Sonata Software reports resilient Q2 FY26 performance

Sonata Software reported a resilient Q2 FY26 performance, with international services revenue growing 1% quarter-on-quarter in constant currency to $82m, and rupee revenues reaching INR 730.30 crores, up 4.3% quarter-on-quarter. EBITDA for international services improved by 70 basis points sequentially to 17.3%, driven by increased utilization (87.3% from 86.6%) and a higher offshoring mix (57% from 53%). Consolidated PAT for Q2 FY26 stood at INR 120.2 crores, a 10% quarter-on-quarter increase.

The company secured one large deal and expanded its AI-led order bookings, with the AI order book contributing 10% of the total. Sonata added six enterprise-grade clients, bringing the number of clients with an annual run rate exceeding $10m to eight. Despite some headwinds in large TMT and BFSI accounts, the company maintains a strategic focus on its healthcare and life sciences, and BFSI verticals, which now contribute 33% of total revenue, up from 13% three years ago.

Sonata declared a second interim dividend of INR 1.25 per share, aligning with its commitment to a quarterly interim dividend payout policy. The overall book-to-bill ratio was 1.28, supported by growth in non-big tech segments and strategic wins in healthcare and TMT.