25, we secured 11 large deals, including two in the fourth quarter. Our Healthcare and BFSI verticals have grown significantly, scaling from 13% to 35% of our business over the past three years—reflecting the success of our diversification strategy. We remain confident in Sonata's long-term vision and growth trajectory, as clients increasingly embrace modernization to gain competitive advantage."

Speaking on the results Mr. Sujit Mohanty, MD & CEO of Sonata Information Technology Limited said, "This quarter, we made steady progress by renewing several key client contracts—many at enhanced values—despite sectoral headwinds. Our continued focus on cloud-led transformation drove improved year-on-year gross contribution and helped us onboard new customers."

Performance Highlights for FY'25 & Q4'25:

• International IT Services:
  

• • Revenue for FY'25 was ₹2,829.7 crores, reflecting a YoY growth of 5.6%, Q4'25 stood at ₹702.3 crores, showing a decline of 4.0% QoQ.
  • In USD terms, revenue for FY'25 was $335.5 million, up 3.7% YoY, Q4'25 stood at $81.3 million, showing a QoQ decline of 6.6%.
  • EBITDA (before other income and forex) for FY'25 was ₹480.5 crores, a decline of 14.7% compared to the previous year, Q4'25 stood at ₹115.7 crores, increase by 8% QoQ.
  • PAT after exceptional items for FY'25 was ₹246.6 crores, increase by 69.9% YoY (FY'24 ₹145.1 crores).
  • Q4'25 PAT stood at ₹62.3 crores, increase by 9.5% QoQ
  • DSO improved to 61 days in Q4'25, compared to 64 days in Q3'25. (DSO revised based on the industry practices, using TTM revenue and the current debtor balances.)
  • 14 new customers were added during the quarter.
    
    
• Domestic Products & Services: 

• • Revenue for FY'25 stood at ₹7,340.6 crores, reflecting a YoY growth of 23.4%. Q4'25 revenue stood at ₹1,918.2 crores, showing a decline of 9.1% QoQ.
  • Gross contribution for FY'25 was ₹299.1 crores, increase by 14.8% YoY. For Q4'25, gross contribution stood at ₹78.4 crores, a decline of 4.3% QoQ.
  • EBITDA (before other income and forex) for FY'25 was ₹208.6 crores, QoQ a YoY growth of 26.8%. Q4'25 EBITDA stood at ₹56.5 crores, showing increase by 0.1% QoQ.
  • PAT for FY'25 stood at ₹178.1 crores, increased by 9.0% YoY, for Q4'25 stood at ₹45.2 crores, a decline of 6.0% QoQ.
  • DSO improved to 46 days in Q4'25, compared to 51 days in Q3'25.
  • ROCE stood at 43.2% in Q4'25, compared to 48.5% in Q3'25.
  • RONW stood at 41.8% in Q4'25, compared to 47.7% in Q3'25.
    
    
• Consolidated: 

• • Revenue for FY'25 stood at ₹10,157.2 crores, reflecting a YoY growth of 17.9%, Q4'25 revenue stood at ₹2,617.2 crores, showing a QoQ decline of 7.9%.
  • EBITDA for FY'25 was ₹689.3 crores, YoY decline of 5.2%, Q4'25 EBITDA stood at ₹172.5 crores, showing increase of 5.8% QoQ.
  • PAT after exceptional items for FY'25 stood at ₹424.7 crores (FY'24 ₹308.5 crores), showing a YoY growth of 37.6%.
  • Q4'25 PAT stood at ₹107.5 crores, increase by 2.4% QoQ.
  • Cash and cash equivalents (net) stood at ₹ 262 Crores in Q4'25(Q3'25 ₹ 176 Crores) against Q4'24 ₹ 441.3 Crores.

About Sonata Software

In today's market, there is a unique duality in technology adoption. On one side, extreme focus on cost containment by clients, and on the other, deep motivation to modernize their Digital storefronts to attract more consumers and B2B customers.

Sonata Software, with $1 billion revenue, is the leading Modernization company. Our unique Modernization approach through Platformation.AI helps create efficient and agile digital businesses to drive intelligent ecosystems of the future. Our bouquet of Modernization Engineering services cuts across Data, Cloud, Dynamics, Automation, Cyber Security, and around newer technologies like Generative AI, Microsoft Fabric, and other modernization platforms.

Our unique and innovative Responsible-first AI offering Sonata Harmoni.AI is a comprehensive platform powered by GenAI and encompasses a variety of industry solutions, service delivery platforms, and accelerators. It is distinguished by its embedded ethics, privacy, security, and compliance. We enable our clients to leverage AI in three different ways: i) driving efficiencies, ii) driving higher consumer experience/modern sales, and iii) driving innovative business models.

Headquartered in Bengaluru, India, Sonata Software has a strong global presence, including key regions North America, UK, Europe, APAC, and ANZ. We are one of the fastest growing IT Services companies and a trusted partner of Fortune 500 companies in Banking, Financial Services and Insurance (BFSI); Healthcare and Lifesciences (HLS); Telecom, Media, and Technology (TMT); and Retail, Manufacturing and Distribution (RMD) space. 

Sonata Software boasts of a very strong partnership with Microsoft, AWS and many others. We are proud member of Microsoft AI Partner Council and have also achieved AWS Generative AI Competency. Also, we are member of the prestigious Inner Circle for Microsoft Business Applications and Featured and Launch Partner for Microsoft Fabric.

About Sonata Information Technology Limited

Sonata Information Technology Limited, our Domestic Business, partners with Indian enterprise customers in their digital transformation journeys. As a digital transformation partner, it helps enterprises adopt and scale cloud solutions, fostering innovation and growth. It also helps customers in managing & maintaining their Hybrid Cloud Platforms and related enterprise IT security environments.

For more information, please visit https://www.sonata-software.com/

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