BENGALURU: Sonata Software program Ltd has filed an involuntary chapter petition in a US courtroom towards a retail shopper over unpaid dues of about $10.65 million, an quantity equal to roughly 6.6% of the corporate’s incremental income final fiscal.
The declare highlights the monetary publicity from a shopper ramp-down in Sonata’s retail phase, which contributes about $100 million, or 8% of the corporate’s income, and comes because the agency can also be grappling with a discount in enterprise from Microsoft Corp.
On 6 March, the Indian software program providers firm filed the petition at a Delaware district chapter courtroom towards OBSA Working Firm LLC, searching for $10.65 million in damages for non-payment of dues. A day later, Sonata notified Indian inventory exchanges of the transfer.
“We want to inform you that Sonata Software program North America, Inc (“SSNA”), subsidiary of the Firm has instituted proceedings towards considered one of SSNA’s shopper for assortment of accounts receivables and the damages,” stated the corporate in a launch dated 7 March.
Minnesota-based OBSA is primarily a retail and monetary providers firm that operates the e-commerce model, thimble.
Sonata Software program filed an involuntary petition towards OBSA, which suggests that Sonata has requested the courts to provoke chapter proceedings towards the corporate. The Delaware courtroom will resolve the validity of the petition.
If the courtroom finds benefit in Sonata’s case, a trustee will probably be appointed to supervise the sale and distribution of OBSA’s belongings to collectors. Ought to the courtroom dismiss the petition, Sonata might not obtain the $10.64 million in damages and dues. For now, Sonata has factored each situations.
“The corporate has reviewed its publicity in relation to the above growth, together with receivables and present contractual safety. Nonetheless, we anticipate This autumn 26 PAT to be nonetheless accretive in comparison with Q3 26 as a result of sure different one-time offsetting elements, and Revenues additionally is predicted to be in step with the steerage offered throughout February 6, 2026 incomes name,” learn Sonata’s submitting to the inventory exchanges.
The corporate ended final yr with $1.2 billion in income, up 15.5% on a yearly foundation. Nearly half of its income comes from promoting software program licenses.
Analyst view
At the least one knowledgeable stated the case might take time to resolve.
“I ought to be aware that the prospects of a well timed decision are unsure and whatever the strengths of their case the money impression is more likely to be considerably delayed,” stated Peter Bendor-Samuel, founding father of Everest Group. He added that the authorized motion could possibly be seen as a pleasant win however a structural blip.
An identical situation was flagged by Sonata’s administration throughout its post-earnings name with analysts final month. Mint couldn’t independently confirm if the retail shopper in reference was certainly OBSA.
“Very not too long ago, there was an surprising ramp down in considered one of our giant retail purchasers. We continued to work with the shopper on the revised phrases and circumstances,” stated Samir Dhir, chief govt of Sonata Software program, as a part of his ready feedback on 6 February.
The corporate didn’t make clear the quantity of claims sought from the shopper in the course of the name however stated that the retail phase would take a success.
“Within the retail, basically, it has been delicate for us. It had some one or two quarters of progress, however we don’t anticipate to be in a stable progress trajectory in any time within the subsequent one or two quarters as nicely. I believe retail will proceed to be below stress for us,” stated Dhir.
Dhir added that the corporate had partially absorbed the impression in Q3 (October-December 2025) and would take up the remaining impression within the present quarter (January-March 2026). Sonata Software program follows an April-March monetary calendar.
Sonata is represented by Amanda R Steele from Delaware-based regulation agency, Richards, Layton & Finger, P.A.