Sonata Software Ltd is a mid-sized Indian IT services company specializing in cloud transformation, data analytics, digital commerce, and enterprise application modernization. Headquartered in Bengaluru, it serves clients across North America, Europe, and APAC, with a strong presence in the Microsoft and AWS ecosystems. The company also holds a strategic stake in its Australian subsidiary, Sonata Australia, which contributes significantly to revenue and profitability. Despite a sharp 40.42% YoY profit decline in FY2025 due to one-time restructuring costs and client-specific headwinds, Sonata maintains a debt-free balance sheet, high return ratios, and consistent dividend payouts—making it a niche player in India’s competitive IT sector. This article provides a data-backed outlook on the Sonata Software share price target 2026–2030.
Sonata Software Ltd: Company Overview
- Founded: 1986
- Headquarters: Bengaluru, Karnataka
- Key Segments: Cloud & Infrastructure, Data & Analytics, Digital Commerce, Application Modernization
- Geographic Mix: North America (58%), Europe (22%), India & APAC (20%)
- Strategic Edge: Strong partnerships with Microsoft, AWS, and SAP; asset-light model
Sonata differentiates itself through domain-led digital solutions rather than scale. Its focus on mid-market clients offers resilience during macro slowdowns, though it limits blockbuster growth potential.
Sonata Software Ltd: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹311.30 |
| Market Capitalization | ₹8,729.62 Cr |
| No. of Shares Outstanding | 28.04 Cr |
| 52-Week High / Low | ₹485 / ₹290 |
| P/E Ratio (TTM) | 45.14 |
| P/B Ratio | 10.89 |
| EPS (TTM) | ₹6.90 |
| Book Value (TTM) | ₹28.60 |
| ROE | 28.88% |
| ROCE | 31.72% |
| Dividend Yield | 1.41% |
| Face Value | ₹1 |
| Cash | ₹83.82 Cr |
| Total Debt | ₹0 Cr |
| Debt-to-Equity | 0.00 |
| Sales Growth (YoY) | 4.32% |
| Profit Growth (YoY) | -40.42% |
| Promoter Holding | 28.17% |
Sonata Software Ltd Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹335 – ₹375 |
| 2027 | ₹360 – ₹410 |
| 2028 | ₹385 – ₹450 |
| 2029 | ₹410 – ₹490 |
| 2030 | ₹435 – ₹530 |
Sonata Software Ltd Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹335 | ₹375 |
Sonata reported a steep 40.42% YoY profit drop in FY2025, primarily due to restructuring expenses in its Australia business and lower utilization in legacy segments. However, underlying sales grew modestly (4.32%), and core margins remain healthy. Trading at a P/E of 45x and P/B of 10.9x, the stock reflects a premium valuation—but is justified by its 31.7% ROCE and zero debt. A 2026 target of ₹335–₹375 assumes margin recovery and stable client retention.
Sonata Software Ltd Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹360 | ₹410 |
The company’s focus on cloud-led digital transformation and strategic partnerships (e.g., Microsoft Azure, AWS) should drive higher-margin revenue. If EPS recovers to ₹8.00–₹8.50 by FY27 and P/E stabilizes at 44–46x, the 2027 range of ₹360–₹410 is realistic.
Sonata Software Ltd Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹385 | ₹450 |
By 2028, benefits from automation, improved offshore leverage, and Australia integration should reflect in profitability. Assuming EPS of ₹8.50–₹9.20 and P/E of 45–48x, the ₹385–₹450 band is justified.
Sonata Software Ltd Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹410 | ₹490 |
Long-term tailwinds include global digital acceleration and India’s IT export leadership. Risks include pricing pressure and talent churn. Using a P/E of 46–50x on projected EPS (~₹8.80–₹9.80), the 2029 target is ₹410–₹490.
Sonata Software Ltd Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹435 | ₹530 |
Over a five-year horizon, Sonata’s value lies in its capital efficiency and niche positioning—not scale. A terminal P/E of 48–52x on FY30 EPS (~₹9.00–₹10.20) supports the ₹435–₹530 range.
Sonata Software Ltd: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Public & Retail | 36.74% |
| Domestic Institutional Investors (DII) | 26.30% |
| Promoters | 28.17% |
| Foreign Institutional Investors (FII) | 8.79% |
| Others | 0.00% |
High retail and DII participation reflects broad investor trust, while promoter holding remains stable despite past reductions.
Sonata Software Ltd: Strengths vs Risks
Strengths:
- Zero debt and ₹83.8 Cr cash—strong balance sheet
- Industry-leading ROCE (31.72%) and ROE (28.88%)
- Consistent dividend payer (1.41% yield; ~60% payout ratio)
- Strategic focus on high-growth digital services
Risks:
- Profit declined sharply (-40.42%) in FY25 due to one-off costs
- Modest sales growth (4.32%) limits top-line momentum
- P/B of 10.89x leaves little room for execution misses
- Mid-cap liquidity risk during market corrections
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate to High |
| Ideal Time Horizon | 3–5+ years |
| Volatility | Higher than market average (mid-cap IT stock) |
| Dividend/Income Potential | Yes (1.41% yield + consistent payouts) |
| Best For | Quality-focused investors seeking niche IT exposure with high returns |
Final Verdict
Sonata Software Ltd combines capital efficiency, financial prudence, and strategic focus in a crowded IT landscape. While near-term profits are volatile, its long-term fundamentals remain solid. Our Sonata Software share price target 2026–2030 (₹335 to ₹530) reflects steady appreciation driven by return ratios—not speculation.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Sonata Software Consolidated Page (FY2025 + TTM)
- Finology Ticker – SONATSOFTW Financial Ratios & Valuation
- Sonata Software Investor Presentation (Q2 FY26, Nov 2025)
- BSE India – Annual Report FY2025
- NASSCOM IT Industry Outlook 2026
