Reported Earnings • May 08
Full year 2026 earnings: Revenues and EPS in line with analyst expectations Full year 2026 results: EPS: ₹16.74 (up from ₹15.30 in FY 2025). Revenue: ₹108.1b (up 6.4% from FY 2025). Net income: ₹4.64b (up 9.4% from FY 2025). Profit margin: 4.3% (in line with FY 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) were also in line with analyst expectations. Revenue is forecast to grow 9.2% p.a. on average during the next 3 years, compared to a 6.1% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 3% per year but the company’s share price has fallen by 12% per year, which means it is significantly lagging earnings. Buy Or Sell Opportunity • May 06
Now 21% overvalued Over the last 90 days, the stock has fallen 13% to ₹270. The fair value is estimated to be ₹222, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 8.5% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Announcement • May 02
Sonata Software Limited to Report Q4, 2026 Results on May 07, 2026 Sonata Software Limited announced that they will report Q4, 2026 results on May 07, 2026 Buy Or Sell Opportunity • Apr 15
Now 23% overvalued Over the last 90 days, the stock has fallen 27% to ₹254. The fair value is estimated to be ₹206, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 8.5% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Price Target Changed • Mar 20
Price target decreased by 7.8% to ₹345 Down from ₹374, the current price target is an average from 7 analysts. New target price is 46% above last closing price of ₹237. Stock is down 37% over the past year. The company is forecast to post earnings per share of ₹16.70 for next year compared to ₹15.30 last year. Buy Or Sell Opportunity • Mar 18
Now 21% overvalued Over the last 90 days, the stock has fallen 29% to ₹241. The fair value is estimated to be ₹199, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 14% over the last 3 years, while earnings per share has been flat. For the next 3 years, revenue is forecast to grow by 8.5% per annum. Earnings are also forecast to grow by 15% per annum over the same time period. Price Target Changed • Feb 09
Price target decreased by 8.4% to ₹385 Down from ₹421, the current price target is an average from 7 analysts. New target price is 22% above last closing price of ₹315. Stock is down 33% over the past year. The company is forecast to post earnings per share of ₹16.67 for next year compared to ₹15.30 last year. Reported Earnings • Feb 07
Third quarter 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2026 results: EPS: ₹3.76 (down from ₹3.78 in 3Q 2025). Revenue: ₹30.9b (up 8.8% from 3Q 2025). Net income: ₹1.04b (flat on 3Q 2025). Profit margin: 3.4% (down from 3.7% in 3Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 20%. Earnings per share (EPS) missed analyst estimates by 11%. Revenue is forecast to grow 8.4% p.a. on average during the next 3 years, compared to a 7.3% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has fallen by 2% per year. Announcement • Jan 29
Sonata Software Limited to Report Q3, 2026 Results on Feb 06, 2026 Sonata Software Limited announced that they will report Q3, 2026 results on Feb 06, 2026 Price Target Changed • Nov 17
Price target decreased by 7.9% to ₹400 Down from ₹434, the current price target is an average from 7 analysts. New target price is 7.9% above last closing price of ₹371. Stock is down 33% over the past year. The company is forecast to post earnings per share of ₹16.60 for next year compared to ₹15.30 last year. Reported Earnings • Nov 15
Second quarter 2026 earnings: EPS and revenues exceed analyst expectations Second quarter 2026 results: EPS: ₹4.33 (up from ₹3.84 in 2Q 2025). Revenue: ₹21.5b (flat on 2Q 2025). Net income: ₹1.20b (up 13% from 2Q 2025). Profit margin: 5.6% (up from 4.9% in 2Q 2025). Revenue exceeded analyst estimates by 30%. Earnings per share (EPS) also surpassed analyst estimates by 13%. Revenue is forecast to grow 9.8% p.a. on average during the next 3 years, compared to a 6.7% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. Announcement • Nov 07
Sonata Software Limited to Report Q2, 2026 Results on Nov 13, 2025 Sonata Software Limited announced that they will report Q2, 2026 results at 12:08 PM, Indian Standard Time on Nov 13, 2025 Valuation Update With 7 Day Price Move • Aug 06
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₹347, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 25x in the IT industry in India. Total returns to shareholders of 40% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹267 per share. Announcement • Jul 30
Sonata Software Limited Declares Interim Dividend for the Financial Year 2025-26, Payable on or After 20th August, 2025 Sonata Software Limited declared an Interim Dividend of INR 1.25/- per Equity share (125% on par value of INR 1/-) for the financial year 2025-26. The Record date for the purpose of payment of the Interim Dividend will be 8th August, 2025. The Interim Dividend will be paid to the registered shareholders on or after 20 th August, 2025 through Electronic mode or by dividend warrants, as applicable. Announcement • Jul 23
Sonata Software Limited to Report Q1, 2026 Results on Jul 30, 2025 Sonata Software Limited announced that they will report Q1, 2026 results on Jul 30, 2025 Price Target Changed • Jul 10
Price target decreased by 7.0% to ₹449 Down from ₹483, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of ₹431. Stock is down 31% over the past year. The company is forecast to post earnings per share of ₹18.58 for next year compared to ₹15.30 last year. Reported Earnings • Jul 09
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: ₹15.30 (up from ₹11.12 in FY 2024). Revenue: ₹101.6b (up 18% from FY 2024). Net income: ₹4.25b (up 38% from FY 2024). Profit margin: 4.2% (up from 3.6% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 9.7% p.a. on average during the next 3 years, compared to a 6.5% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 20% per year, which means it is well ahead of earnings. Announcement • Jul 06
Sonata Software Limited, Annual General Meeting, Jul 31, 2025 Sonata Software Limited, Annual General Meeting, Jul 31, 2025, at 16:00 Indian Standard Time. Declared Dividend • Jul 06
Dividend of ₹4.40 announced Shareholders will receive a dividend of ₹4.40. Ex-date: 23rd July 2025 Payment date: 30th August 2025 Dividend yield will be 1.1%, which is lower than the industry average of 1.7%. Sustainability & Growth Dividend is well covered by both earnings (29% earnings payout ratio) and cash flows (21% cash payout ratio). The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 56% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Announcement • Jul 06
Sonata Software Limited announces Annual dividend, payable on August 30, 2025 Sonata Software Limited announced Annual dividend of INR 4.4000 per share payable on August 30, 2025, ex-date on July 23, 2025 and record date on July 23, 2025. Announcement • May 20
Sonata Software Launches AgentBridge - A Managed Services Offering for Agentic Workflows Sonata Software announced the launch of AgentBridge, a breakthrough platform designed to accelerate AI-powered enterprise transformation. AgentBridge empowers organizations to centrally design, deploy, and govern intelligent AI agents across business functions--enabling secure, scalable, and efficient enterprise automation. Enterprises grapple with fragmented AI initiatives, siloed tools, and disconnected systems--leading to efficiencies and limited ROI. AgentBridge addresses these challenges through a unified multi-agent orchestration platform that enables creation, deployment, and lifecycle management of AI-powered workflows from a centralized, enterprise-grade marketplace. With built-in role-based access controls, LLM guardrails, and audit-ready logging, AgentBridge ensures robust security, compliance, and governance. Its modular, no-code interface empowers business and IT teams alike to build and scale AI agents with speed and confidence. Platform Highlights: Agent Marketplace: Discover, publish, and manage reusable AI agents through a functionally organized, compliance-aware catalog--with built-in analytics and monetization capabilities. Agent Builder: Visual, drag-and-drop designer featuring industry-specific blueprints, real-time debugging, and one-click marketplace publishing. Core Agent Logic: Configurable workflows supporting MCP, Agent-to-Agent (A2A) interactions, and full execution traceability. Integrations & Orchestrators: Seamless connectivity with leading Cloud providers, ERP systems, and enterprise databases. Observability & ROI Dashboards: Real-time telemetry, drift analytics, and embedded compliance tools for Responsible AI assurance. Cloud & Model Support: Secure access to hosted and private models across multi-cloud environments. With AgentBridge, Sonata continues to advance its vision of Responsible AI at Scale, delivering practical, high-impact innovation that helps enterprises become truly AI-native. This is the latest innovation from Sonata's Harmoni.ai - its responsible-first AI suite of solutions - to catalyze next step in AI-powered enterprise evolution. Price Target Changed • May 12
Price target decreased by 15% to ₹523 Down from ₹616, the current price target is an average from 7 analysts. New target price is 32% above last closing price of ₹397. Stock is down 21% over the past year. The company is forecast to post earnings per share of ₹18.76 for next year compared to ₹15.30 last year. Reported Earnings • May 10
Full year 2025 earnings: EPS in line with analyst expectations despite revenue beat Full year 2025 results: EPS: ₹15.30 (up from ₹11.12 in FY 2024). Revenue: ₹102.3b (up 19% from FY 2024). Net income: ₹4.25b (up 38% from FY 2024). Profit margin: 4.2% (up from 3.6% in FY 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 10% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 14% per year, which means it is well ahead of earnings. Announcement • May 01
Sonata Software Limited to Report Q4, 2025 Results on May 07, 2025 Sonata Software Limited announced that they will report Q4, 2025 results on May 07, 2025 New Risk • Apr 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.7% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.7% average weekly change). Buy Or Sell Opportunity • Apr 29
Now 22% overvalued Over the last 90 days, the stock has fallen 29% to ₹376. The fair value is estimated to be ₹308, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has declined by 6.1%. For the next 3 years, revenue is forecast to grow by 12% per annum. Earnings are also forecast to grow by 22% per annum over the same time period. Buy Or Sell Opportunity • Mar 03
Now 22% overvalued Over the last 90 days, the stock has fallen 43% to ₹370. The fair value is estimated to be ₹304, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 20% over the last 3 years. Earnings per share has declined by 6.1%. For the next 3 years, revenue is forecast to grow by 13% per annum. Earnings are also forecast to grow by 23% per annum over the same time period. Valuation Update With 7 Day Price Move • Feb 13
Investor sentiment deteriorates as stock falls 22% After last week's 22% share price decline to ₹429, the stock trades at a forward P/E ratio of 22x. Average forward P/E is 27x in the IT industry in India. Total returns to shareholders of 56% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹283 per share. Price Target Changed • Feb 08
Price target decreased by 7.6% to ₹661 Down from ₹715, the current price target is an average from 8 analysts. New target price is 35% above last closing price of ₹490. Stock is down 39% over the past year. The company is forecast to post earnings per share of ₹15.23 for next year compared to ₹11.12 last year. Reported Earnings • Feb 07
Third quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Third quarter 2025 results: EPS: ₹3.78 (up from ₹1.66 loss in 3Q 2024). Revenue: ₹28.4b (up 14% from 3Q 2024). Net income: ₹1.05b (up ₹1.51b from 3Q 2024). Profit margin: 3.7% (up from net loss in 3Q 2024). The move to profitability was driven by higher revenue. Revenue exceeded analyst estimates by 2.4%. Earnings per share (EPS) missed analyst estimates by 17%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 19% per year, which means it is well ahead of earnings. Announcement • Jan 31
Sonata Software Limited to Report Q3, 2025 Results on Feb 06, 2025 Sonata Software Limited announced that they will report Q3, 2025 results on Feb 06, 2025 Announcement • Dec 18
Sonata Software Launches Harmoni.Ai-Powered Test Acceleration Platform, Intellqa Sonata Software has launched IntellQA, a Harmoni.AI powered cutting-edge Testing automation and acceleration platform designed to transform software delivery for global enterprises. Modern Quality Assurance presents significant opportunity as enterprises grapple with challenges such as limited automation expertise, fragmented tools, escalating framework development costs, and constant script maintenance due to frequent application updates. Achieving comprehensive test coverage for intricate workflows also poses significant hurdles. Sonata's IntellQA equips enterprises to overcome these challenges, seamlessly embrace Agile and DevOps practices, and deliver high-quality software faster. By harnessing advanced Artificial Intelligence and Machine Learning capabilities, the platform integrates effortlessly with enterprise-grade tools like Jira, Azure DevOps, Xray, and CI/CD (Continuous Improvement/Continuous Development) pipelines. Key features of IntellQA include: Enhanced Product Quality: Scalable and customizable frameworks tailored to business needs. Cost Optimization: Streamlined workflows and reduced manual intervention for long-term savings. Responsible AI Framework: Ethical, efficient testing practices to address evolving regulatory and operational demands. AI and GenAI are impacting all aspect of the operations including software engineering practices. Sonata's Responsible-first AI solution, strengthened by partnerships with leading hyper-scalers and deep cross-industry expertise, is empowering organizations to unlock value of AI and GenAI across their entire enterprise. Recent Insider Transactions • Nov 30
Executive Vice Chairman recently sold ₹18m worth of stock On the 27th of November, Palem Reddy sold around 30k shares on-market at roughly ₹597 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth ₹33m. Palem has been a net seller over the last 12 months, reducing personal holdings by ₹76m. Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹635, the stock trades at a forward P/E ratio of 30x. Average forward P/E is 30x in the IT industry in India. Total returns to shareholders of 112% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹371 per share. Reported Earnings • Nov 07
Second quarter 2025 earnings released Second quarter 2025 results: Revenue: ₹21.9b (up 14% from 2Q 2024). Net income: ₹1.06b (down 14% from 2Q 2024). Profit margin: 4.9% (down from 6.5% in 2Q 2024). Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 24% per year, which means it is well ahead of earnings. Announcement • Oct 31
Sonata Software Limited to Report Q2, 2025 Results on Nov 06, 2024 Sonata Software Limited announced that they will report Q2, 2025 results on Nov 06, 2024 Recent Insider Transactions • Sep 04
Executive Vice Chairman recently sold ₹27m worth of stock On the 30th of August, Palem Reddy sold around 40k shares on-market at roughly ₹665 per share. This transaction amounted to 1.2% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Palem has been a net seller over the last 12 months, reducing personal holdings by ₹119m. Announcement • Aug 13
Sonata Software Limited Announces Cessation of Radhika Rajan as Independent Director Sonata Software Limited announced that consequent to the completion of the second term, Ms. Radhika Rajan ceased to be an Independent Director of the company with effect from the close of business hours of 12 August, 2024. Ms. Radhika Rajan was appointed as Independent Director for a second term of five consecutive years commencing from 13 August, 2019 to 12 August, 2024 at the 24th Annual General Meeting of the Company held on 7th August, 2019. Price Target Changed • Aug 09
Price target increased by 7.9% to ₹717 Up from ₹664, the current price target is an average from 6 analysts. New target price is 19% above last closing price of ₹602. Stock is up 16% over the past year. The company is forecast to post earnings per share of ₹18.60 for next year compared to ₹11.12 last year. Announcement • Jul 25
Sonata Software Limited to Report Q1, 2025 Results on Jul 31, 2024 Sonata Software Limited announced that they will report Q1, 2025 results on Jul 31, 2024 Reported Earnings • Jul 16
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: ₹11.12 (down from ₹16.29 in FY 2023). Revenue: ₹86.1b (up 16% from FY 2023). Net income: ₹3.09b (down 32% from FY 2023). Profit margin: 3.6% (down from 6.1% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 27%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 7.7% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 15
Sonata Software Limited, Annual General Meeting, Aug 06, 2024 Sonata Software Limited, Annual General Meeting, Aug 06, 2024, at 14:30 Indian Standard Time. Declared Dividend • Jul 15
Final dividend of ₹4.40 announced Shareholders will receive a dividend of ₹4.40. Ex-date: 26th July 2024 Payment date: 5th September 2024 Dividend yield will be 1.7%, which is about the same as the industry average. Sustainability & Growth Dividend is covered by both earnings (71% earnings payout ratio) and cash flows (86% cash payout ratio). The dividend has increased by an average of 25% per year over the past 10 years. However, payments have been volatile during that time. EPS is expected to grow by 107% over the next 3 years, which should provide support to the dividend and adequate earnings cover. New Risk • Jul 12
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (8.0% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.6% net profit margin). Significant insider selling over the past 3 months (₹32m sold). Board Change • Jun 20
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Non-Executive Independent Director Sanjay Asher was the last independent director to join the board, commencing their role in 2019. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Jun 10
Insider recently bought ₹1.0m worth of stock On the 4th of June, Mohan Muthuraj bought around 2k shares on-market at roughly ₹504 per share. This transaction amounted to 13% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth ₹2.5m. Despite this recent purchase, insiders have collectively sold ₹116m more in shares than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹586, the stock trades at a forward P/E ratio of 29x. Average forward P/E is 27x in the IT industry in India. Total returns to shareholders of 132% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹355 per share. Recent Insider Transactions • May 25
Insider recently bought ₹1.1m worth of stock On the 21st of May, Mohan Muthuraj bought around 2k shares on-market at roughly ₹517 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold ₹88m more in shares than they bought in the last 12 months. Valuation Update With 7 Day Price Move • May 14
Investor sentiment deteriorates as stock falls 20% After last week's 20% share price decline to ₹509, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 25x in the IT industry in India. Total returns to shareholders of 151% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹353 per share. Price Target Changed • May 14
Price target decreased by 11% to ₹776 Down from ₹873, the current price target is an average from 5 analysts. New target price is 52% above last closing price of ₹509. Stock is up 6.8% over the past year. The company is forecast to post earnings per share of ₹20.17 for next year compared to ₹11.12 last year. Reported Earnings • May 08
Full year 2024 earnings: EPS misses analyst expectations Full year 2024 results: EPS: ₹11.12 (down from ₹16.29 in FY 2023). Revenue: ₹87.4b (up 17% from FY 2023). Net income: ₹3.09b (down 32% from FY 2023). Profit margin: 3.5% (down from 6.1% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 27%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 7.4% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 35% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 08
Sonata Software Limited Recommends Final Dividend for the Financial Year Ended March 31, 2024 Sonata Software Limited recommended a Final Dividend of INR 4.40/- per Equity share (440% on par value INR 1/-) for the financial year ended 31st March, 2024 and the Final Dividend is payable subject to the approval of shareholders at the ensuing Annual General Meeting (AGM). The dividend, subject to the approval of shareholders, will be dispatched /credited within 30 days from the date of ensuing AGM. Announcement • Apr 30
Sonata Software Limited to Report Q4, 2024 Results on May 07, 2024 Sonata Software Limited announced that they will report Q4, 2024 results on May 07, 2024 New Risk • Mar 24
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: ₹25m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.7% net profit margin). Significant insider selling over the past 3 months (₹25m sold). Recent Insider Transactions • Mar 23
Chief Technology Officer recently sold ₹9.2m worth of stock On the 18th of March, Rajsekhar Roy sold around 13k shares on-market at roughly ₹734 per share. This transaction amounted to 6.9% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹105m more than they bought in the last 12 months. Recent Insider Transactions • Feb 18
Insider recently sold ₹4.8m worth of stock On the 9th of February, Sujit Mohanty sold around 6k shares on-market at roughly ₹799 per share. This transaction amounted to 3.2% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹93m more than they bought in the last 12 months. New Risk • Feb 02
New minor risk - Earnings quality The company has large one-off items impacting its financial results. One-off items were 25% of the size of the rest of the company's trailing 12-month earnings before tax. This is considered a minor risk. One-off items are incomes or expenses that the company does not expect to repeat in future periods. Examples include profits from the sale of a business or expenses from a restructuring or legal settlements. If the company's reported statutory earnings include a large proportion of one-off items it means they may be an unreliable indicator of its true business performance as the earnings were skewed by these incomes or expenses. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (3.7% net profit margin). Significant insider selling over the past 3 months (₹61m sold). Reported Earnings • Feb 02
Third quarter 2024 earnings: EPS and revenues miss analyst expectations Third quarter 2024 results: ₹1.66 loss per share (down from ₹4.24 profit in 3Q 2023). Revenue: ₹25.1b (up 11% from 3Q 2023). Net loss: ₹461.6m (down 139% from profit in 3Q 2023). Revenue missed analyst estimates by 9.1%. Earnings per share (EPS) were also behind analyst expectations. Revenue is forecast to grow 15% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 71% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jan 24
Sonata Software Limited to Report Q3, 2024 Results on Feb 01, 2024 Sonata Software Limited announced that they will report Q3, 2024 results on Feb 01, 2024 Price Target Changed • Dec 14
Price target increased by 17% to ₹722 Up from ₹615, the current price target is an average from 4 analysts. New target price is 7.1% below last closing price of ₹777. Stock is up 187% over the past year. The company is forecast to post earnings per share of ₹19.08 for next year compared to ₹16.29 last year. Valuation Update With 7 Day Price Move • Dec 05
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₹1,463, the stock trades at a forward P/E ratio of 33x. Average forward P/E is 26x in the IT industry in India. Total returns to shareholders of 506% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at ₹773 per share. Price Target Changed • Nov 24
Price target increased by 8.7% to ₹1,314 Up from ₹1,209, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of ₹1,294. Stock is up 134% over the past year. The company is forecast to post earnings per share of ₹39.09 for next year compared to ₹32.58 last year. Recent Insider Transactions • Nov 07
Executive Vice Chairman recently sold ₹61m worth of stock On the 3rd of November, Palem Reddy sold around 50k shares on-market at roughly ₹1,217 per share. This transaction amounted to 2.9% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. This was Palem's only on-market trade for the last 12 months. Upcoming Dividend • Oct 31
Upcoming dividend of ₹7.00 per share at 1.4% yield Eligible shareholders must have bought the stock before 07 November 2023. Payment date: 24 November 2023. Payout ratio is a comfortable 46% and this is well supported by cash flows. Trailing yield: 1.4%. Within top quartile of Indian dividend payers (1.4%). Lower than average of industry peers (1.8%). Announcement • Oct 26
Sonata Software Limited Approves Interim Dividend for the Financial Year 2023-24, Payable on 7 November, 2023 Sonata Software Limited at its board meeting held on 25th October 2023, Declared an Interim Dividend of INR 7 per share (700% on par value of INR 1/-) for the financial year 2023-24. The Record date for the purpose of payment of the Interim Dividend will be on 7th November, 2023. The Interim Dividend will be paid to the registered shareholders on or after Wednesday, 22nd November, 2023 through Electronic mode or by dividend warrants, as applicable. Reported Earnings • Oct 26
Second quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Second quarter 2024 results: EPS: ₹8.96 (up from ₹8.13 in 2Q 2023). Revenue: ₹19.4b (up 29% from 2Q 2023). Net income: ₹1.24b (up 10% from 2Q 2023). Profit margin: 6.4% (down from 7.5% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.9%. Earnings per share (EPS) exceeded analyst estimates by 4.0%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has increased by 67% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 18
Sonata Software Limited to Report Q2, 2024 Results on Oct 25, 2023 Sonata Software Limited announced that they will report Q2, 2024 results on Oct 25, 2023 Price Target Changed • Oct 11
Price target increased by 9.1% to ₹1,163 Up from ₹1,066, the current price target is an average from 3 analysts. New target price is 7.6% above last closing price of ₹1,081. Stock is up 110% over the past year. The company is forecast to post earnings per share of ₹41.58 for next year compared to ₹32.58 last year. Announcement • Sep 08
Sonata Software Limited Appoints Sharmila Sherikar as Senior Vice President and Head of Corporate Development Sonata Software Limited has announced the appointment of Sharmila Sherikar as Senior Vice President and Head of Corporate Development. Sharmila joined Sonata Software Limited with more than three decades of industry experience in change management and corporate development programs. She is adept at managing large organizational restructuring programs and brings in-depth knowledge in anchoring and executing transformation initiatives for strategic corporate goals. She possesses extensive familiarity in leading change management during acquisitions & mergers and building capabilities & talent during high growth phase. As an Executive Leadership Team member and in her role, Sharmila will drive Sonata's strategic corporate cross-functional change programs. Announcement • Aug 01
Sonata Software Limited Declares Final Dividend for the Financial Year 2022-23, Payable on or After August 8, 2023 Sonata Software Limited at its AGM held on July 31, 2023 declared the final dividend of INR 8.75 per equity share (i.e. 875%) for the financial year 2022-23.The dividend declared at the Meeting will be credited to the members accounts on or after August 8, 2023. Announcement • Jul 26
Sonata Software Limited Announces the Launch of Harmoni.AI Sonata Software Limited announced the launch of Harmoni.AI, a Responsible-first AI offering with a bouquet of Industry solutions, service delivery platforms, and accelerators using generative artificial intelligence (AI). Generative AI is one of the most recent artificial intelligence developments. The trained AI models generate original, human-like content based on massive training datasets and neural network technology. Sonata's `Responsible by Design' approach ensures uncompromising ethics, trust, privacy, security, and compliance. It will amplify the potential of humans, enterprises, and communities to tap into the next generation of opportunities to create value from unparalleled innovations, connected ecosystems, and pervasive efficiencies. Sonata's Harmoni.AI is a holistic "Responsible by Design" platform for generative AI. A Data Governance and Acceleration engine backs it with a choice of using Industry Leading LLMs and a consulting framework to enable effective adoption and faster time to market. Sonata has built 6 Service delivery platforms, Industry Use cases, and Acceleration BOTs. It is doing pilots with multiple customers, including Fortune 500 clients, particularly in the areas of Healthcare and Life Sciences, Consumer Products & Retail, Telecom, Media & Technology, and Banking and Financial Services. Sonata has established Harmoni.AI Academy, to train engineers on `Responsible-First by Design' approach and around 20% of its Engineers are involved on AI initiatives to enable clients to leverage the potential of generative AI in a trusted, secure, and governed framework. Announcement • Jul 24
Sonata Software Limited to Report Q1, 2024 Results on Jul 29, 2023 Sonata Software Limited announced that they will report Q1, 2024 results at 4:00 PM, Indian Standard Time on Jul 29, 2023 Upcoming Dividend • Jul 14
Upcoming dividend of ₹8.75 per share at 1.5% yield Eligible shareholders must have bought the stock before 21 July 2023. Payment date: 30 August 2023. Payout ratio is a comfortable 48% but the company is paying out more than the cash it is generating. Trailing yield: 1.5%. Within top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (2.0%). Reported Earnings • Jul 12
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: ₹32.58 (up from ₹27.17 in FY 2022). Revenue: ₹74.5b (up 34% from FY 2022). Net income: ₹4.52b (up 20% from FY 2022). Profit margin: 6.1% (down from 6.8% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 3.2%. Revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 8.3% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 78% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 08
Sonata Software Limited, Annual General Meeting, Jul 31, 2023 Sonata Software Limited, Annual General Meeting, Jul 31, 2023, at 10:00 Indian Standard Time. Agenda: To consider the Audited Financial Statements of the Company for the Financial Year ended March 31, 2023 together with the Reports of the Directors and Auditors thereon; to consider Declaration of dividend; to consider Appointment of Mr. Viren Raheja as a Director liable to retire by rotation; to consider and approve the amendment to the Employee Stock Option Plan, 2013 of the Company and to authorise the ESOP Trust to purchase or acquire equity shares of the Company; and to consider other business matters. New Risk • Jun 30
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: ₹17m This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (41% accrual ratio). Minor Risks Dividend is not well covered by cash flows (96% cash payout ratio). Significant insider selling over the past 3 months (₹17m sold). Recent Insider Transactions • May 25
Insider recently sold ₹4.9m worth of stock On the 18th of May, Sujit Mohanty sold around 5k shares on-market at roughly ₹914 per share. This transaction amounted to 4.9% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹38m more than they bought in the last 12 months. Price Target Changed • May 17
Price target increased by 9.8% to ₹829 Up from ₹755, the current price target is provided by 1 analyst. New target price is 13% below last closing price of ₹958. Stock is up 91% over the past year. The company posted earnings per share of ₹32.58 last year. Reported Earnings • May 14
Full year 2023 earnings: EPS and revenues exceed analyst expectations Full year 2023 results: EPS: ₹32.58 (up from ₹27.17 in FY 2022). Revenue: ₹75.2b (up 35% from FY 2022). Net income: ₹4.52b (up 20% from FY 2022). Profit margin: 6.0% (down from 6.8% in FY 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 3.2%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 8.6% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 23% per year but the company’s share price has increased by 85% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 13
Sonata Software Limited Recommends Final Dividend for the Financial Year Ended 31 March, 2023 Sonata Software Limited at the board meeting, the board has recommended a Final Dividend of INR 8.75 per Equity share (875% on par value INR 1) for the financial year ended 31 March, 2023 and the Final Dividend is payable subject to the approval of shareholders at the ensuing Annual General Meeting (AGM). The dividend, subject to the approval of shareholders, will be dispatched /credited within 30 days from the date of ensuing AGM. Recent Insider Transactions • Mar 01
Insider recently sold ₹1.6m worth of stock On the 23rd of February, Roja Panchangam sold around 2k shares on-market at roughly ₹721 per share. This transaction amounted to 18% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹34m more than they bought in the last 12 months. Price Target Changed • Feb 23
Price target increased by 8.6% to ₹652 Up from ₹601, the current price target is an average from 5 analysts. New target price is 10% below last closing price of ₹728. Stock is up 39% over the past year. The company is forecast to post earnings per share of ₹31.48 for next year compared to ₹27.17 last year. Reported Earnings • Jan 25
Third quarter 2023 earnings: EPS and revenues miss analyst expectations Third quarter 2023 results: EPS: ₹8.48 (up from ₹7.05 in 3Q 2022). Revenue: ₹22.8b (up 23% from 3Q 2022). Net income: ₹1.18b (up 21% from 3Q 2022). Profit margin: 5.2% (down from 5.3% in 3Q 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 8.1%. Earnings per share (EPS) also missed analyst estimates by 13%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 10.0% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has increased by 33% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Dec 28
Sonata Software Limited to Report Q3, 2023 Results on Jan 24, 2023 Sonata Software Limited announced that they will report Q3, 2023 results on Jan 24, 2023 Recent Insider Transactions • Nov 27
Chief Delivery Officer recently sold ₹16m worth of stock On the 25th of November, P. V. S. Raju sold around 30k shares on-market at roughly ₹537 per share. This transaction amounted to 19% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹29m more than they bought in the last 12 months. Board Change • Nov 16
Less than half of directors are independent No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 6 highly experienced directors. 3 independent directors (4 non-independent directors). Non-Executive Independent Director Sanjay Asher was the last independent director to join the board, commencing their role in 2019. The following issues are considered to be risks according to the Simply Wall St Risk Model: Minority of independent directors. Insufficient board refreshment. Upcoming Dividend • Oct 24
Upcoming dividend of ₹7.00 per share Eligible shareholders must have bought the stock before 31 October 2022. Payment date: 17 November 2022. Payout ratio is a comfortable 55% but the company is paying out more than the cash it is generating. Trailing yield: 1.6%. Within top quartile of Indian dividend payers (1.6%). Lower than average of industry peers (1.9%). Reported Earnings • Oct 19
Second quarter 2023 earnings released: EPS: ₹8.13 (vs ₹6.58 in 2Q 2022) Second quarter 2023 results: EPS: ₹8.13 (up from ₹6.58 in 2Q 2022). Revenue: ₹15.1b (up 56% from 2Q 2022). Net income: ₹1.13b (up 24% from 2Q 2022). Profit margin: 7.5% (down from 9.5% in 2Q 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 9.5% p.a. on average during the next 3 years, compared to a 9.9% growth forecast for the IT industry in India. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 19
Sonata Software Limited Declares an Interim Dividend, Payable on or After 14 November, 2022 Sonata Software Limited declared an Interim Dividend of INR 7.00 per share (700 % on par value of INR 1) for the financial year 2022-23. The Record date for the purpose of payment of the Interim Dividend will be on 1 November, 2022. The Interim Dividend will be paid to the registered shareholders on or after 14 November, 2022 through Electronic mode or by dividend warrants, as applicable. Announcement • Oct 01
Sonata Software Limited to Report Q2, 2023 Results on Oct 18, 2022 Sonata Software Limited announced that they will report Q2, 2023 results at 3:30 PM, Indian Standard Time on Oct 18, 2022 Recent Insider Transactions • Aug 19
Chief Delivery Officer recently sold ₹6.6m worth of stock On the 16th of August, P. V. S. Raju sold around 10k shares on-market at roughly ₹691 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹121m more than they bought in the last 12 months. Announcement • Jul 27
Sonata Software Limited Reconstitutes Risk Management Committee Sonata Software Limited announced that Risk Management Committee of the Board has been reconstituted with Mr. Pradip P Shah as Chairperson, Mr. Viren Raheja, Mr. P Srikar Reddy and Mr. Samir Dhir as Members effective July 25, 2022. Reported Earnings • Jul 26
First quarter 2023 earnings: EPS and revenues exceed analyst expectations First quarter 2023 results: EPS: ₹10.37 (up from ₹8.35 in 1Q 2022). Revenue: ₹18.0b (up 42% from 1Q 2022). Net income: ₹1.08b (up 24% from 1Q 2022). Profit margin: 6.0% (down from 6.8% in 1Q 2022). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 10%. Earnings per share (EPS) also surpassed analyst estimates by 34%. Over the next year, revenue is forecast to grow 17%, compared to a 13% growth forecast for the industry in India. Over the last 3 years on average, earnings per share has increased by 14% per year but the company’s share price has increased by 29% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jul 05
Sonata Software Limited to Report Q1, 2023 Results on Jul 25, 2022 Sonata Software Limited announced that they will report Q1, 2023 results on Jul 25, 2022 Recent Insider Transactions • Jun 19
Insider recently sold ₹1.4m worth of stock On the 14th of June, Ejantkar Sheela sold around 2k shares on-market at roughly ₹684 per share. In the last 3 months, there was an even bigger sale from another insider worth ₹5.1m. Insiders have been net sellers, collectively disposing of ₹120m more than they bought in the last 12 months. Upcoming Dividend • Jun 08
Upcoming dividend of ₹13.00 per share Eligible shareholders must have bought the stock before 15 June 2022. Payment date: 24 July 2022. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 3.0%. Within top quartile of Indian dividend payers (1.8%). Higher than average of industry peers (1.8%). Reported Earnings • Jun 05
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: ₹36.22 (up from ₹23.48 in FY 2021). Revenue: ₹55.5b (up 31% from FY 2021). Net income: ₹3.76b (up 54% from FY 2021). Profit margin: 6.8% (up from 5.8% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 4.6%. Earnings per share (EPS) also surpassed analyst estimates by 6.0%. Over the next year, revenue is forecast to grow 22%, compared to a 15% growth forecast for the industry in India. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 25% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Jun 04
Sonata Software Limited Proposes Final Dividend for the Financial Year Ended March 31, 2022 Sonata Software Limited proposed to declare final dividend of INR 13 per equity share (on an equity share of par value of INR 1 each) for the Financial Year ended March 31, 2022 and to confirm Interim Dividend of INR 8 per equity share, already paid, for the Financial Year ended March 31, 2022 in the Annual General Meeting to be held on June 24, 2022. The Company has fixed June 16, 2022 as the Record Date and the Register of Members of the Company will be closed from June 17, 2022 to June 23, 2022 (both dates inclusive), for determining entitlement of members to final dividend for the financial year ended March 31, 2022, if approved at the AGM.