Sonata Software reports 11% international growth, declares 125% interim dividend

International IT Services revenue grew 11% year-on-year, while the domestic business recorded 10.2% growth. The company also declared a 125% interim dividend and continued to strengthen its AI-led strategy during the first quarter of FY27.

Sonata Software has reported a strong start to FY27, posting double-digit year-on-year growth in consolidated revenue for the quarter ended June 30, 2026, supported by steady performance across its international IT services and domestic products and services businesses. The company also announced an interim dividend of 125% per share, reflecting confidence in its financial performance.

For the first quarter of FY27, consolidated revenue rose 10.6% year-on-year to ₹3,279.1 crore, while EBITDA increased 12.1% to ₹179 crore. Consolidated profit after tax (PAT) stood at ₹108.1 crore. The international IT services business recorded revenue of ₹777.2 crore, up 11% year-on-year, while the domestic products and services business generated revenue of ₹2,505.6 crore, registering a 10.2% increase over the corresponding period last year.

International IT services EBITDA grew 3.2% year-on-year to ₹119.6 crore, whereas the domestic business delivered a stronger 34.9% rise in EBITDA to ₹59.3 crore. During the quarter, Sonata also added seven new customers to its international business, highlighting continued demand for its digital transformation and AI-led offerings.

AI strategy gains momentum

Commenting on the results Rajsekhar Datta Roy, CEO of Sonata Software, said: “In this quarter, we have taken foundational steps for AI led growth across our offerings, GTM, partnerships, delivery and talent. The progress made and market response has been encouraging. Our AI-led pipeline has improved by 21%, while AI-led orderbook have increased by 27% QoQ, reinforcing our conviction around our strategy. We will continue to execute with operational rigor while focusing on growth."

The company said its financial performance reflects continued investments in AI-driven services, digital transformation capabilities and customer acquisition. Sonata maintained healthy liquidity during the quarter, with gross cash and cash equivalents of ₹567 crore, while key profitability indicators such as return on capital employed (ROCE) also improved year-on-year.

Domestic business maintains steady momentum

Sonata's domestic business continued to benefit from demand for cloud-led digital transformation projects and higher-value customer engagements. The segment delivered improved gross contribution and profitability despite challenging market conditions in certain industries.

Speaking on the results Sujit Mohanty, MD & CEO of Sonata Information Technology Limited, said: “During this quarter we continued to make progress and renewed multiple existing client contracts with enhanced contract values, despite industry head winds in some of the sectors. Our consistent focus on Cloud business enabled us to deliver better gross contribution YoY and to acquire new customers."

Looking ahead, Sonata Software plans to further strengthen its AI-first modernization strategy through its Platformation framework and Harmoni.AI portfolio, while continuing to invest in cloud, data, AI and enterprise modernization services to support customers' digital transformation initiatives globally.