We're seeing strong momentum in AI adoption, says Sonata CFO

Bengaluru: Bengaluru-based mid-tier IT company Sonata Software sees strong momentum in AI adoption and Agentic AI implementations. In the second quarter ended September 2025, the company reported a net profit of Rs 120 crore and its revenue from operations stood at Rs 2,119.3 crore, a decline of 28.5% sequentially.

Sonata Software Chief Financial Officer Jagannathan CN told DH that higher utilisation, planned large deal offshoring, and AI adoption, as well as Agentic AI implementations across all functions, are helping them boost their operating margin.

He said the macro environment remains uncertain, and that they are seeing strong momentum in AI adoption, creating substantial opportunities at the intersection of AI, modernisation engineering, cloud, and data.

“BFSI and Healthcare life sciences (HLS) are seeing significant opportunities and growth. These two verticals currently contribute 33% of our total revenue, a sharp rise from 13% just three years ago. Large-deal pursuits remain a cornerstone of our growth strategy, with approximately 40% of our pipeline comprising large, strategic opportunities,” Jagannathan said.

The company has won one large deal during Q2 FY26. Its North America business has scaled significantly and now represents over 70% of total revenue, up from approximately 54% three years ago. “This shift reflects our continued success in deepening client relationships and expanding share in this key market,” he said.

The modernisation engineering company is also actively pursuing AI opportunities across 100 clients. “We are helping them unlock value through operational efficiency gains, time to market through enhanced customer experience and modernised sales, and transformation of business models through AI innovation,” the CFO said.

When asked about the hiring target, he said there is no target for hiring in FY26. “Despite a challenging macroeconomic environment, we remain committed to future-focused talent investments that strengthen our ability to deliver on growth ambitions,” he added.

During Q2 earnings, Sonata Software MD & CEO Samir Dhir said international IT services reported steady progress during the quarter. “Our continued strategic investments in AI are delivering results, with AI-led orders accounting for approximately 10% of the overall order book for the quarter,” he added.