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Sonata Software has approached a US court over unpaid dues from its retail client, OBSA Operating Company LLC. The client has allegedly failed to pay about $10.6 million.
The Bangalore-based IT company helps businesses build and manage software, data systems, and cloud technology.
Breaking it down: the company has filed a bankruptcy petition in the US to recover these dues. The amount is significant as it equals roughly 6.6% of Sonata’s additional revenue last year.
If the court admits the case, OBSA’s assets could be sold to repay creditors. If not, Sonata may have to write off the amount. The episode also highlights the company’s exposure to its retail segment and slowing business from Microsoft.
Last week, Sonata Software was recently recognised as a Microsoft Frontier Partner, highlighting its work with Microsoft on advanced AI and cloud technologies.
Looking ahead: Sonata says the dispute is unlikely to hurt its near-term performance. It still expects higher profits in Q4 FY26 and steady revenues, supported by contractual protections and some one-time offsets, while the case continues.
