Sagility Ltd
Sagility Ltd
Information TechnologyKey Fundamentals
SmallcapIT Enabled ServicesInformation TechnologyInsights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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47 extracted metrics + investor summaries across FY22–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
1- Company has reduced debt.
Weaknesses
1- Company has a low return on equity of 7.59% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 16h agoSagility India Ltd is a healthcare-focused BPM company serving the US market with a market cap of ~₹19,900 crore, trading at a PE of 19.9x. The company delivered FY25 revenue of ₹5,570 crore (up 17% YoY) with TTM sales growth of 29% and TTM profit growth of 54%, though its 3-year average ROE remains modest at ~7.6%.
- TTM revenue growth of 29% demonstrates strong top-line momentum, with FY25 revenue reaching ₹5,570 crore (up 17% YoY)
- TTM profit growth of 54% signals rapid earnings expansion, with Q3 FY25 net profit surging 207% YoY to ₹217 crore
- 3-year compounded profit CAGR of 86% shows a sustained earnings recovery trajectory
- EBITDA margin expanded from 22.7% to 27% in Q3 FY25, indicating improving operational efficiency and scale benefits
- Debt-to-equity ratio stands at just 0.12x, and the company has been actively reducing debt, strengthening balance sheet flexibility
- PE of 19.9x is reasonable relative to IT services peers, given the above-sector profit growth rates
- Pure-play US healthcare BPM positioning provides a focused niche with 3-year sales CAGR of 19%, aided by acquisitions like BroadPath Healthcare Solutions
- ROE improved from 6% (5-year average) to 11% in the last year, indicating a positive trend in capital efficiency
- 3-year average ROE of only 7.6% remains well below typical IT sector benchmarks of 20%+, signaling weak capital efficiency historically
- Near-total revenue dependence on the US healthcare sector creates high geographic and sector concentration risk
- Promoter Sagility B.V. (EQT-owned) holds ~51% and has been selling down from 100% post-IPO, creating ongoing supply overhang
- Stock has delivered -5% return over 1 year despite strong earnings growth, suggesting market skepticism on sustainability
- Dividend yield of just 0.35% offers minimal income return to shareholders
- Price-to-book ratio of 2.05x on a sub-8% historical ROE implies the market is pricing in significant future improvement that may not materialize
- BroadPath acquisition-driven growth introduces integration risks and may inflate reported organic growth rates
- Exposure to US healthcare regulatory changes (Medicare/Medicaid policy shifts, AI automation in claims processing) poses medium-term disruption risk
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 16h ago- Minimum wage hike margin drag Jul 22
Karnataka and Telangana minimum wage hikes create a 120-basis-point headwind on adjusted EBITDA margins in FY27, though management notes actual impact may be lower than anticipated.
- Q1 profit surges 45.9% YoY Jul 21
Net profit rose 45.9% YoY to ₹2,168 million in Q1 FY27, with revenue up 27.6% to ₹19,635 million driven by steady-state performance.
- FY27 margin guidance maintained Jul 22
Sagility reaffirmed low double-digit constant currency revenue growth and 24.0%-25.0% adjusted EBITDA margin guidance for FY27, with potential upside if minimum wage impact is lighter than expected.
- AI and managed services focus Jul 22
Long-term strategy centered on technology analytics, AI, and transformative managed service contracts, with a full-year outlook update expected by end of Q2 during enrollment season.
- Investor meet Jul 30-31 Mumbai Jul 27
Sagility scheduled physical investor meetings in Mumbai for July 30-31, 2026, to discuss public domain developments under SEBI LODR Regulation 30.
- FY26 BRSR filed with assurance Jul 27
Submitted Business Responsibility and Sustainability Report for FY26 with DNV-assured data on emissions, waste, and workforce metrics.
- Aug 7 dividend record date set Jul 22
Record date for final dividend entitlement fixed at August 7, 2026, with AGM scheduled for August 20, 2026 via video conferencing.
- PwC re-appointed internal auditor Jul 21
PricewaterhouseCoopers Services LLP re-appointed as internal auditor from October 1, 2026 to March 31, 2028 following Audit Committee recommendation.
TL;DR: Sagility delivered a strong Q1 FY27 with 45.9% profit growth and 27.6% revenue growth, while maintaining full-year margin guidance of 24-25% EBITDA despite minimum wage headwinds. The company's healthcare IT focus, AI strategy, and managed services pipeline support the growth narrative. The key near-term risk is the 120 bps margin drag from state-level wage hikes, though management sees potential upside. The trend is positive with execution on track, and the enrollment season update in Q2 will be the next important catalyst.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 1,116 | 1,094 | 1,260 | 1,283 | 1,223 | 1,325 | 1,453 | 1,568 | 1,539 | 1,658 | 1,971 | 2,024 | 1,963 |
| Expenses | 852 | 860 | 1,000 | 976 | 1,029 | 1,024 | 1,061 | 1,195 | 1,193 | 1,243 | 1,460 | 1,540 | 1,525 |
| Operating Profit | 264 | 234 | 260 | 307 | 194 | 301 | 392 | 373 | 346 | 415 | 511 | 485 | 438 |
| OPM % | 24% | 21% | 21% | 24% | 16% | 23% | 27% | 24% | 22% | 25% | 26% | 24% | 22% |
| Other Income | 11 | 29 | 6 | 5 | 24 | 15 | 44 | 10 | 10 | 58 | -24 | 25 | -1 |
| Interest | 47 | 48 | 47 | 43 | 37 | 30 | 30 | 30 | 27 | 25 | 25 | 22 | 22 |
| Depreciation | 166 | 171 | 176 | 176 | 110 | 126 | 116 | 114 | 118 | 122 | 124 | 124 | 128 |
| PBT | 62 | 43 | 44 | 93 | 71 | 160 | 290 | 239 | 210 | 327 | 339 | 363 | 287 |
| Tax % | 31% | 19% | -62% | 14% | 69% | 27% | 25% | 24% | 29% | 23% | 21% | 29% | 25% |
| Net Profit | 42 | 35 | 71 | 80 | 22 | 117 | 217 | 183 | 149 | 251 | 268 | 258 | 217 |
| EPS in Rs | 0.22 | 0.18 | 0.37 | 0.19 | 0.05 | 0.25 | 0.46 | 0.39 | 0.32 | 0.54 | 0.57 | 0.55 | 0.46 |
Profit & Loss
| Mar 2022 8m | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|
| Sales | 923 | 4,218 | 4,754 | 5,570 | 7,193 | 7,617 |
| Expenses | 730 | 3,179 | 3,665 | 4,263 | 5,428 | 5,768 |
| Operating Profit | 193 | 1,039 | 1,088 | 1,307 | 1,765 | 1,849 |
| OPM % | 21% | 25% | 23% | 23% | 25% | 24% |
| Other Income | 18 | 5 | 28 | 47 | 61 | 58 |
| Interest | 65 | 215 | 185 | 127 | 99 | 94 |
| Depreciation | 147 | 644 | 689 | 467 | 487 | 497 |
| PBT | -2 | 186 | 242 | 760 | 1,239 | 1,316 |
| Tax % | 152% | 23% | 6% | 29% | 25% | — |
| Net Profit | -5 | 144 | 228 | 539 | 925 | 993 |
| EPS in Rs | -0.02 | 0.75 | 0.53 | 1.15 | 1.98 | 2.12 |
| Div. Payout % | 0% | 0% | 0% | 0% | 8% | — |
Balance Sheet
| Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|
| Equity Capital | 1,919 | 1,919 | 4,285 | 4,679 | 4,679 |
| Reserves | 2,108 | 4,288 | 2,158 | 3,657 | 4,980 |
| Borrowings | 4,788 | 2,896 | 2,532 | 1,402 | 1,111 |
| Other Liabilities | 1,271 | 1,427 | 1,554 | 1,179 | 1,680 |
| Total Liabilities | 10,085 | 10,529 | 10,529 | 10,917 | 12,450 |
| Fixed Assets | 8,621 | 8,607 | 8,667 | 8,997 | 9,352 |
| CWIP | 5 | 0 | 6 | 0 | 43 |
| Investments | 0 | 0 | 0 | 0 | 336 |
| Other Assets | 1,459 | 1,922 | 1,856 | 1,920 | 2,719 |
| Total Assets | 10,085 | 10,529 | 10,529 | 10,917 | 12,450 |
Cash Flow
| Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|
| Operating | -32 | 857 | 973 | 1,214 | 1,203 |
| Investing | -7,711 | -101 | -463 | -958 | -687 |
| Financing | 8,116 | -545 | -751 | -256 | -501 |
| Net Cash Flow | 374 | 211 | -241 | 0 | 14 |
| Free Cash Flow | -39 | 716 | 791 | 1,092 | 1,011 |
| CFO/OP | -12 | 99 | 101 | 106 | 89 |
Ratios
| Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|
| Debtor Days | 366 | 92 | 91 | 83 | 93 |
| Cash Conversion Cycle | 366 | 92 | 91 | 83 | 93 |
| Working Capital Days | 58 | 13 | -6 | 25 | 7 |
| ROCE % | — | 5% | 5% | 10% | 13% |
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Company Information
Incorporated in July 2021, Sagility India Limited (formerly Berkmeer India Pvt. Ltd) provides healthcare-focused technology-enabled solutions and services primarily to U.S.-based clients in the payer and provider segments.[1]