Explained: Why are Sonata Software shares up 38% in 4 trading days?

Sonata Software share price today

 

Share price of Sonata Software continued their upward movement on the BSE today, soaring 10 per cent to ₹464.20 in Friday's intraday trade, amid heavy volumes. The stock price of the computer software & consulting company bounced back 15 per cent from its intraday low of ₹402.85. Moreover, it is quoting higher for the fourth straight trading day, surging 38 per cent during the period. In the past nine trading days, it zoomed 60 per cent from level of ₹290 on April 17, 2024.

 

However, despite the recent rally, Sonata Software has underperformed the market in the past six months by declining 25 per cent, as compared to 1.9 per cent rise in the BSE Sensex.

 

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At 12:36 PM, the stock was quoting 8 per cent higher at ₹457.65 as compared to 0.01 per cent rise in the BSE Sensex. The average trading volume on the counter jumped over three-fold with a combined 35.59 million equity shares, representing 12.7 per cent of the total equity of Sonata Software, changing hands on the NSE (33.43 million shares) and BSE (2.17 million shares), data shows.

 

Sonata Software secures a $73 million AI-led deal

 

On April 28, 2025, Sonata Software announced that it has secured a $73-million, five-year transformational engagement with a major US-based company in the Technology, Media, and Telecom (TMT) sector.

 

Under this engagement, Sonata will establish a dedicated AI-enabled Modernisation Engineering Center in India. The program will cover critical areas, including platform engineering, cloud transformation (Amazon Cloud), enterprise systems (Salesforce, Workday), cybersecurity, data services, and modern application development—all built on a foundation of automation and scalable engineering practices.

 

"This multi-year partnership marks a pivotal step in the client's digital strategy to enhance global scalability, accelerate innovation, and optimise IT operations through a strategic, AI-first outsourcing model. Sonata was chosen as the partner because of its deep engineering expertise, nimble delivery model, and proven track record in driving AI-powered business transformation," the company said in a press release. 

 

Meanwhile, in a separate filing on April 30, Sonata Software informed the stock exchange that it has achieved Amazon Web Services (AWS) DevOps Competency status. This designation will distinguish Sonata Software as a member of the AWS Partner Network that provides specialized consulting services and tailored solutions to help enterprises adopt, develop, and deploy complex DevOps projects on AWS, accelerating their time to market.

 

IDBI Capital on Sonata Software  

Analysts at the brokerage firm believe that H1FY26 will be better than H2FY25 for Sonata Software on the back of a strong order book & AI deals. The management aspires to achieve three goals which include winning large deals, higher operational efficiency in merger & acquisition (M&A), and building strong partnership with hyper-scalers. Furthermore, the management's expectation of achieving $1.5 billion revenue-mark is deferred by the end of FY27 and margin to be dilutive in near-term. However, analysts in the Q3FY25 result update said that they remain positive on Sonata software for the long term.

 

Brokerage view - KRChoksey Shares and Securities on Sonata Software

 

Despite the near-term headwinds, analysts believe this represents a temporary setback, given Sonata Software's strategic expansion into AI-driven modernization, cloud transformation, and enterprise partnerships. The company’s cost optimization measures and operational efficiencies are expected to aid in margin stabilization, supporting long-term growth. “While we remain cautiously optimistic, we will closely monitor the pace of margin recovery and revenue stabilization in the coming quarters,” the brokerage firm said in the Q3 result update.

 

Q4 results: date, time

 

The board of directors of Sonata Software is scheduled to meet on May 7, 2025 to consider, approve and take on record the audited financial results of the company for the quarter and financial year ended March 31, 2025. The board will also consider and declare a final dividend, if any, for the financial year 2024-25.

 

About Sonata Software

 

Sonata Software, with $1 billion revenue, is the leading Modernisation company. Headquartered in Bengaluru, India, Sonata Software has a strong global presence, including key regions North America, UK, Europe, APAC, and ANZ.

 

The company is one of the fastest growing IT Services companies and partner of Fortune 500 companies in Banking, Financial Services and Insurance (BFSI); Healthcare and Lifesciences (HLS); Telecom, Media, and Technology (TMT); and Retail, Manufacturing and Distribution (RMD) space.

 

Sonata Software boasts of a very strong partnership with Microsoft, AWS and many others. It is a member of Microsoft AI Partner Council and has also achieved AWS Generative AI Competency.