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 15h agoSagility Ltd is a healthcare-focused IT-BPM company serving US payers and providers, trading at a market cap of ₹20,448 Cr with a PE of 20.6x. Revenue grew 29% TTM to ~₹7,193 Cr in FY26 while net profit surged 54% TTM to ~₹925 Cr, though 3-year ROE remains modest at ~8% and the stock has declined 6% over the past year.
- Revenue grew 29% TTM (FY26 sales of ₹7,193 Cr vs ₹5,570 Cr in FY25), demonstrating strong top-line momentum
- Net profit surged 54% TTM to ₹925 Cr in FY26, with 3-year compounded profit growth of 86% CAGR
- Operating profit margin expanded to ~24.1% in FY26 from 23.1% in FY25, with management guiding 24-25% adjusted EBITDA margins
- Debt-to-equity ratio has fallen to 0.12x, making the company virtually debt-free compared to historical levels when interest costs were ₹215 Cr in FY23 vs ₹99 Cr in FY26
- Q1 FY27 organic revenue growth of 14.9% in constant currency significantly outperforms muted industry backdrop
- Focused exclusively on the large US healthcare IT-BPM market (payers and providers), serving over 25,000 employees across 5 countries with deep domain specialisation
- FY26 adjusted PAT of ₹1,131 Cr grew 39.5% YoY, reflecting improving profitability leverage on the business model
- Interest costs declined from ₹215 Cr in FY23 to ₹99 Cr in FY26, freeing up cash flow for growth and shareholder returns (initiated dividend payout of 7.6% in FY26)
- 3-year average ROE of only 7.6-8%, well below IT sector peers, indicating suboptimal capital efficiency
- Stock has declined 6% over the past 1 year despite strong earnings growth, suggesting market concerns about valuation or sustainability
- Concentration risk from single-industry exposure to US healthcare, making it vulnerable to regulatory changes like Medicare/Medicaid policy shifts
- PE of 20.6x prices in significant growth expectations; any execution miss could lead to de-rating
- Operating margin dipped QoQ in Q1 FY27 with a 120 bps headwind from wage increases in Karnataka and Telangana, pressuring near-term profitability
- Limited operating history as a listed entity (IPO in November 2024 at ₹28-30 per share), making long-term track record assessment difficult
- Revenue is predominantly US-dollar denominated, exposing the company to INR appreciation risk that could compress reported margins
- Price-to-book ratio of 2.12x against an ROE of ~11% suggests the market is pricing in future improvement that is not yet reflected in returns on equity
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- Minimum wage hike headwind Jul 22
Karnataka and Telangana minimum wage hikes create a 120-basis-point drag 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 growing 27.6% to ₹19,635 million driven by steady-state performance.
- FY27 margin guidance maintained Jul 22
Management 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 lower than expected.
- AI and managed services strategy Jul 22
Long-term strategy remains focused on technology analytics, AI, and transformative managed service contracts, with a full-year outlook update expected by end of Q2 during enrollment season.
- FY26 final dividend declared Jul 22
Final dividend of Rs 0.10 per share with record date August 7, 2026, and payment due on or before September 18, 2026.
- Investor meet Jul 30-31 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.
- PwC re-appointed internal auditor Jul 21
PricewaterhouseCoopers Services LLP re-appointed as internal auditor for October 1, 2026 to March 31, 2028, following Audit Committee recommendations.
- Director re-appointment recommended Jul 9
Board recommended re-appointing Hari Gopalakrishnan as Non-Executive Non-Independent Director at the upcoming AGM scheduled for August 20, 2026.
- Dividend TDS submission deadline Jul 17
Shareholders must submit TDS forms by August 11, 2026 to ensure correct tax deduction on the FY26 final dividend of Rs 0.10 per share.
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. The key near-term risk is a 120 bps margin headwind from state minimum wage hikes, though management flags potential upside if actual impact is softer. The trend is positive with robust top-line momentum and a clear strategic focus on AI and managed services, making the enrollment season update by end-Q2 a key catalyst to watch.
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]