Sonata Software Ltd

Merger update

• Scheme of Arrangement and Amalgamation with Encore IT Services Solutions Private Limited became effective on 14 August 2026.
• RoC approved Form No. INC-28 on 25 August 2026 for the merger.
• Appointed Date of the Scheme is 1 April 2024.
• Merger involves a wholly-owned subsidiary; no fresh equity shares issued.
• There is no impact on issued, subscribed and paid-up capital.
• Transferor and transferee are Encore IT Services Solutions Private Limited and Sonata Software Limited.

Analyst meeting details

• Date/time/participant: 18 Aug 2026, 12:30–1:30 IST, virtual meeting with Invesco Asset Management (India) Pvt. Ltd.; no UPSI disclosed.

Appointment

• Appointment announced Aug 17, 2026; Hari Rebala named Chief AI Officer.
• Leads AI-led transformation across Sonata's offerings, platforms, capabilities, ecosystem, and partnerships.
• Brings 30+ years in IT services and AI; previously Chief of AI Solutions and Growth.

Meeting Details

• Date: August 7, 2026; virtual group Analyst/Investor conference call.

Participants

• Key company participants: CEO of International Services; CEO of Domestic Business; CFO.

Purpose

• Discuss Q1 FY2027 results and AI-native strategy updates; investor interaction.

Additional Notes

• Call was recorded; transcript enclosed; presentation available on the company IR site.

Meeting details

• Date: 7 August 2026; time not disclosed.
• Type: Analyst/Investor call; mode not specified.
• Organiser: Sonata Software Limited.

Purpose

• Purpose: Audio recording of Analyst/Investor call.

Availability

• Recording uploaded on the company's investor relations site.

Meeting Details

• Date: 12 August 2026
• Time: 11:00 AM – 5:00 PM IST
• Mode: Physical
• Place: Mumbai
• Organizer: Emkay Global Confluence Conference
• Meeting type: Group meeting with analysts/institutional investors

Purpose

• Purpose: Group investor interaction; discussions to reference publicly available information only.

Business Overview

• IT services firm delivering AI-first enterprise transformation and cloud-enabled solutions.
• Key verticals: TMT, Retail & Mfg, Healthcare, BFSI.
• Strategic focus on Harmoni.AI and AI-native service delivery.
• Global delivery model; strong Microsoft partnerships; 3500+ team, 400+ clients.

Operational Highlights

• Q1 FY27 intl services revenue up 11% YoY; domestic up 10.2% YoY.
• Won one key Q1 deal: US AI-led legacy modernization for beverage client.
• AI-led pipeline at USD 340M; AI revenue USD 21.73M, QoQ +27%.
• Microsoft alliance: 360-degree partnership; 3,500+ team on Microsoft tech.
• Book-to-bill 1.18x; utilization around 88.5%; total employees about 6,293.

Financial Performance

• Consolidated revenue INR 3279.1 cr; USD 346.6M in Q1'27.
• International Services revenue INR 777.2 cr; YoY growth 11%.
• Domestic revenue INR 2505.6 cr; YoY growth 10.1%.
• EBITDA (Before FX & OI) INR 179.0 cr; margin 5.5%.
• EBITDA (After FX & OI) INR 177.5 cr; margin 5.4%.
• PAT INR 108.1 cr; margin 3.3%.
• EPS INR 3.90; interim dividend 125% per share.
• Cash & equivalents INR 567 cr; consolidated net cash INR 67 cr.
• Book-to-bill 1.18x; onsite/offshore mix 30:70.

Capital Structure & Liquidity

• Interim dividend declared at 125% per share.
• Cash position at quarter-end INR 567 cr; net cash ~INR 67 cr.

Strategic Priorities & Outlook

• Strategy: AI-first enterprise transformation and Harmoni.AI platform.
• Strengthen AI-native service delivery and AI-enabled modernization offerings.
• Leverage Microsoft ecosystem partnerships to scale cloud and data capabilities.
• Sustainability focus: Net Zero by 2050; ESG-compliant suppliers.

Governance & Sustainability

• Sustainability targets: Net Zero by 2050; ESG-compliant Tier-1 suppliers.
• Single-use plastic-free certification achieved; UNGC signatory.

Dematerialisation processing and cancellation

• Dematerialisation requests received during the quarter ended June 2026 were confirmed to depositories; securities listed on exchanges.
• Dematerialisation certificates were mutilated and cancelled after verification; depository's name substituted as registered owner within 21 days.