Sonata Software Limited — PPTs, 30-07-2025: Investor Presentation

**Financial Highlights:**

Sonata Software reported a 1.7% QoQ growth in consolidated PAT. International IT services revenue saw a 0.6% QoQ increase, while the domestic business revenue surged 18.6% QoQ, driven by an 88% cloud contribution. Domestic Gross Contribution and EBITDA also grew 12.6% and 22.1% QoQ respectively.

**Strategic Initiatives & Growth Drivers:**

The company is evolving towards Sonata.AI, focusing on modernization and digital engineering with its 'PLATFORMATION' framework. Cloud & Data services have scaled to 59% of revenue. Key future bets include expanding with Microsoft and AWS, driving large accounts, and leveraging AI and Microsoft Fabric, with pipelines of $46M for AI and $39M for Fabric.

**Business Developments:**

Sonata secured three large deals in Q1 FY'26, including a $73M TMT client, a $56M Healthcare client, and a $7M Tech client, adding to $456M TCV from 23 net new deals since FY22. The company also launched AgentBridge, an enterprise-grade Agentic AI Workflow, bolstering its Harmoni.AI framework.

**Market Position & Competitive Advantage:**

Positioned as a modernization engineering firm, Sonata boasts a strong global presence and a 30-year strategic partnership with Microsoft. Its client base shows increasing quality, with 40% of its top 10 accounts now Fortune 500 companies, and 60% of its large deal pipeline targeting Fortune 500s. Verticals like HLS+BFSI and TMT are scaling significantly.

**Investor Implications:**

The consistent financial growth, robust large deal pipeline, and strategic focus on high-demand areas like AI and cloud indicate positive growth potential. The company's strong partnerships and increasing engagement with large enterprises suggest a solid foundation, with execution on its pipeline being a key factor to monitor.