Sonata Software pushes $1.5 billion revenue goal to FY27
Sonata Software has pushed its $1.5 billion revenue target by a year to fiscal 2027, its top executive told ET.
This indicates the slowdown in technology demand is also impacting mid-sized outsourcing firms which have been growing faster than their larger rivals like Tata Consultancy Services, Infosys, HCLTech and Wipro.
“We have called out that we want to be $1.5 billion revenue by FY27. That's our long-term goal. Given the market condition, we diluted it (from earlier target of achieving it by FY26 ending March 2026) by 2-4 quarters now,” managing director and chief executive Samir Dhir said.
The Bengaluru-headquartered IT services firm surpassed $1 billion in consolidated revenue in the last fiscal year ended March 31. In its June quarter investor presentation, the company said it expects to add $500 million to the revenue in three-four years.
For Q1, Sonata Software reported a 12% year-on-year and 4.3% sequential increase in net profit to Rs 105.6 crore. Revenue rose 25% YoY and 15.3% QoQ to Rs 2,527.4 crore. The performance was primarily driven by its domestic business.
“As the IT sector globally picks up, the IT companies will start to acquire more licenses, more products, etc., going forward, which will take another two-three quarters. By Q4 or Q1, we will see growth coming back in the IT and ITes segment as well,” he said.
Sonata generates over two-third of revenue from the domestic products licensing and related services and the remaining from the international IT services across four major verticals:
