Sonata Software share price plunges 14% after THIS update on Q4 revenue; down 65% from peak

Sonata Software share price: Sonata Software saw its share price tumbled 14% in Thursday's trade, April 17, to reach ₹288 apiece after the company warned about a drop in revenue in fourth quarter of the last financial year.

In an filing to the exchanges on Wednesday, the company said that the revenue from its largest client to be lower in March quarter than the previously projected.

"The revenue estimates for Q4 2024-25 from our largest client are likely to be lower than anticipated, resulting in lower revenue from our international business for the said quarter than previously envisioned during the previous Analyst/Investor call held on 6th February 2025," the company said in its regulatory filing.

In the preceding December quarter (Q3FY25), the company reported a net profit of ₹105 crore as against a net loss of ₹46 crore in the same quarter of FY24. Its revenue from the operations have increased to ₹2,843 crore from ₹2,493 crore.

In Q3 FY25, Sonata Software’s vertical-wise revenue mix was led by the Banking, Financial Services, and Insurance (BFSI) sector, contributing 30% of total revenue. The Technology, Media, and Telecom (TMT) segment followed closely with 29%, while Retail and Manufacturing accounted for 25%. Healthcare and Life Sciences (HLS) made up 11%, and Emerging Verticals contributed the remaining 5%.

From a technology services perspective, cloud offerings led the mix with a 37% share, followed by data services at 26% and Microsoft Dynamics at 24%. Emerging technologies accounted for 12%, while other services made up 1%.

In terms of geographical mix within international services, the United States remained Sonata’s largest market, contributing 78% of international revenues. Europe and the Rest of the World each contributed 11%, highlighting the company’s strong North American focus.

Sonata Software share price crashes 65% from peak

Since reaching its record high of ₹870 apiece, Sonata Software share price has been sliding steadily, closing 12 out of the last 14 months in the red (including the current month), and losing 65% of its value. At current levels, the stock is trading at lows last seen in January 2023.

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