Shares of Sonata Software experienced a significant surge on April 28, climbing as much as 7% after the company secured a substantial $73 million contract over five years with a prominent U.S. firm in the technology, media, and telecom (TMT) sector. By 1:10 PM, the stock price hit an impressive intraday high of ₹364.70 per share, marking an overall rise of more than 11% in just five trading sessions.
Major Contract Win
Sonata Software’s recent partnership is designed to enhance the digital strategy of the U.S.-based client, focusing on:
- Global scalability
- Faster innovation
- Optimization of IT operations
The collaboration utilizes an AI-first outsourcing approach, showcasing Sonata’s commitment to leveraging cutting-edge technology for enhanced business outcomes.
AI-Powered Engineering Center
In line with this partnership, Sonata announced plans to establish a specialized AI-powered Modernisation Engineering Center in India. This center will concentrate on:
- Platform engineering
- Cloud transformation, particularly with Amazon Web Services
- Enterprise systems such as Salesforce and Workday
- Cybersecurity
- Data services
- Modern application development
All these efforts will be backed by automation and scalable engineering practices to ensure optimal performance.
Leadership Insights
“This is the second-largest deal in Sonata’s history and a significant achievement for our team,” stated Samir Dhir, Managing Director and CEO of Sonata Software. He emphasized that this contract underscores Sonata’s unique position as a suitable partner for enterprises pursuing in-depth modernization and AI-driven transformation. Dhir expressed excitement about assisting the client in achieving new levels of speed, agility, and digital resilience.
Strategic Advantages
Sonata’s strategic approach is set to empower the client with improved operational efficiency, faster innovation cycles, and greater agility, which are essential for thriving in a rapidly changing industry landscape.
Recent Business Developments
However, it’s worth noting that Sonata Software had previously indicated potential challenges regarding its international business revenues for the March quarter. The company acknowledged that revenue from its international operations might fall short of earlier forecasts, primarily due to lower-than-expected revenue from its largest client.
With this multi-year contract and a focus on AI-driven solutions, Sonata Software is positioning itself for significant growth and innovation in the competitive TMT sector.
