Sagility Ltd
Sagility Ltd
Information TechnologyIncorporated 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]
Sagility Ltd shows exceptional profit growth of 74% TTM and 29% sales growth with unanimous analyst buy ratings (9/9). However, low ROE of 7.58% over 3 years and a PE of 20.2x warrant monitoring, though the growth trajectory and debt reduction efforts support a buy at current levels.
Key Fundamentals
SmallcapIT Enabled ServicesInformation TechnologyTechnical Indicators
Key Insights
Strengths
2- Company has reduced debt.
- Company is expected to give good quarter
Weaknesses
1- Company has a low return on equity of 7.58% over last 3 years.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoSagility Ltd shows exceptional profit growth of 74% TTM and 29% sales growth with unanimous analyst buy ratings (9/9). However, low ROE of 7.58% over 3 years and a PE of 20.2x warrant monitoring, though the growth trajectory and debt reduction efforts support a buy at current levels.
- Compounded profit growth of 74% TTM indicates strong earnings momentum and operational leverage
- Revenue growth of 29% TTM significantly outpaces IT sector averages, showing market share gains
- Unanimous analyst consensus with 100% buy ratings (9 out of 9 analysts) reflects strong institutional conviction
- 3-year compounded profit CAGR of 86% demonstrates sustained earnings acceleration, not a one-off
- Company has actively reduced debt, improving balance sheet strength and financial flexibility
- ROE improved from 6% (5-year average) to 8% (3-year) to 11% (last year), showing a clear upward trajectory
- PE of 20.2x is reasonable for a company delivering 74% profit growth, implying a PEG ratio well below 1
- Expected to deliver a good upcoming quarter per market consensus, providing near-term catalyst
- 3-year average ROE of only 7.58% is below the 15% threshold typically expected for quality compounders
- Stock CAGR of -1% over 1 year despite strong fundamentals suggests market skepticism or overvaluation at listing
- Dividend yield of just 0.12% offers negligible income return to shareholders
- Price-to-book ratio of 1.94x combined with sub-8% ROE implies the stock is not generating adequate returns on invested capital
- Limited long-term track record with no 5-year or 10-year CAGR data available for sales, profit, or stock performance
- Market cap of Rs 18,866 crore on relatively thin historical financials creates valuation risk if growth decelerates
- 52-week high and low data unavailable (reported as 0), making technical risk assessment difficult
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- GST demand of Rs 90.44 lakh Jun 4
Sagility received a GST demand order of Rs 90,44,596 for FY23. The company plans to appeal the order, creating minor regulatory overhang.
- $30M strategic US acquisition Jun 12
Sagility announced a strategic acquisition through its U.S. subsidiary valued at up to $30 million. The deal strengthens its American operational framework and signals inorganic growth intent.
- ESOS 2026 tied to performance Jun 17
Sagility's ESOS 2026 links PSUs to revenue and margin targets over a 3-year vesting period. Performance-linked incentives align management with shareholder value creation.
- No share encumbrance in FY26 Jun 18
Sagility B.V. confirmed zero encumbrance on shares for FY ended 31 Mar 2026 under SEBI Reg 31(4), indicating clean promoter holding.
- Shareholder vote for ESOS 2026 May 29
Sagility initiated postal ballot for ESOS 2026 approval with e-voting from May 30 to June 28, 2026. This is a routine procedural step for the stock option scheme.
TL;DR: Sagility is pursuing inorganic growth with a $30M US acquisition while aligning employee incentives to revenue and margin targets via ESOS 2026. The GST demand of Rs 90.44 lakh is minor and being contested. No material headwinds are visible, and the overall trend is mildly positive with the company investing in US expansion and performance-driven compensation.
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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Expenses | 852 | 860 | 1,000 | 976 | 1,029 | 1,024 | 1,061 | 1,195 | 1,193 | 1,243 | 1,460 | 1,540 |
| Operating Profit | 264 | 234 | 260 | 307 | 194 | 301 | 392 | 373 | 346 | 415 | 511 | 485 |
| OPM % | 24% | 21% | 21% | 24% | 16% | 23% | 27% | 24% | 22% | 25% | 26% | 24% |
| Other Income | 11 | 29 | 6 | 5 | 24 | 15 | 44 | 10 | 10 | 58 | -24 | 25 |
| Interest | 47 | 48 | 47 | 43 | 37 | 30 | 30 | 30 | 27 | 25 | 25 | 22 |
| Depreciation | 166 | 171 | 176 | 176 | 110 | 126 | 116 | 114 | 118 | 122 | 124 | 124 |
| PBT | 62 | 43 | 44 | 93 | 71 | 160 | 290 | 239 | 210 | 327 | 339 | 363 |
| Tax % | 31% | 19% | -62% | 14% | 69% | 27% | 25% | 24% | 29% | 23% | 21% | 29% |
| Net Profit | 42 | 35 | 71 | 80 | 22 | 117 | 217 | 183 | 149 | 251 | 268 | 258 |
| 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 |
Profit & Loss
| Mar 2022 8m | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|
| Sales | 923 | 4,218 | 4,754 | 5,570 | 7,193 |
| Expenses | 730 | 3,179 | 3,665 | 4,263 | 5,433 |
| Operating Profit | 193 | 1,039 | 1,088 | 1,307 | 1,760 |
| OPM % | 21% | 25% | 23% | 23% | 24% |
| Other Income | 18 | 5 | 28 | 47 | 65 |
| Interest | 65 | 215 | 185 | 127 | 99 |
| Depreciation | 147 | 644 | 689 | 467 | 487 |
| PBT | -2 | 186 | 242 | 760 | 1,239 |
| Tax % | 152% | 23% | 6% | 29% | 25% |
| Net Profit | -5 | 144 | 228 | 539 | 925 |
| EPS in Rs | -0.02 | 0.75 | 0.53 | 1.15 | 1.98 |
| 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 | 1,831 |
| Total Liabilities | 10,085 | 10,529 | 10,529 | 10,917 | 12,601 |
| Fixed Assets | 8,621 | 8,607 | 8,667 | 8,997 | 9,356 |
| CWIP | 5 | 0 | 6 | 0 | 39 |
| Investments | 0 | 0 | 0 | 0 | 336 |
| Other Assets | 1,459 | 1,922 | 1,856 | 1,920 | 2,870 |
| Total Assets | 10,085 | 10,529 | 10,529 | 10,917 | 12,601 |
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 | -711 |
| Financing | 8,116 | -545 | -751 | -256 | -501 |
| Net Cash Flow | 374 | 211 | -241 | 0 | -9 |
| Free Cash Flow | -39 | 716 | 791 | 1,092 | 1,011 |
| CFO/OP | -12 | 99 | 101 | 106 | 90 |
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 | 24 |
| ROCE % | — | 5% | 5% | 10% | 13% |
Documents
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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]