Sonata Software shares plunge 13%; here's what is worrying investors

Sonata Software shares tumbled 13.4 per cent in Thursday's (April 17, 2025) trade, registering an intraday low at ₹290 per share on BSE. The stock hovered near its 52-week low of ₹286.4 per share. The selling on the counter can be attributed to the company expecting lower revenue estimates for Q4 2024-25 from its largest client.

 

Around 9:47 AM, Sonata Software share price was down 8.68 per cent at ₹306.15 per share on BSE. In comparison, the BSE Sensex was down 0.01 per cent at 77,033.17. The market capitalisation of the company stood at ₹8,585.21 crore. The 52-week high of the stock was at ₹762 per share and the 52-week low was at ₹286.4 per share.   READ STOCK MARKET LIVE UPDATES HERE

 

"We would like to inform you that 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 February 6, 2025," the filing read.  

ALSO READ | Sonata Software tanks 19%, stock hits 52-week low on muted Q3 earnings

 

In Q3, Sonata reported revenue of ₹2,843 crore up 31 per cent quarter-on-quarter (Q-o-Q) and up 14 per cent year-on-year (Y-o-Y). The company reported earnings before interest, tax, depreciation and amortization (Ebitda) of ₹164 crore, down by 7.7 per cent Q-o-Q with an Ebitda margin of 5.8 per cent, down 240 basis points (bps) sequentially.   

 

In the quarter ended December 31, 2025, Sonata’s international business delivered 4.4 per cent (CC) Q-o-Q growth and Ebitda drop due to one time cost items. During the quarter, the company said they won two large deals, its first multi-million-dollar deal on Microsoft Fabric, and for Gen AI modernization. The management said they remain optimistic about the company’s long-term vision and growth prospects.  ALSO READ | Wipro shares dip 6% on disappointing Q4 results; weak Q1 guidance

 

Sonata Software is an Indian information technology (IT) services company headquartered in Bengaluru, Karnataka. It specialises in digital transformation services, including cloud and data modernization, enterprise mobility, and application development. The company serves clients across sectors such as BFSI, healthcare, telecom, and retail. 

 

In the past one year, Sonata Software shares have lost 50.7 per cent as compared to Sensex's rise of 6 per cent. 

ALSO READ: Sonata Software tanks 19%, stock hits 52-week low on muted Q3 earnings