Sonata Software, a global IT services and technology solutions company, has reported a consolidated revenue of ₹2,965 crore for Q1 FY26, marking a significant leap forward in its AI-powered digital transformation strategy. The results reflect a 17% quarter-on-quarter (QoQ) growth in Profit After Tax (PAT), according to its official earnings release. The company also declared its first interim dividend of ₹1.25 per share for the financial year.

The robust performance is largely attributed to a series of new multi-million-dollar AI transformation deals secured during the quarter, including a standout $73 million contract that the company highlighted as one of the largest in its history. This project involves a long-term AI-led digital transformation engagement for a global client, indicating Sonata’s growing influence in enterprise AI.

AI as a Key Growth Driver

Sonata Software’s leadership emphasized the role of Artificial Intelligence as a central pillar of its growth trajectory. The company’s platform-led approach under the "Platformation™" framework—its proprietary digital transformation model—was enhanced with AI capabilities during the quarter, enabling Sonata to drive enterprise automation, predictive analytics, and business model innovation.

The company noted an uptick in demand for AI-infused services across retail, manufacturing, and BFSI verticals. These AI deployments include solutions such as intelligent supply chain analytics, customer engagement platforms powered by generative AI, and AI-enabled decision support systems.

Pawan Kumar, CEO and Managing Director at Sonata Software, said in a statement, “We are seeing strong traction for our AI offerings globally. The $73 million deal win is testimony to our capabilities and the trust our clients place in us to lead their digital transformation journeys. We will continue to invest in AI talent and innovation to stay ahead of the curve.”

Financial Highlights

• Consolidated revenue for Q1 FY26 stood at ₹2,965 crore.
• PAT rose 17% QoQ, indicating solid operational efficiency.
• EBITDA margins remained stable, supported by cost optimization and platform reuse.
• Dividend of ₹1.25 per share announced as the first interim payout of the year.

The company also highlighted a strong pipeline of AI-led deals for the rest of FY26, projecting continued double-digit growth in the next two quarters. Its consistent investments in AI labs, CoEs (centers of excellence), and talent development are also expected to contribute to long-term margin expansion.

Industry Momentum and Analyst Views

Sonata Software’s AI strategy is in line with broader industry trends. According to recent Gartner forecasts, global AI spending is expected to surpass $200 billion in 2025, with enterprise AI adoption accelerating across every sector.

Analysts believe Sonata’s momentum in AI aligns with the market's growing preference for outcome-based, AI-powered transformation initiatives. “Sonata is positioning itself as a serious AI contender by securing deals that go beyond proof-of-concepts. The $73 million contract is a game-changer and sets a precedent for mid-sized IT firms expanding their AI portfolio,” said an industry analyst tracking the sector.

Strategic Investments

During the quarter, Sonata Software also deepened its partnerships with key AI platform providers and cloud hyperscalers. It invested in training programs focused on prompt engineering, machine learning ops, and LLM deployment frameworks. The company’s AI services are now integrated with multiple vertical-specific accelerators to shorten time-to-value for clients.

Furthermore, Sonata reaffirmed its commitment to responsible AI by aligning its development practices with global ethical AI standards, including explainability, fairness, and data privacy.

Outlook for FY26

Looking ahead, the company expects to maintain its AI-led growth trajectory, backed by an expanding global footprint and a surge in enterprise demand for intelligent automation. With a healthy order book and a sharpened focus on AI innovation, Sonata aims to cross key revenue milestones in the coming quarters.

As AI reshapes enterprise operations and customer experiences globally, Sonata Software appears to be capitalizing on the shift, leveraging both technological depth and domain-specific expertise.