Sonata Software Q2 Results 2026: Revenue Jumps 15%
Sonata Software Q2 Results 2026: Revenue Jumps 15%
Sonata Software Q2 Results 2026 revealed a sharp contrast between revenue growth and profitability. The Bengaluru-based IT services company reported consolidated revenue of ₹2,445.2 crore for the quarter ended 30 September 2026, up 15.4% from ₹2,119.3 crore a year earlier.
However, consolidated net profit slipped 3.2% year-on-year to ₹116.4 crore, compared with ₹120.2 crore in the corresponding quarter of FY26.
The company announced its unaudited Q2 FY27 results on 5 November 2026 and declared a second interim dividend of ₹1.25 per share.
Revenue Rises, but Profit Growth Remains Uneven
The headline numbers show improving annual revenue alongside relatively modest operating earnings growth.
| Consolidated metric | Q2 FY27 | Q2 FY26 | YoY change |
|---|---|---|---|
| Revenue | ₹2,445.2 crore | ₹2,119.3 crore | +15.4% |
| EBITDA* | ₹179.5 crore | ₹172.7 crore | +3.9% |
| Net profit | ₹116.4 crore | ₹120.2 crore | −3.2% |
EBITDA follows the company’s definition, excluding other income, foreign exchange effects and exceptional items.
Compared with the preceding quarter, consolidated profit improved 7.7% from ₹108.1 crore. Revenue, however, declined 25.4% sequentially from ₹3,279.1 crore.
This makes the distinction between year-on-year and quarter-on-quarter comparisons particularly important when interpreting the results.
The figures are available in Sonata Software’s official earnings announcement.
Sonata Software Q2 Results 2026: Segment Performance
Sonata operates through international IT services and domestic products and services businesses.
International IT services revenue reached ₹797.9 crore, increasing 9.3% year-on-year and 2.7% sequentially.
The segment’s profit after tax rose 11.1% quarter-on-quarter to ₹69.1 crore, although it remained 11.4% below the year-earlier level.
The domestic business generated ₹1,655.6 crore in revenue, representing 19% annual growth.
Its gross contribution increased 19.3% year-on-year to ₹82 crore, while segment profit rose 12.2% to ₹47.3 crore.
These differences suggest that revenue growth was not translating uniformly into profit across the company’s operations.
AI-Led Services Remain a Strategic Priority
Management highlighted progress in AI-led engineering and the company’s Harmoni.AI offerings.
Sonata reported that AI-led order bookings accounted for 25% of total order bookings during the quarter.
The company also added four customers to its international IT services business.
These developments indicate where management is directing its commercial efforts, but investors should distinguish order-booking indicators from revenue already recognised.
Future earnings will depend on project execution, customer spending and the company’s ability to convert business opportunities into profitable contracts.
Interim Dividend: Record Date and Amount
Sonata Software’s board declared a second interim dividend of ₹1.25 per equity share for FY27.
The company fixed 11 November 2026 as the record date.
For illustration, an eligible shareholder holding 200 shares would receive a gross dividend of ₹250, before any applicable taxes.
Dividend eligibility depends on the relevant market settlement and corporate-action rules. Investors should verify the ex-dividend date through their broker or the stock exchange.
The company has published the relevant documents through its investor relations portal.
What the Numbers Mean for Shareholders
The quarter presents three developments worth separating.
First, annual revenue growth remained healthy, supported by both international and domestic operations.
Second, consolidated profit declined from a year earlier despite the higher revenue base. That makes operating efficiency and margins important indicators for subsequent quarters.
Third, the sequential recovery in international IT services revenue and profit offers an encouraging sign, although one quarter does not establish a sustained turnaround.
Investors should also note that consolidated cash and cash equivalents stood at ₹426.3 crore on a gross basis, while the company reported a negative ₹69.3 crore net cash position under its disclosed measure.
These figures warrant examination alongside the complete financial statements rather than in isolation.
Three Things to Watch in the Next Quarter
International services momentum: Whether sequential growth continues and translates into stronger year-on-year profitability.
AI business conversion: Whether AI-related orders generate meaningful recognised revenue and sustainable margins.
Domestic business contribution: Whether growth in gross contribution can support overall earnings despite fluctuations in reported domestic revenue.
Sonata’s Q2 results demonstrate that revenue expansion and shareholder earnings do not always move together. The next earnings report will provide a clearer indication of whether the improvement in international operations can strengthen consolidated profitability.
Disclaimer: This article is for informational purposes only and is not a recommendation to buy, sell or hold securities. Equity investments involve market risk.
