Sonata Software share price plunges up to 14% after THIS update on Q4 revenue, recovers later

The stock plunged as the company, on Tuesday, in its regulatory filing, said that the revenue estimates for Q4 2024-25 from its largest client are likely to be lower than anticipated, resulting in lower revenue from its international business for the said quarter than previously envisioned during the previous analyst/investor call held on February 6, 2025.

Last check, the stock was trading nearly 6% lower at ₹315.05 on the NSE.

Data show that the shares of Sonata Software have fallen around 45% so far in 2025 (as of April 16 closing), in line with other IT stocks. The NIFTY IT index has tumbled over 23% year-to-date (YTD).

Sonata Software is a global IT services company. The company offers a range of services and solutions, including cloud transformation, data analytics, Microsoft Dynamics, and digital contact centre solutions.

Sonata serves various industries such as Banking, Financial Services and Insurance (BFSI); Healthcare and Lifesciences (HLS); Telecom, Media and Technology (TMT); and Retail, Manufacturing and Distribution (RMD) space.

Sonata Software Q3 FY25 Results

Sonata Software reported a 1.4% quarter-on-quarter (QoQ) decline in consolidated profit after tax (PAT) at ₹105 crore for the third quarter of fiscal 2025.

The company had reported a net profit of ₹106.49 crore during the last quarter of the same fiscal year.

Sonata Software’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 7.8% QoQ to ₹163.6 crore, while the company’s cash and cash equivalents stood at ₹176 crore at the end of the quarter.

The company’s revenue from international IT services stood at ₹731.7 crore during the quarter, marking a 3.4% sequential increase. In dollar terms, revenue was $87 million, growing 2.8% QoQ and 3.9% YoY. EBITDA for the segment declined 16.9% QoQ to ₹107.1 crore, while PAT fell 8.4% to ₹56.9 crore.

The IT services firm delivered revenue growth of 4.4% (CC) QoQ in international services, and domestic business delivered gross contribution growth of 16.7% QoQ.

Speaking on the quarterly results, Samir Dhir, MD & CEO of the company, said, “During the quarter, we won two large deals, our first multi-million-dollar deal on Microsoft Fabric and for Gen AI modernisation. We remain optimistic about our long-term vision and the growth prospects of Sonata.”