Sonata Software sees Q4 revenue hit as top client pushes AI automation

Sonata Software's top client automating large parts of its outsourced business has led to a bigger-than-expected revenue fall and raised uncertainty over future growth

Sonata Software, a mid-tier information technology (IT) services provider, has said that revenue decline from its top client and cost pressure from clients due to uncertain macro impacted the fourth quarter of financial year 2024-25 (Q4FY25).

 

This has caused a huge amount of uncertainty going forward as Sonata is not sure if its customer will look to automate other parts of its outsourced business too, which can further lower its revenue and damage growth prospects.

 

Sonata’s announcement by an Indian IT service provider calling out on revenue loss due to increasing automation efforts taken by a client. Sonata has also