SAGILITY LIMITED (SAGILITY)
🎯 Key Takeaways
- Sagility Limited is in a growth phase driven by strategic acquisitions and expansion in healthcare IT services, with recent financial performance showing strong top-line growth and improving profitability. The company has transitioned from a pure-play IT services model to a diversified healthcare analytics and digital services provider, supported by the CareSeed acquisition and international footprint expansion.
- Revenue grew 9.7% QoQ to ₹1,453 in Q3FY25.
- ⚠️ Wage inflation in key operational regions (Karnataka, Telangana) poses margin pressure, though partially offset by FX tailwinds.
📖 The Story
Sagility Limited is in a growth phase driven by strategic acquisitions and expansion in healthcare IT services, with recent financial performance showing strong top-line growth and improving profitability. The company has transitioned from a pure-play IT services model to a diversified healthcare analytics and digital services provider, supported by the CareSeed acquisition and international footprint expansion.
📰 What's Happening
In Q1 FY2027, Sagility reported 27.6% YoY revenue growth to ₹19,635 million, driven by organic expansion and the CareSeed acquisition which added $5.1 million in revenue and 26 new clients. Adjusted PAT grew 35% YoY to ₹12,006 million TTM, with adjusted EBITDA margin held at 24%. The company reaffirmed FY2027 guidance for low double-digit organic growth and 24-25% adjusted EBITDA margin, citing FX tailwinds offsetting wage inflation pressures. Management highlighted ongoing integration of CareSeed to drive cross-selling in mid-market segments and expansion across 5 countries with 29 delivery centers.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Q2FY25 | Q3FY25 |
|---|---|---|
| Revenue | 1,325 | 1,453 |
| Operating Profit | 316 | 436 |
| OPM % | 22.7% | 27.0% |
| Net Profit | 117 | 217 |
| EPS | ₹0.25 | ₹0.46 |
Revenue growth has accelerated from ₹1,325 million in Q2FY25 to ₹1,453 million in Q3FY25, with operating margin expanding from 22.7% to 27.0% and net profit rising from ₹117 million to ₹217 million. This trend reflects successful scaling of operations and margin improvement, supported by cost discipline and acquisition synergies. The company has reduced net debt to INR 1,110 million (0.06x net debt/EBITDA), enhancing financial flexibility while investing in growth initiatives like CareSeed integration and geographic expansion.
🔮 Management Outlook & What's Next
Management expects wage inflation in Karnataka and Telangana to impact Q2 margins by approximately 1.2%, but anticipates these pressures will be offset by foreign exchange benefits and operational efficiency initiatives. The company reaffirmed its FY2027 guidance for 24-25% adjusted EBITDA margin and low double-digit organic growth, emphasizing that CareSeed acquisition will drive sustainable growth and client diversification. Seasonal revenue patterns are expected to remain stable at ~6% of total revenue, with recurring revenues anticipated to return in Q3 and Q4 FY27.
Extracted from official company announcements. Not StockFin.ai's opinion.
⚖️ Peer Comparison — IT - Services
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| L&T Technology Services Limited | 37,049 | 28.5 | — | — | — |
| Inventurus Knowledge Solutions Limited | 27,371 | 37.5 | — | — | — |
| Tata Technologies Limited | 25,193 | 39.0 | — | — | — |
| Netweb Technologies India Limited | 21,868 | 106.3 | — | — | — |
| Affle 3i Limited | 20,797 | 45.6 | 15.4% | 12.4% | 0.00 |
| SAGILITY LIMITED | 19,662 | 21.3 | — | — | — |
| Black Box Limited | 15,597 | 79.7 | — | — | — |
| Cyient Limited | 9,676 | 15.1 | — | — | — |
| Amagi Media Labs Limited | 8,751 | — | — | — | — |
| Datamatics Global Services Limited | 4,385 | 20.6 | — | — | — |
⚠️ Risk Factors
1. Wage inflation in key operational regions (Karnataka, Telangana) poses margin pressure, though partially offset by FX tailwinds. 2. Integration risks associated with CareSeed acquisition, including earnout costs spanning FY27-FY29 and intangible amortization through FY36, could impact future profitability. 3. Exposure to foreign exchange volatility, despite current tailwinds, remains a structural risk given global operations. 4. Regulatory and compliance costs related to labor law revisions and ESG reporting may affect operational flexibility and costs.
📋 Recent Filings
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🔴 Financial Results 28 July 2026Sagility Limited reported Q1 FY2027 revenue of **₹19,635 million**, up 27.6% YoY, with adjusted EBITDA margin at 24% and adjusted PAT growth of 35% Yo...
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Announcement 27 July 2026Sagility Limited announced that its officials will attend two physical investor meetings on July 30-31, 2026 in Mumbai, reiterating publicly available...
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🔴 annual report 27 July 2026Sagility Limited submitted its Business Responsibility and Sustainability Report for FY 2025-26 along with a DNV assurance report, confirming consolid...
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🔴 annual report 27 July 2026Sagility Limited announces its 5th Annual General Meeting on 20 August 2026 via video conference, seeking shareholder approval for adopting FY2025-26 ...
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Announcement 24 July 2026Sagility Limited announced that Chandrasekaran Associates issued a SEBI-mandated reconciliation certificate confirming its share capital audit for the...
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🔴 Financial Results 22 July 2026Sagility Limited disclosed that the video recording of its investor webinar discussing unaudited financial results for the quarter ended June 30, 2026...
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🔴 Financial Results 21 July 2026Sagility Limited reported Q1 FY27 revenue of INR 19,635 million, up 27.6% YoY, with Adjusted PAT at INR 2,697 million, up 35.1% YoY. Adjusted EBITDA m...
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🔴 Financial Results 21 July 2026Sagility Limited reported Q1 FY27 revenue of ₹19,635 million, reflecting 27.6% YoY growth driven by organic expansion and new client wins. Adjusted EB...
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🟡 Board Meeting 21 July 2026Sagility Limited announced its Q1 FY27 unaudited financial results on July 21, 2026, reporting consolidated revenue of ₹19,778.06 million and profit a...
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Announcement 21 July 2026Sagility Limited announced the re-appointment of PricewaterhouseCoopers Services LLP as its internal auditor for a three-year term starting October 1,...
🧠 Analyst's Read
Sagility is executing a clear growth strategy through acquisitions and market expansion, supported by strong revenue and margin trends, but margin sustainability depends on managing wage inflation and successfully integrating CareSeed operations. The next key watchpoint is Q2 performance amid wage inflation and the pace of CareSeed cross-sell synergies.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-08-02.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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