Sonata Software revenue grows 15 percent in Q2

Sonata Software Limited (NSE: SONATSOFTW) reported consolidated revenue of ₹2,445.2 crore in Q2 FY27, registering 15.4% YoY growth. However, consolidated net profit declined 3.2% to ₹116.4 crore, compared with ₹120.2 crore in the corresponding quarter last year. Key Highlights • Consolidated revenue increased 15.4% YoY to ₹2,445.2 crore. • EBITDA grew 3.9% to ₹179.5 crore. • Net profit declined 3.2% to ₹116.4 crore, but increased 7.7% sequentially. • International IT Services revenue grew 9.3% YoY in INR terms. • International services revenue grew 1.3% YoY in constant-currency terms. • Domestic Products & Services revenue increased 19% YoY to ₹1,655.6 crore. • Four new international customers were added during the quarter. • AI-led opportunities accounted for 25% of the company's total order book. My View Sonata Software delivered a mixed quarter. Domestic business growth and increasing AI-led opportunities are encouraging. The company is also strengthening its positioning in AI-led engineering and enterprise modernisation. However, profitability has not kept pace with revenue growth. EBITDA increased just 3.9%, while net profit remained below the previous year's level. International IT Services growth also remains modest when measured in constant-currency terms. Another point worth watching is the sharp sequential decline in consolidated revenue, largely reflecting the domestic business comparison. What I'm Watching Next I will monitor international services growth, EBITDA margins, AI-led order conversion and the performance of the domestic business. The key question is whether Sonata can translate its AI positioning and order pipeline into stronger, sustainable revenue and profit growth. Stance: Neutral to cautiously positive. Domestic growth and AI opportunities are encouraging, but international growth and profitability need improvement. Disclosure: I do not have any holding or position in the stock mentioned above. SONATSOFTW