Want to see IN:SONATSOFTW full AI Analyst Report?
Top Page
Sonata Software Limited
(SONATSOFTW)
Select Model
Select Model
Rating:63Neutral
Price Target:
₹264.00
▼(-8.38% Downside)
Action:Downgraded
Date:10/14/26
The score is anchored by solid financial performance driven by strong revenue growth and a generally manageable balance sheet, tempered by margin compression and inconsistent cash flow conversion. Technicals are a major drag with the stock trading below key moving averages and negative momentum indicators. Valuation is supportive with a moderate P/E and a solid dividend yield.
Positive Factors
Revenue Scaling
Strong multi-year revenue scaling, including a sharp re-acceleration in 2026, indicates continued demand for Sonata’s digital transformation and enterprise technology services. Sustained growth can broaden client relationships, support investment in capabilities, and strengthen operating scale over the next several quarters.
Negative Factors
Margin Compression
Meaningful compression across gross, operating, and EBITDA margins reduces the quality of Sonata’s revenue growth and suggests rising cost pressure or an unfavorable mix shift. If this persists, it can limit earnings expansion, reinvestment capacity, and the benefit of stronger absolute revenue.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Scaling
Strong multi-year revenue scaling, including a sharp re-acceleration in 2026, indicates continued demand for Sonata’s digital transformation and enterprise technology services. Sustained growth can broaden client relationships, support investment in capabilities, and strengthen operating scale over the next several quarters.
Read all positive factors
Sonata Software Limited (SONATSOFTW) vs. iShares MSCI India ETF (INDA)
Market Cap
₹64.50B
Dividend Yield3.44%
Average Volume (3M)122.28K
Price to Earnings (P/E)13.8
Beta (1Y)2.15
Revenue Growth3.97%
EPS Growth8.32%
CountryIN
Employees5,948
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)16.71
Shares Outstanding280,424,800
10 Day Avg. Volume197,739
30 Day Avg. Volume122,275
Financial Highlights & Ratios
PEG Ratio1.33
Price to Book (P/B)3.05
Price to Sales (P/S)0.54
P/FCF Ratio14.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)17.7
Revenue Forecast (FY)₹116.81B
Sonata Software Limited Business Overview & Revenue Model
Company Description
Sonata Software Limited, along with its subsidiaries, delivers a broad spectrum of information technology services and specialized solutions across a global footprint, serving clients in India, the United States, Europe, the Middle East, and Austr...
How the Company Makes Money
Sonata Software primarily makes money by delivering IT services and solutions under contractual engagements with enterprise customers. Revenue is largely generated from (1) professional services fees for consulting, implementation, systems integra...
Sonata Software Limited Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 110.15B | 107.01B | 101.57B | 86.13B | 74.49B | 55.53B |
| Gross Profit | 12.55B | 12.36B | 13.25B | 15.30B | 10.60B | 8.41B |
| EBITDA | 6.74B | 6.44B | 6.89B | 6.77B | 6.71B | 5.64B |
| Net Income | 4.63B | 4.64B | 4.25B | 3.08B | 4.52B | 3.76B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 50.91B | 47.55B | 51.49B | 43.57B | 25.55B |
| Cash, Cash Equivalents and Short-Term Investments | 5.79B | 6.04B | 6.95B | 11.38B | 9.30B | 8.96B |
| Total Debt | 0.00 | 7.23B | 5.16B | 7.65B | 5.91B | 1.59B |
| Total Liabilities | -19.05B | 31.87B | 30.49B | 37.43B | 30.56B | 14.56B |
| Stockholders Equity | 19.05B | 19.05B | 17.06B | 14.06B | 13.01B | 10.99B |
Cash Flow | ||||||
| Free Cash Flow | -222.40M | 3.95B | 5.76B | 2.55B | 2.27B | 4.41B |
| Operating Cash Flow | 366.30M | 5.08B | 6.44B | 2.81B | 2.68B | 4.50B |
| Investing Cash Flow | -776.70M | -2.25B | -4.36B | -543.10M | -8.55B | -834.70M |
| Financing Cash Flow | -807.00M | -2.29B | -4.33B | -1.08B | 1.87B | -2.71B |
Sonata Software Limited Technical Analysis
Negative
288.15
Price Trends
268.45
Negative
281.52
Negative
276.20
Negative
Market Momentum
-10.89
Positive
31.77
Neutral
14.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SONATSOFTW, the sentiment is Negative. The current price of 288.15 is above the 20-day moving average (MA) of 242.86, above the 50-day MA of 268.45, and above the 200-day MA of 276.20, indicating a bearish trend. The MACD of -10.89 indicates Positive momentum. The RSI at 31.77 is Neutral, neither overbought nor oversold. The STOCH value of 14.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SONATSOFTW.
Sonata Software Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | ₹122.42B | 15.54 | ― | 2.79% | 8.81% | 12.08% | |
77 Outperform | ₹45.75B | 10.72 | ― | 1.63% | 6.37% | 16.34% | |
76 Outperform | ₹928.34B | 51.12 | ― | 0.31% | 27.10% | 7.08% | |
73 Outperform | ₹95.83B | 15.57 | ― | 1.90% | 3.75% | 32.75% | |
63 Neutral | ₹64.50B | 13.76 | ― | 3.44% | 3.97% | 8.32% | |
59 Neutral | ₹46.45B | 20.58 | ― | 2.10% | 11.50% | 16.69% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:SONATSOFTW
Sonata Software Limited
230.00
-133.35
-36.70%
IN:BSOFT
Birlasoft Limited
342.65
-26.71
-7.23%
IN:HAPPSTMNDS
Happiest Minds Technologies Ltd.
305.05
-208.73
-40.63%
IN:MASTEK
Mastek Limited
1,475.30
-664.46
-31.05%
IN:PERSISTENT
Persistent Systems Limited
5,870.00
-48.38
-0.82%
IN:ZENSARTECH
Zensar Technologies Limited
537.55
-243.38
-31.17%
Sonata Software Limited Corporate Events
Sonata Software’s 31st AGM Resolutions Pass via Virtual E-Voting
Aug 1, 2026
Sonata Software Limited held its 31st Annual General Meeting on July 31, 2026, via video conferencing and other audio-visual means, reflecting continued reliance on virtual formats permitted by MCA and SEBI circulars. The company engaged National ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.