Sonata Software Ltd shares fell as much as 12% in early trade on Thursday, April 17, after the company issued a warning about revenue from its international business during the quarter ended March 31, 2025.
In an exchange filing on Wednesday, Sonata Software said its international business revenue is likely to be lower than previously reported, as revenue estimates from its largest customer are likely to be lower than anticipated.
For the December quarter, Sonata Software’s international business contributed 25% to the company’s total revenue, according to its investor presentation.
The company had talked about a large customer during its December quarter earnings call held in February this year.
Sonata Software MD and CEO Sameer Dhir had highlighted during the earnings call that while the growth momentum was good during the first half of the year, the second half saw some decline due to the client’s cost control efforts.
“So, from mid-to-end November, early December our revenues declined and now we will see the impact throughout the quarter,” Dhir said. He further added that while it is a very stable client, the impact will last for the entire fourth quarter and may even extend to the first quarter of FY2026.
“This is not a permanent loss but a short-term setback that we are facing right now,” Dhir had said then. CFO CN Jagannathan had mentioned during the earnings call that the company expects revenue decline between 2.5% and 3.5% in the fourth quarter for its international IT services business, including seasonal impact at the company level.
Shares of Sonata Software fell over 12% to ₹293.9 on Thursday. The stock has declined 56% from its 52-week high of ₹ 763.7.
The stock has declined 5.5% in the last one month, but despite some recovery from the 52-week low, its loss for 2025 is 45%. The stock closed 0.6% higher at ₹ 335.4 on Wednesday.
