Shares of Sonata Software surged 11.63% to ₹368.10 on Tuesday, marking a sharp rebound after seven consecutive sessions of decline. The rally came on the back of the company’s Q1 FY26 results announced on July 30, which showed resilient earnings growth despite sequential pressure in margins.
The global IT services and technology solutions company reported a 7.4% year-on-year increase in net profit to ₹113.4 crore in Q1 FY26, compared to ₹105.6 crore in the same quarter last year. Consolidated revenue rose 17.3% YoY to ₹2,965.2 crore from ₹2,527 crore, and 13.3% sequentially, indicating strong business momentum.
EBITDA (before other income and forex) came in at ₹159.6 crore, down 7.6% QoQ. Gross cash and cash equivalents stood at ₹600 crore, while net cash was negative at ₹62.5 crore. ROCE fell to 18.5% from 21.9% in Q4FY25, and RONW declined to 24% from 25.2%.
In its international IT services segment, revenue stood at $81.8 million (₹699.9 crore), down 0.3% QoQ in rupee terms. The domestic products & services segment posted ₹2,274.7 crore in revenue, up 18.6% QoQ, but gross contribution and profitability fell due to margin pressures.
The company announced an interim dividend of ₹1.25 per equity share for FY26, with a record date of August 8 and payment on or after August 20.
As of 11:18 AM, the stock traded at ₹368.10, up from its previous close of ₹329.75, valuing the company at ₹10,222 crore.
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