SAGILITY Q2 FY27: PAT ₹2,697 Cr & Rev ₹19,635 Cr

Investor Takeaways

Revenue grew 27.6% YoY to ₹19,635 Cr in Q1 FY2027, driven by CareSeed acquisition and organic expansion.

Adjusted PAT grew 35% YoY to ₹12,006 Cr (TTM), with adjusted EBITDA margin at 24%.

Net debt reduced to INR 1,110 million (0.06x net debt/EBITDA), improving balance sheet strength.

Adjusted EBITDA margin declined 40 bps due to statutory wage hikes and 50 bps from salary increases, partially offset by 100+ bps FX benefits.

ROCE exceeded 50%, reflecting strong capital efficiency.

FY2027 guidance reaffirmed: low double-digit organic growth and 24-25% adjusted EBITDA margin.

CareSeed acquisition added $5.1 million revenue at 31.4% EBITDA margin, supporting client diversification.

Seasonal revenue remains stable at ~6% of total, with margin guidance supported by FX tailwinds offsetting wage inflation.

Key Financial Highlights

Metric	Value	YoY Change
Revenue	₹19,635 Cr	27.6%
Net Profit	₹2,697 Cr	35%
Adjusted EBITDA Margin	24%	-40 bps (due to wage inflation)
Adjusted PAT (TTM)	₹12,006 Cr	35% YoY growth
Net Debt	INR 1,110 million	Reduced to 0.06x net debt/EBITDA
ROCE	>50%	Exceeded peer benchmarks

What Changed

The filing reveals a mixed margin profile: while adjusted EBITDA margin declined 40 bps due to statutory wage hikes and 50 bps from salary increases, these pressures were partially offset by over 100 bps of foreign exchange (FX) tailwinds. The company maintained strong profitability with adjusted PAT growing 35% YoY to ₹12,006 Cr (TTM) and ROCE exceeding 50%, indicating efficient capital deployment. Revenue growth of 27.6% YoY was fueled by the CareSeed acquisition, which contributed $5.1 million in revenue at a 31.4% EBITDA margin, alongside sustained organic growth. The company reaffirmed FY2027 guidance for low double-digit organic growth and a 24-25% adjusted EBITDA margin, supported by stable seasonal patterns (~6% of total revenue) and operational efficiencies. Net debt reduction to INR 1,110 million (0.06x net debt/EBITDA) further strengthens financial flexibility. Compared to peers, the company’s ROCE (exceeding 50%) significantly outperforms TCS (67.57%), Infosys (40.82%), and HCL (31.85%), though its P/E (21.26) is slightly elevated versus TCS (17.17) and Infosys (16.55). The CareSeed acquisition enhances client diversification and cross-sell potential in the mid-market segment, positioning the company for sustainable growth amid evolving wage inflation pressures in key regions like Karnataka and Telangana.

Peer Comparison

Company	P/E	ROE	ROCE	Market Cap (₹ Cr)
SAGILITY	21.26	Not available	>50%	19,661.58
TCS	17.17	50.36%	67.57%	8,19,135.01
Infosys	16.55	29.19%	40.82%	4,53,824.26
HCLTECH	18.64	23.63%	31.85%	3,07,349.71

Sagility’s ROCE significantly exceeds all peers, reflecting superior capital efficiency, though its P/E is higher than TCS and Infosys.

Risks & Concerns

Wage inflation in Karnataka and Telangana may pressure margins in Q2, though offset by FX tailwinds and efficiency initiatives.

Adjusted EBITDA margin declined 40 bps due to statutory wage hikes and 50 bps from salary increases, indicating near-term margin sensitivity.

No specific risks identified beyond wage inflation and FX volatility; guidance remains reaffirmed.

Quarterly Trend

Quarter	Revenue (₹ Cr)	Net Profit (₹ Cr)	OPM%
Q3FY25	1,453.07	216.91	26.99
Q2FY25	1,325.05	117.34	22.73

CRITICAL: Quarterly trend data is provided for Q3FY25 and Q2FY25, but the current filing covers Q1 FY2027. The trend shows improving profitability (OPM rose from 22.73% to 26.99%), though the current quarter’s margin (24%) is below Q3FY25’s peak. The filing does not provide Q1 FY2027 quarterly trend data, so this section is limited to the provided quarters. The company’s margin guidance (24-25%) aligns with current performance, suggesting stability in operational efficiency.

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About SAGILITY LIMITED (SAGILITY)

Information Technology · IT - Services · Listed on NSE

Market Cap: ₹19,661.58 Cr P/E: 21.3

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Source: Stock Announcements. Analysis by StockFin.ai. For informational purposes only — not investment advice.

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