Sonata Software Ltd. Aims for Market Recovery Amid Business News Highlights
Market Recovery Insights
Sonata Software Ltd. anticipates a gradual recovery in the IT sector, though challenges persist in achieving consistent revenue growth. CFO Jagannathan CN noted that while the market shows signs of improvement, external factors like Fed rates and US elections continue to cloud decision-making.
Business News Update
- Strong Pipeline: Despite a solid pipeline of opportunities, conversion into revenue remains slow.
- New IT Outsourcing Deal: Sonata recently secured a significant long-term contract with a US healthcare firm to develop AI solutions.
- Stock Performance: Shares experienced a decline recently, erasing initial gains, yet the outlook for FY26 appears promising.
Future Outlook
Jagannathan shared that while the next few quarters may see margin pressure due to this new deal, the long-term benefits are expected to yield better margins overall. The strategic focus on AI development will also align with ongoing customer demands in the evolving IT landscape.
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