Sonata Software faces margin impact due to client ramp-down; stock falls over 12%

Shares of Sonata Software on Friday fell over 12% on NSE after one of the company’s largest clients decided to scale down its operations, impacting the firm’s margins in the third quarter and affecting growth in the fourth quarter as well.

The ramp-down, driven by the client’s optimisation efforts and the introduction of generative AI in customer service, led to a one-time discount and employee settlement costs.