Archive · 17 Sep 2025
Sonata Software Growth Muted Due to Client and Sector Issues
Sonata Software, an IT firm, is facing slower growth.
HDFC Institutional Equities expects a muted financial year.
The company is experiencing pressure from a large US banking client, alongside challenges in retail and manufacturing due to global economic issues.
Healthcare and life sciences have stabilized.
Sonata aims for an 18% profit margin by FY26.
Earnings are expected to grow moderately, with the brokerage maintaining an 'ADD' rating and a target price of ₹400.
Sonata Software is experiencing muted growth.
BFSI sector faces pressure from a major US banking client.
Retail and manufacturing sectors are under stress from global conditions.
Healthcare and life sciences have stabilized.
HDFC Institutional Equities maintains an 'ADD' rating with a target price of ₹400.
- Who
- HDFC Institutional Equities
- What
- Analysis of Sonata Software's financial performance and outlook.
- When
- Published on September 17, 2025
- Where
- N/A
- Why
- Due to client-specific challenges, and macroeconomic headwinds affecting sectors.
- Rating
- ADD
- Target Price
- ₹400
- CMP
- ₹390.40
- IITS EBITDA Margin Target (FY26E)
- 18%
- Forecasted IITS Revenue CAGR (FY25-28E)
- 7%
- Forecasted EPS CAGR (FY25-28E)
- 13%
