Sonata Software is strengthening its position as a differentiated engineering firm, leveraging artificial intelligence, platform-led delivery, and deep vertical focus to drive sustained growth across global markets.
Addressing analysts during the earnings call, Managing Director and CEO Samir Dhir highlighted strong momentum at the intersection of AI and modernisation engineering, which is translating into large deal wins, rising market share in key verticals such as BFSI and Healthcare & Life Sciences (HLS), and deeper client engagement across geographies.
The company’s strategy is anchored on four key pillars: scaling AI and modernisation capabilities, relentless focus on large deals, expansion across strategic verticals and geographies backed by talent, and building a resilient domestic business.
Sonata continues to make measurable progress in scaling its AI-led business. AI now accounts for 14% of the total order book, up from 10% in the previous quarter, underscoring growing client demand and deeper AI integration in transformation programmes.
The company’s go-to-market strategy is closely aligned with cloud service providers’ AI co-sell models, particularly Microsoft’s AI consumption framework. During the quarter, Sonata closed two mid-sized AI plus CSP deals, supporting both client expansion and new logo acquisition.
Earlier this year, Sonata launched AgentBridge, a cloud-agnostic agentic AI platform designed to help enterprises build and deploy next-generation AI agents. The company is also partnering with IISc in India and Wharton School in the US to accelerate research and innovation in agentic AI.
Internally, Sonata has operationalised production-grade AI agents across multiple functions, reinforcing its ambition to be a model AI-led services organization. AI-led engagements are currently being pursued across more than 100 clients, delivering operational efficiency, faster time-to-market, and business model transformation.
Modernisation demand remains strong, with cloud and data opportunities accounting for 50% of the company’s total pipeline. Sonata is seeing accelerated adoption of Microsoft Fabric, where it is an official feature partner, and continues to deepen its leadership in the Microsoft Dynamics ecosystem across ERP modernization, SaaS transitions, and low-code/no-code programs.
Large strategic deals continue to anchor Sonata’s growth agenda, with 40% of the pipeline comprising large deal opportunities.
In the most recent quarter, Sonata secured a multi-year contract from a Fortune 500 global financial technology and payments provider to modernize its core digital wallet platform, enabling faster, more secure payments and accelerated expansion into new customer segments.
The company also won a multi-year engagement with a leading mortgage provider to modernize core banking platforms using automation and AI, aimed at enhancing consumer experience, reducing technical debt, and enabling data-driven insights.
Sonata’s differentiated AI-led transformation approach, combined with modern engineering practices and platform-driven data modernization, has been a key factor in securing these wins.
During the quarter, Sonata recorded notable AI-led wins, including an engagement with a Europe-based digital document management firm to transform its legacy systems into an agentic AI-driven platform, laying the foundation for future SaaS transformation.
Another strategic win involved a US-based global software provider, where Sonata is modernizing a legacy WinForms application into a browser-based interface using AI.
Investments in strategic verticals are yielding results. BFSI and Healthcare & Life Sciences now contribute 31% of total revenue, up sharply from 13% three years ago, reflecting disciplined execution and focused scaling.
Geographically, North America now accounts for over 70% of Sonata’s revenue, compared with 54% three years ago, driven by deeper client relationships and expanding wallet share.