Low PE Multibagger IT Stock Hits 20% Upper Circuit; AI-Led Order Book Touches USD 49 Million In FY26

Indian equity benchmarks traded higher on Tuesday, with the benchmark Nifty 50 index rising 135.25 points, or 0.57 per cent, to 23,989.15. Amid the broader market rally, Sonata Software share price jumps 19.55 per cent and were locked in the 20 per cent Upper Circuit at Rs 311.25, emerging as one of the Top Gainers of the session. The stock witnessed strong investor interest, with trading volumes crossing 290.3 lakh shares, significantly higher than the 20-day average volume of 28.2 lakh shares.

Sonata Software AI-Led Order Book Continues To Expand

One of the key growth drivers for Sonata Software has been its increasing focus on artificial intelligence-led transformation projects. During Q4 FY26, the company reported an AI-led order book of USD 16.9 million, while the cumulative AI-led order book for the full financial year reached USD 49 million.

AI-driven initiatives now contribute approximately 18 per cent of Sonata's total order book, highlighting the growing importance of artificial intelligence within the company's business strategy.

Sonata Software Strong AI Pipeline Supports Future Growth

The company also reported a robust AI-led pipeline of USD 280 million as of the end of FY26, indicating significant opportunities for future deal conversions.

Management believes the growing adoption of AI, automation and digital transformation solutions across enterprises is creating a strong demand environment for its technology offerings.

Sonata Software Large Deal Wins Drive Momentum

Sonata Software secured two large deals during Q4 FY26, taking the total number of large deal wins during FY26 to eight.

While the number of large deals currently under discussion stood at 11 opportunities, management clarified that the decline from earlier levels was largely due to successful conversion of pipeline opportunities into signed contracts during the year-end period.

The company remains optimistic about future deal flow, particularly in digital transformation and AI-led initiatives, despite longer client decision-making cycles in certain markets.

Sonata Software Stock Performance

The stock has delivered mixed returns across different timeframes. Sonata Software has gained 20.18 per cent over the last one month, while it remains down 9.33 per cent over the past six months and 26.52 per cent on a one-year basis. Tuesday's sharp rally helped the stock recover a portion of the losses witnessed during the past year.

About Sonata Software

Sonata Software Ltd is a global IT services and technology solutions company focused on digital transformation, cloud services, data analytics, artificial intelligence and enterprise modernisation. The company serves clients across multiple industries and continues to strengthen its presence in AI-led digital transformation projects globally.

From a valuation perspective, Sonata Software trades at a PE ratio of 17.3, which remains below the industry average PE of 21.2, indicating relatively attractive valuations compared to industry peers.

What are your views on Sonata Software's growing AI-led order book and pipeline? Do you believe AI-driven opportunities can support long-term growth for the company? Share your thoughts in the comments below.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.