IT's Minnows Spell Out GenAI Revenue as Big Five Fight Shy

Sonata, Happiest Minds take a leaf from the books of Accenture, IBM, while larger rivals stay mum

- Jas Bardia

Almost two years after Accenture Plc started quantifying business from artificial intelligence (AI), two small Indian information technology service companies have taken the lead in declaring or projecting revenue from the technology that has upended businesses globally. Analysts are divided over whether such disclosures are relevant or premature.

Sonata Software Ltd, which entered the $1 billion club of local IT companies last year, provided an AI revenue estimate for FY28 that far exceeds levels that Accenture most recently disclosed.

"We expect AI-enabled services to contribute 20% of Sonata's revenue over the next three years, reflecting our strong market traction and focused execution," Samir Dhir, managing director and chief executive officer of Sonata Software, told analysts on 5 August.

Sonata Software ended FY25 with $1.2 billion in revenue, up 15.5%. This translates to $160 million in incremental revenue.

If the company adds a similar amount each year for the next three years, its revenue would touch $1.68 billion by FY28, of which about $330 million would be from AI.

To be sure, the Bengaluru-based company aspires for $1.5 billion in revenue by FY26. An email sent to the company on Tuesday seeking comment on revenue goals was unanswered.