Share of Sonata Software Ltd is currently trading at around Rs.395/-Investors are asking for the Sonata Software Share Price Target for 2025, 2030, 2035 and 2040. In this article, we will discuss about the business prospects and financial performance of the Company and based on our discussion and analysis will tell you the Sonata Software Share Price Target for 2025, 2030, 2035 and 2040.
Discussion & Analysis of Business & Financial performance with future business prospects of Sonata Software Ltd:
📊 Current Business Position
Sonata Software Ltd has demonstrated resilience and strategic agility in a challenging macroeconomic environment. For FY2025, the company reported consolidated revenues of ₹10,157.2 crores, marking a robust 17.9% year-on-year growth. Despite sectoral headwinds, its PAT (Profit After Tax) surged by 37.6% YoY to ₹424.7 crores, reflecting strong operational efficiency and cost management.
The company’s business is divided into two key segments:
- International IT Services (IITS): This segment contributed ₹2,829.7 crores in revenue, growing 5.6% YoY. However, Q4FY25 saw a 4% sequential decline, attributed to client-specific issues and macroeconomic challenges in BFSI and Retail verticals2.
- Domestic Products & Services (DPS): This segment outperformed with a 23.4% YoY growth, driven by strong demand in India. DPS PAT stood at ₹178.1 crores, up 9% YoY.
Sonata’s diversification strategy has paid off, with Healthcare and BFSI now accounting for 35% of its business, up from 13% three years ago. The company added 14 new customers in Q4FY25 and continues to deepen relationships with tech giants like Microsoft and AWS.
🚀 Future Business Prospects
Sonata’s future growth is anchored in its transformation into a “modernization engineering company,” leveraging AI, cloud computing, and strategic partnerships. The company’s proprietary “Platformation” model and Harmoni.AI platform are central to this vision.
Key growth drivers include:
- AI Modernization: Sonata aims to derive 20% of its revenues from AI-powered services within three years. With a $58 million AI pipeline and 87% of employees trained in GenAI, the company is well-positioned to lead in this space
- · Strategic Deals: The company is focused on winning large, high-value deals. Recent wins include a global modernization program for a mining tech firm and a SaaS revamp for a transport tech company. These showcase Sonata’s ability to deliver complex, AI-driven transformations.
- · Microsoft Dynamics & Fabric: While growth in Microsoft-related services has slowed due to reduced investments from mid-sized US firms, Sonata is aligning with Microsoft’s AI-led strategy to tap future opportunities.
- · Vertical Expansion: Sonata operates across Healthcare, BFSI, Retail/Manufacturing, and Telecom/Media/Tech, with geographic coverage in North America, Europe, India, and Australia. The company plans to scale new enterprise clients into $10–25 million accounts over the next few years
⚠️ Challenges Ahead
Despite a strong pipeline, Sonata faces near-term challenges:
- Client-specific issues in BFSI and Retail.
- Microsoft’s direct engagement strategy affecting DPS margins.
- Global macroeconomic softness impacting discretionary IT spending.
The company expects FY2026 to be a muted year, with projected IITS revenue and EPS CAGR of 7% and 13% respectively over FY25–28.
🧭 Conclusion
Sonata Software stands at a strategic inflection point. While short-term growth may be tempered by external challenges, its investments in AI, cloud, and strategic partnerships position it for long-term success. The company’s focus on modernization, large deals, and vertical diversification suggests a promising trajectory for sustained growth and innovation.
Share Price Targets:
Sonata Software Share Price Target 2025
Based on the above discussion and analysis, the share price of Sonata Software Ltd may touch the level of around Rs.435-450 in 2025
Sonata Software Share Price Target 2030
Based on the above discussion and analysis, the share price of Sonata Software Ltd may touch the level of around Rs.900-1000 in 2030
Sonata Software Share Price Target 2035
Based on the above discussion and analysis, the share price of Sonata Software Ltd may touch the level of around Rs.2000-2250 in 2035
Sonata Software Share Price Target 2040
Based on the above discussion and analysis, the share price of Sonata Software Ltd may touch the level of around Rs.4500-5000 in 2040
Disclaimer: Investments in Capital Market/Share Prices are subject to market fluctuations and are dependent on several factors. These predictions are based on the current market conditions and the future market expectations. Investors are advised to take into consideration all these factors before making any investment in Capital Market. This article should not be treated as Investment advisory and is for general Guidance & Educational purpose only. We keep revising our share price targets based on the latest information available with us. Please keep visiting our website regularly to keep yourself updated. News4You does not offer investment advice and does not encourage any action based on its content.
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