- 17 Apr 2025
- ICICIdirect Research
SONATA SOFTWARE HAS ANNOUNCED THAT Q4 FY25 REVENUE FROM ITS LARGEST CLIENT IS EXPECTED TO BE LOWER THAN PREVIOUSLY ESTIMATED
SONATSOFTW - 398 Change: 0.30 (0.08 %)News: The company has announced that Q4 FY25 revenue from its largest client is expected to be lower than previously estimated, impacting overall international business performance for the quarter.
View: In Q3 FY25, Sonata’s International business (~26% of revenue mix) witnessed a sharp margin decline driven by an unplanned ramp-down of a large TMT client, a one-time discount, salary hikes, and employee settlements. At the time, the company projected a 2.5–3.5% revenue dip in Q4, with recovery anticipated by late Q4 or Q1. However, with the latest update indicating that revenue estimates from its largest client are now expected to be lower than anticipated, the Q4 outlook has further weakened. This suggests a slower-than-expected recovery in the International segment, and while some margin rebound may still occur, full stabilization is now likely to be pushed into FY26.
Impact: Negative