Sonata Software sinks 15% as Q3 profit drops sequentially on margin erosion

Sonata Software Q3 Results: Net Profit Falls 1.4%; Revenue Rises

Sonata Software Ltd.’s profit in the quarter ended December 2024 was Rs 105 crore, down 1.4% from Rs 106 crore in the previous quarter of the current fiscal, according to the company’s consolidated financial results announced on Thursday. The software provider’s sales increased by 31% to Rs 2,843 crore in the October-December quarter, up from Rs 2,170 crore in the second quarter of this fiscal year. The company’s earnings before interest, tax, depreciation, and amortization fell 9% to Rs 131 crore for the period under review, compared to Rs 144 crore in the last quarter of fiscal 2025.

Sonata Software’s Q3FY25 Highlights (Consolidated, QoQ) Revenue rose 31% to Rs 2,843 crore from Rs 2,170 crore. Ebitda fell 9% to Rs 131 crore from Rs 144 crore. Net profit fell 1.4% to Rs 105 crore from Rs 106 crore. Ebit margin fell to 4.6% from 6.7%. Sonata’s managing director and CEO, Samir Dhir, stated that in the third quarter of fiscal 2025, the company’s international business generated 4.4% (CC) QoQ growth and an Ebitda reduction owing to one-time cost items. “During the quarter, we secured two significant deals: our first multi-million-dollar transaction on Microsoft Fabric and one for Gen AI upgrade. “We remain optimistic about Sonata’s long-term vision and growth prospects,” he added.

Sonata’s current orders consist of 46% significant agreements, with 44% coming from Fortune 500 companies. In the third quarter, it closed two unnecessary contracts, including a global mining and manufacturing corporation in the EU and a technological service for transportation and logistics in the United States. Sonata’s shares finished 0.30% higher at Rs 551.60 on the NSE, while the benchmark Nifty 50 fell 0.39%.

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