Archive · 2 Jun 2025
IT Sector: Newgen Software Eyes Growth; Sonata Software Targets Margin Recovery
Newgen Software expects to keep growing at around 20% each year, like they have since 2013.
They are focusing on growing in the US, expecting it to bring in about half their revenue in a few years.
Sonata Software is aiming to grow and improve profits, hoping to reach a 20% profit margin in the next year or two.
They expect growth to return in the next quarter, especially in banking and healthcare.
Both companies see opportunities for expansion and are optimistic about the future, despite some challenges in the economy.
Newgen Software aims for sustained 20% annual growth, with the US as a key driver.
Newgen's US revenue currently at 24-25%, aiming for 50% in 2-3 years.
Sonata Software anticipates return to growth in Q1FY26, driven by BFSI and healthcare verticals.
Sonata Software targeting low 20s EBITDA, aiming to reach 18-20% in FY26.
Sonata Software sees FY26 as a defining year for margin recovery.
- Who
- Newgen Software, a software company, and Sonata Software, an IT company.
- What
- Newgen Software expects continued 20% growth and Sonata Software anticipates growth from Q1FY26.
- When
- Newgen Software anticipates continued growth and Sonata Software eyes FY26 for key performance.
- Where
- Newgen Software is focusing on growth in the US market, while Sonata Software is a Mumbai-based IT company.
- Why
- Newgen wants to maintain strong growth and Sonata aims for margin recovery.
- Newgen FY23-24 Growth
- 20% YoY
- Newgen US Revenue
- 24-25%
- Newgen Market Cap
- ₹15,346.51 crore
- Sonata Software Q4FY25 Revenue
- ₹2,671 crore
- Sonata Software FY26 EBITDA Target
- 18-20%
- Sonata Software Market Cap
- ₹11,121 crore