Sonata Software (NSE: SONATSOFTW | BSE: 532221), a global leader in Modernization Engineering, has announced its audited financial results for the financial year ended March 31, 2025. The Board of Directors has recommended a final dividend of 440% for the year, reflecting the company’s strong financial performance and commitment to shareholder value.
Samir Dhir, Managing Director and CEO, noted that the company delivered a quarter-on-quarter EBITDA growth of 1.9% in Q4 FY25. He highlighted the success of Sonata’s diversification strategy, particularly in the Healthcare and BFSI sectors, which now constitute 35% of total business, up from 13% three years ago. Sonata secured 11 significant contracts during the year, including two in the final quarter.
Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, reported sustained momentum in client engagement, contract renewals, and cloud-led transformation initiatives, despite macroeconomic headwinds.
For FY25, the International IT Services division reported revenues of ₹2,829.7 crore, reflecting a year-on-year growth of 5.6%. However, on a quarterly basis, revenue in Q4 declined by 4.0% to ₹702.3 crore. Despite the annual increase in revenue, EBITDA for the full year dropped by 14.7% to ₹480.5 crore. On a more positive note, Q4 EBITDA rose by 8.0% quarter-on-quarter to ₹115.7 crore, showing some operational improvement towards the end of the year.
The profit after tax (PAT) for International IT Services saw a sharp increase of 69.9% year-on-year, reaching ₹246.6 crore in FY25. In Q4, PAT rose by 9.5% to ₹62.3 crore compared to the previous quarter. Days sales outstanding (DSO) improved in Q4 to 61 days from 64 in Q3, indicating better cash flow and collections. The business also added 14 new customers during the final quarter of the fiscal year, reflecting continued client acquisition efforts.
In the Domestic Products and Services segment, FY25 revenue reached ₹7,340.6 crore, marking a strong 23.4% growth year-on-year. However, Q4 revenue dipped 9.1% sequentially to ₹1,918.2 crore. Gross contribution for the year stood at ₹299.1 crore, a 14.8% increase over the previous year, while Q4 gross contribution declined by 4.3% to ₹78.4 crore.
EBITDA for the Domestic Products and Services business saw a healthy 26.8% growth for FY25, totaling ₹208.6 crore. In Q4, EBITDA remained largely flat at ₹56.5 crore with a marginal 0.1% increase quarter-on-quarter. PAT for the year came in at ₹178.1 crore, representing a 9.0% growth, though Q4 PAT decreased by 6.0% to ₹45.2 crore. The segment showed improved DSO performance, with a reduction to 46 days in Q4 from 51 days in Q3.
The consolidated financial performance for FY25 showed total revenues of ₹10,157.2 crore, translating to a 17.9% increase over the previous fiscal year. Q4 revenue was ₹2,617.2 crore, showing a 7.9% decline from the previous quarter. Consolidated EBITDA for the year fell by 5.2% to ₹689.3 crore, although Q4 EBITDA improved by 5.8% to ₹172.5 crore.
PAT at the consolidated level rose significantly by 37.6% for FY25, reaching ₹424.7 crore. In Q4, PAT grew modestly by 2.4% to ₹107.5 crore. The company’s liquidity position strengthened, with net cash and equivalents rising to ₹262 crore in Q4 from ₹176 crore in Q3. Return ratios remained strong in the Domestic segment, with ROCE at 43.2% and RONW at 41.8% in Q4.
Sonata Software, a $1 billion revenue company, is a leader in digital modernization. Its proprietary Platformation.AI framework enables intelligent digital ecosystems, leveraging technologies across Data, Cloud, Cybersecurity, Automation, Dynamics, Generative AI, and Microsoft Fabric. The company’s AI platform, Sonata Harmoni.AI, integrates ethical, secure, and privacy-compliant AI applications, aimed at enhancing efficiency, customer experience, and innovative business models.
Headquartered in Bengaluru, Sonata maintains a strong global presence across North America, the UK, Europe, APAC, and ANZ. It serves clients across BFSI, Healthcare, Telecom, Media & Technology, and Retail & Manufacturing. Sonata holds strategic partnerships with Microsoft and AWS and is a member of the Microsoft AI Partner Council and the AWS Generative AI Competency network.
As Sonata’s domestic arm, Sonata Information Technology Limited drives digital transformation for Indian enterprises. It supports large-scale adoption of hybrid cloud infrastructure, cybersecurity, and enterprise IT management—enabling innovation and operational efficiency across critical sectors.
