Sonata Software532221Quarterly results

Board approves Q2 FY27 results, declares second interim dividend of Rs. 1.25 per share

Board approved unaudited standalone and consolidated results for the second quarter and half year ended 30th September, 2026.

By ScoutQuest · Thu 5 Nov 2026, 7:53 PM IST · 3 min read

Consolidated · ₹ lakh · EPS in ₹
Line item	Latest	Year ago	YoY	Prev qtr	QoQ
Revenue from operations	244,520	211,930	+15.4%	327,910	−25.4%
Total income	246,753	215,066	+14.7%	328,587	−24.9%
Profit before tax	15,732	16,359	−3.8%	13,709	+14.8%
Profit after tax	11,640	12,019	−3.2%	10,811	+7.7%
Total comprehensive income	8,836	12,053	−26.7%	16,010	−44.8%
Basic EPS	4.21	4.33	−2.8%	3.91	+7.7%

Basis of presentation: Consolidated results · figures in Lakhs
Total income: Latest 246,753; Year ago 215,066 (+14.7%); Prev qtr 328,587 (−24.9%)
Profit after tax: Latest 11,640; Year ago 12,019 (−3.2%); Prev qtr 10,811 (+7.7%)
Period: Quarter ended September 30, 2026 (Unaudited)

Also decided at the meeting

Declared a Second Interim Dividend of Rs. 1.25/- per equity share (125% on par value of Re. 1/-) for FY 2026-27; record date 11th November, 2026; payable on or after 20th November, 2026.
Changes to the contact details of KMPs authorised to determine materiality of events; Mr. Jagannathan C N, CFO, named single point of contact.

Auditor's review

Conclusion: Unmodified

Notes to the results

Year ended March 31, 2026 exceptional items: impairment loss on receivables 9,695, reversal of contingent consideration payable (6,538), impact of new labour codes 3,128 (₹ in lakhs).
NCLT approved merger of wholly-owned subsidiary Encore IT Services Solutions Private Limited with the Company, appointed date April 01, 2024, effective August 14, 2026; prior figures restated.

What the board approved

The unaudited financial results of the company, standalone and consolidated, for the second quarter and half year ended 30th September, 2026.
A Second Interim Dividend of Rs. 1.25/- per equity share for the financial year 2026-27, which works out to 125% on the par value of Re. 1/-.
Changes to the contact details of the Key Managerial Personnel authorised to decide the materiality of an event and make disclosures to the stock exchanges.

Dividend details

The record date for payment of the Second Interim Dividend is 11th November, 2026.
Payment will be made to registered shareholders on or after 20th November, 2026, through electronic mode only.
Dividend income is taxable in the hands of shareholders, so the payout will be made after deduction of tax at source.

Auditor's review conclusion

B S R & Co. LLP issued a Limited Review Report on both the standalone and the consolidated results. The conclusion is unmodified: nothing came to the auditor's attention that causes them to believe the statements are not prepared in line with the accounting standards and the listing regulations, or that they contain any material misstatement.

The standalone numbers (Rs in lakhs, as printed)

Revenue from operations: 38,794 for the quarter ended 30th September, 2026, against 30,775 in the restated year-earlier quarter; 83,243 for the half year, against 58,598.
Total income: 55,211 for the quarter and 98,651 for the half year.
Total expenses: 34,584 for the quarter and 73,494 for the half year.
Profit before tax: 20,627 for the quarter and 26,137 for the half year.
Profit for the period: 19,019 for the quarter, against 14,695 a year earlier, and 23,139 for the half year, against 16,983.
Basic and diluted earnings per share: 6.87 for the quarter and 8.36 for the half year.
Other income of 16,417 in the quarter includes dividend income received from subsidiaries: Sonata Information Technology Limited 12,000 lakh, Sonata Software Solutions Limited 2,500 lakh and Sonata Australia Pty Ltd 546 lakh.

Merger and restatement

Encore IT Services Solutions Private Limited, a wholly-owned subsidiary, has merged with the company. The scheme became effective on 14 August, 2026, with an appointed date of 1 April, 2024.
The merger was accounted using the pooling of interests method, so the previous period figures have been restated as if the merger had taken place from the beginning of the preceding period, 1 April, 2025.
The company states there is no material impact of the restatement on the comparative amounts presented.

Cash flow for the half year (standalone)

Net cash flow from operating activities: 2,300 lakh, against 2,591 lakh in the year-earlier period.
Net cash flow from investing activities: 15,392 lakh.
Net cash flow used in financing activities: 17,023 lakh, which includes payment of dividend of 15,243 lakh.
Closing cash and cash equivalents: 3,886 lakh.

Other points to note

The year ended 31st March, 2026 carried an 'Exceptional Item' arising from the new labour codes, made up of gratuity of 1,988 lakh and compensated absences of 632 lakh.
The consolidated review covers 14 subsidiaries that were not reviewed; the parent's management considers their interim results not material to the Group, and the auditor's conclusion is not modified on this.
The consolidated statement covers the parent plus 17 subsidiaries and step-down subsidiaries listed in the annexure.

What this update contains

The announcement combines a fresh quarterly result, a second interim dividend for the year and a clean limited review conclusion from the statutory auditors. The dividend is Rs. 1.25/- per equity share on a face value of Re. 1/-.

244,520 (₹ in lakhs)Revenue from operations, latest quarter

Total income, year-ago quarter215,066 (₹ in lakhs)

Total comprehensive income, quarter16,010 (₹ in lakhs)

Total comprehensive income, year-ago quarter12,053 (₹ in lakhs)

Revenue from operations, latest quarter 244,520 (₹ in lakhs): Total income, year-ago quarter 215,066 (₹ in lakhs), Total comprehensive income, quarter 16,010 (₹ in lakhs), Total comprehensive income, year-ago quarter 12,053 (₹ in lakhs).

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