Sonata Software Reports 15% Y-o-Y Increase in Q2 FY27 Consolidated Revenue

BENGALURU — Sonata Software has released its financial results for the second quarter of FY27, reporting a consolidated revenue of ₹2,445.2 crore. This represents a 15.4 per cent increase compared to the same period previous year, although revenue declined 25.4 per cent sequentially.

The company’s consolidated net profit for the quarter was ₹116.4 crore, reflecting a 7.7 per cent increase from the ₹108.1 crore reported in the preceding quarter. On a year-on-year basis, however, net profit registered a minor decline of 3.2 per cent. Consolidated EBITDA, calculated before other income, forex, and exceptional items, rose 3.9 per cent to ₹179.5 crore.

Breaking down the business segments, the International IT-services division generated revenue of ₹797.9 crore. This marks a 9.3 per cent increase year-on-year and a 2.7 per cent increase sequentially. In constant currency terms, revenue grew 1.3 per cent year-on-year and 1.2 per cent quarter-on-quarter, with the segment recording an EBITDA margin of 15.5 per cent. Net profit for the International IT-services business declined 11.4 per cent year-on-year to ₹69.1 crore, while showing an 11.1 per cent sequential improvement.

Meanwhile, the Domestic Products and Services business recorded revenue of ₹1,655.6 crore, translating to a 19 per cent year-on-year increase, despite a sequential decline of 33.9 per cent. Net profit for the domestic segment stood at ₹47.3 crore, up 12.2 per cent year-on-year and 3.1 per cent quarter-on-quarter.

Regarding workforce metrics, Sonata Software's total headcount, including the domestic business, stood at 6,214 at the end of the quarter. This compares to 6,293 employees in the previous quarter and 6,629 a year earlier. Attrition continued to improve, dropping to 10 per cent from 13 per cent in Q1 FY27 and 14 per cent in Q2 FY26.

Rajsekhar Datta Roy, CEO of Sonata Software, noted that the company's execution around AI-led engineering and go-to-market strategies contributed to steady progress, supported by early revenue growth signs and an increase in AI-led order books. Sujit Mohanty, MD and CEO of Sonata Information Technology Ltd, highlighted healthy domestic performance, customer base expansion, renewal of enterprise contracts, and a strategic collaboration agreement with AWS aimed at accelerating cloud adoption.

"Sonata Software's Q2 results reflect the dual realities of steady year-on-year revenue expansion alongside sequential fluctuations in specific business segments. The focus on AI-driven engineering, strategic hyperscaler partnerships like AWS, and declining attrition rates are notable operational highlights. For technology enterprises, balancing long-term cloud and AI transformation strategies with margin management remains crucial as demand patterns continue to evolve." — Dr. Shishir Gupta, Founder & CEO, StartupLanes