Sonata Software Share Price Target 2027: Is Rs 285 Realistic? Bull Case Points to Rs 342

Investors weighing a Sonata Software target price for 2027 should start with where the stock sits today. At Rs 242.98 on 6 November 2026, it is 39.3% below its 52-week high of Rs 400.50 and 17.3% above its 52-week low of Rs 207.15. That range spans 93% from low to high, so the entry point matters as much as the Sonata Software price forecast itself.

This article builds the Sonata Software share price target from reported numbers only: five years of annual results, the last five quarters, the latest shareholding pattern and current valuation ratios from company filings and exchange data. Each scenario states its assumptions, so you can trace how the base case, the bull case and the downside risk level were reached and test them against your own view.

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Sonata Software Stock Analysis: Company Overview and Key Stats

Sonata Software (NSE: SONATSOFTW) has a market capitalisation of Rs 6,660 crore. In FY26 it reported revenue of Rs 10,806 crore and net profit of Rs 464.39 crore. The table collects the figures the Sonata Software share price target is built on.

Metric	Value
Company	Sonata Software
NSE Ticker	SONATSOFTW
CMP (6 November 2026)	Rs 242.98
52-Week High	Rs 400.50
52-Week Low	Rs 207.15
Market Cap	Rs 6,660 crore
PE Ratio (TTM)	14.38
Industry PE	18.98
Price to Book	3.50
Return on Equity	26.69%
Debt to Equity	0.38
EPS (TTM)	Rs 16.52
Dividend Yield	3.28%
12-Month Base Target	Rs 285
Bull Case	Rs 342
Downside Risk Level (not a target)	Rs 190

Why Is Sonata Software Share Price Target Set at Rs 285 for 2027?

The arithmetic is short. Trailing EPS of Rs 16.52 grown for one year gives a forward EPS estimate of Rs 19.82, and multiplying it by the unchanged PE of 14.38 gives the Rs 285 base-case Sonata Software stock target. The bull case adds faster earnings growth and a higher multiple, while the downside risk level assumes flat earnings and a lower multiple.

Earnings Growth Behind the Sonata Software Target Price: Five Years of Results

Sonata Software grew revenue from Rs 5,655 crore in FY22 to Rs 10,806 crore in FY26, a compound annual growth rate of 17.6%. Net profit grew more slowly, from Rs 376.43 crore to Rs 464.39 crore (5.4% a year), which points to margin pressure alongside the sales growth.

Financial Year	Revenue (Rs Cr)	Net Profit (Rs Cr)	EPS (Rs)	Dividend per Share (Rs)
FY22	5,655.35	376.43	36.21	21.00
FY23	7,519.94	451.90	16.29	15.75
FY24	8,738.61	308.50	11.10	11.40
FY25	10,228.40	424.67	15.28	4.40
FY26	10,805.78	464.39	16.74	7.90

FY26 revenue growth was 5.6%, slower than the four-year average of 17.6%, and net profit moved up 9.4%. EPS rose from Rs 11.10 in FY24 to Rs 16.74 in FY26. The FY27 outlook depends on whether that EPS estimate keeps compounding.

Margins and the Latest Quarter

Sonata Software converted 4.3% of FY26 revenue into net profit, against 4.2% in FY25, within a five-year range of 3.5% to 6.7%. EBITDA margin was 7.2% in FY26 versus 7.4% in FY25.

In the September 2026 quarter, revenue was Rs 2,468 crore, up 14.7% from the same quarter a year earlier, while net profit of Rs 116.40 crore was down 3.2%. EBITDA came in at Rs 201.82 crore, down 1.1% year on year. The next quarterly result is the first test of whether the earnings assumption holds.

Balance Sheet and Cash Flow

Debt to equity stands at 0.38, and shareholders' equity grew from Rs 1,099 crore in FY22 to Rs 1,905 crore in FY26. Operating cash flow in FY26 was Rs 538.02 crore against capital expenditure of Rs 113.59 crore, leaving free cash flow of Rs 424.43 crore, or 6.4% of the current market capitalisation. In FY25 free cash flow was Rs 575.81 crore.

Valuation Check for the Sonata Software Stock Target: PE, Price to Book and ROE

At a PE of 14.38 against an industry PE of 18.98, Sonata Software trades at a discount to its industry. Price to book is 3.50 on a book value of Rs 67.93 per share, and return on equity is 26.69%. A PE of 14.38 equals an earnings yield of 7.0%, and the FY26 dividend of Rs 7.90 per share gives a yield of 3.28%.

Shareholding Pattern and Institutional Holding

Promoters held 28.17% of Sonata Software in September 2026, and promoter holding has stayed near 28.17% since September 2025. Foreign institutional investors (FII) held 8.84% and domestic institutions (DII) held 24.88%, which puts total institutional holding at 33.72%. FII holding has stayed near 8.84% since September 2025. Public shareholders own the remaining 38.12%. A meaningful institutional holding adds a layer of research coverage and trading depth.

Sonata Software Share Price Targets for the Short Term and 12 Months

Short Term Sonata Software Stock Target Levels: Technical Setup

At Rs 242.98 on 6 November 2026, Sonata Software trades below its 50-day simple moving average of Rs 259.47 and below its 200-day exponential moving average of Rs 289.16. The 14-day RSI reads 45.4, which is neutral territory, and the MACD line sits above its signal line. The nearest resistance level is Rs 259.47 (50-day simple moving average) and the nearest support is Rs 207.15 (52-week low). A sustained move above Rs 259.47 would improve the short-term setup, while a close below Rs 207.15 would shift attention to the next support.

12 Month Sonata Software Target Price for 2027

The 12-month target of Rs 285 means a move of 17.3% up from Rs 242.98 over the next 12 months. It would still leave the stock 28.8% below its 52-week high of Rs 400.50.

How EPS Growth and PE Multiple Change the Sonata Software Target Price

EPS Growth	PE 11.50	PE 14.38	PE 16.54
0.0% (EPS Rs 16.52)	Rs 190	Rs 238	Rs 273
20.0% (EPS Rs 19.82)	Rs 228	Rs 285	Rs 328
25.0% (EPS Rs 20.65)	Rs 237	Rs 297	Rs 342

Each cell multiplies the forward EPS estimate by the PE shown. Reading across a row shows what a de-rating or re-rating does to the Sonata Software price forecast, and reading down a column shows what earnings growth is worth at a fixed multiple.

Bull Case and Downside Risk for Sonata Software Stock Target in 2027

Bull Case Rs 342

The bull case Sonata Software price target needs EPS growth of 25.0%, which lifts forward EPS to Rs 20.65, and a PE multiple that rises 15% to 16.54. That gives Rs 342, 40.8% above the current price and below the 52-week high of Rs 400.50.

Downside Risk Level Rs 190

The downside risk level is not a target. It assumes EPS stays flat at Rs 16.52 and the PE falls 20% to 11.50. That gives Rs 190, 21.8% below the current price and below the 52-week low of Rs 207.15.

Scenario	EPS Growth	PE Multiple	Price (Rs)	Change vs CMP
Bull Case	25.0%	16.54	Rs 342	+40.8%
Base Case	20.0%	14.38	Rs 285	+17.3%
Downside Risk	0.0%	11.50	Rs 190	-21.8%

Key Risks to the Sonata Software Target Price for 2027

Growth Slowdown Risk for the Sonata Software Price Target

Revenue in the September 2026 quarter was up 14.7% year on year, and FY26 revenue growth was 5.6%. If growth slows from here, the EPS estimate behind the Sonata Software stock target will need revising.

Liquidity and Size Risk

Sonata Software has a market capitalisation of Rs 6,660 crore. Institutional holding is 33.72%, and promoters hold 28.17%. Stocks of this size can move sharply on small volumes, and exits can take longer than entries.

Valuation and Margin Risk

Net margin was 4.3% in FY26, so a small slip in costs moves profit noticeably. At a PE of 14.38 versus an industry PE of 18.98, a de-rating toward the downside-risk PE of 11.50 would cut the price even if earnings hold.

Market and Technical Risk

Technical indicators add short-term risk: the 14-day RSI is 45.4 and the MACD sits above its signal line. A broad fall in the Nifty 50 or the Sensex can override company fundamentals for weeks at a time.

How to Invest in Sonata Software

Start with the live price and volume. Any Sonata Software share price target is only as current as the data behind it, and the data here is as of 6 November 2026, so refresh the Rs 242.98 price before acting on any level.

Next, review the fundamentals yourself. The Univest Screener lets you check Sonata Software's PE, ROE, debt and shareholding in one place.

Check Sonata Software fundamentals on the Univest Screener

Then compare the three Sonata Software target price scenarios with your own view. If you expect EPS growth below 20.0%, the base case is too optimistic for you; if you expect more, the bull case deserves weight.

Decide your position size and exit levels before you buy. The support and resistance levels above can serve as reference points, but they are not recommendations.

Finally, place the order through a SEBI-registered broker or the Univest app, and review the position after each quarterly result. Consult a SEBI-registered advisor if you are unsure.

Download the Univest iOS App or Univest Android App to track Sonata Software live price and get daily stock recommendations.

Conclusion

The Sonata Software share price target for 2027 is Rs 285 in the base case, with Rs 342 as the bull case. The support for that view is arithmetic you can check: EPS grew 22.8% a year over FY24 to FY26, and the stock trades at a PE of 14.38. The risks are equally concrete, including a net margin of just 4.3% that leaves profit sensitive to costs and a downside scenario that cuts the price 22% if earnings stall. Use these numbers as a framework, check them against the latest filings, and size any position to your own risk appetite.

FAQs on Sonata Software Share Price Target 2027

What is the Sonata Software share price target for 2027?

Ans. The base-case Sonata Software share price target for 2027 is Rs 285, which is 17.3% above the price of Rs 242.98 on 6 November 2026. The bull case is Rs 342 and the downside risk level, which is not a target, is Rs 190. All three come from one method: forward EPS multiplied by a PE multiple, using only reported results. They are model estimates and not guaranteed outcomes, and the next quarterly result is the first check on the EPS assumption.

What is the Sonata Software share price today?

Ans. As of 6 November 2026, 9:49 AM IST, Sonata Software (NSE: SONATSOFTW) trades at Rs 242.98, up 2.21% on the day. That is 39.3% below the 52-week high of Rs 400.50 and 17.3% above the 52-week low of Rs 207.15. The market capitalisation of Rs 6,660 crore places it among small-cap stocks. Prices change through the trading session, so check the live quote before acting on any level in this article.

Is Sonata Software a buy or sell at the current price?

Ans. The data points both ways. On the positive side, EPS has grown 22.8% a year over FY24 to FY26 and the base case implies 17.3% upside; on the cautious side, the net margin is a thin 4.3%, and the downside risk level of Rs 190 is 22% below the current price. Whether Sonata Software fits your portfolio depends on your time horizon, position size and risk appetite. Consult a SEBI-registered advisor before investing, as this article is not investment advice.

What are the bull case target and downside risk level for Sonata Software shares?

Ans. The bull case in the Sonata Software share price target for 2027 is Rs 342, which assumes 25.0% EPS growth and a PE of 16.54, a 15% re-rating from today's multiple. That is 40.8% above the current price and below the 52-week high of Rs 400.50. The downside risk level is Rs 190, which assumes flat EPS and a PE of 11.50, 20% lower than today. It sits 21.8% below the current price and below the 52-week low of Rs 207.15, and it marks a risk to watch, not a target.

What are the main risks to the Sonata Software price target?

Ans. Four risks matter most for the Sonata Software share price target: slower revenue or profit growth, a PE de-rating, thin liquidity or size risk, and weakness in the broader market. With a market capitalisation of Rs 6,660 crore, the stock can move sharply on small volumes, and exits can take longer than entries. A fall to the downside-risk PE of 11.50 would cut the price even if earnings hold.

What is the PE ratio of Sonata Software and how does it compare with the industry?

Ans. The PE ratio of Sonata Software is 14.38, against an industry PE of 18.98, which is a discount to the industry. Price to book is 3.50 and return on equity is 26.69%, and the PE equals an earnings yield of 7.0%. The base case holds the PE unchanged, so the Sonata Software share price target moves only with earnings, while the bull and downside scenarios change the multiple by +15% and -20%.

Who owns Sonata Software, and what is the promoter holding?

Ans. Promoters held 28.17% of Sonata Software in September 2026. FII held 8.84%, DII held 24.88% and the public held 38.12%. Together the two institutional groups hold 33.72%. Shareholding is filed every quarter, so it is worth rechecking after each result.

What were Sonata Software's latest quarterly results?

Ans. In the September 2026 quarter, Sonata Software reported revenue of Rs 2,468 crore (up 14.7% year on year) and net profit of Rs 116.40 crore (down 3.2%). For comparison, FY26 full-year revenue growth was 5.6% and net profit moved up 9.4%. Each new quarter either supports or weakens the EPS growth of 20.0% assumed in the base case.