On a consolidated basis, Sonata Software's revenue rose 31% QoQ to Rs 2842.8 crore in Q3’25. Profit after tax (PAT) for Q3’25 stood at Rs 105 crore, quarter-on-quarter (QoQ) de-growth of 1.4%. EBITDA for Q3’25 was Rs 163.6 crore, QoQ de-growth of 7.8%. EBITDA margin fell to 5.8% in Q3'25 as against 8.2% in Q2'25.
Sonata Software faced an unplanned ramp-down and gave a one-time discount to a major hi-tech client in Q3FY25, leading to a decline in the TMT (Technology, Media, and Telecom) vertical. The company expects a 'full-quarter impact' in Q4FY25 due to the ramp-down, projected to be a 'de-growth' quarter. The ramp-down also impacted Q3FY25 margins, as EBITDA saw a negative effect partially due to the one-time discount. A 'ramp down' refers to a gradual reduction in services or engagement with a client, potentially leading to contract termination.
In International IT Services segment, revenues for Q3’25 stood at Rs 731.7 crore, QoQ growth of 3.4%. Revenue for Q3’25 in USD were at 87 million, QoQ growth of 2.8% and YoY growth of 3.9%.
In Domestic Products & Services segment, gross contribution for Q3’25 were at Rs 81.9 crore, QoQ growth of 16.7%. Revenues for Q3’25 stood at Rs 2111.1 crore, QoQ growth of 44.4%.
Samir Dhir, MD & CEO of the company said, 'In Q3’25, our International business delivered 4.4%(CC) QoQ growth and EBIDTA drop due to onetime cost items. During the quarter, we won two large deals, our first multi-million-dollar deal on Microsoft Fabric, and for Gen AI modernization. We remain optimistic about our long-term vision and growth prospects of Sonata.'
Sujit Mohanty, MD & CEO of Sonata Information Technology said, 'We had one of our best quarter’s performances delivered in our Domestic Business during the quarter. We had good wins from New corporate customers and the defence sector during this quarter and we also have renewed all the large contracts with our customers for Software and Hyperscaler business. We also increased our Security Business with our existing clients during this quarter.'
Sonata Software has a strong global presence, including key regions US, UK, Europe, APAC, and ANZ. Its bouquet of modernization engineering services cuts across Cloud, Data, Dynamics, Contact Centers, and around newer technologies like Generative AI, MS Fabric, and other modernization platforms.