This article first appeared on GuruFocus .
-
Q4 Revenue:INR 20,243 million (USD 222.1 million), 29.1% YoY growth in INR terms, 22.2% in constant currency.
-
Q4 Adjusted EBITDA:INR 5,036 million (USD 55.2 million), with margins of 24.9%.
-
Q4 Adjusted PAT:INR 3,069 million (USD 33.6 million), with margins of 15.2%.
-
FY26 Revenue:INR 71,929 million (USD 814 million), 29.1% YoY growth in INR terms, 23.6% in constant currency.
-
FY26 Adjusted EBITDA:INR 18,200 million (USD 206 million), with a margin of 25.3%.
-
FY26 Adjusted PAT:INR 11,306 million (USD 127.9 million), up 39.5% YoY, with a margin of 15.7%.
-
Operating Cash Flow Conversion:104.6% for Q4.
-
DSO:87 days at quarter end.
-
Employee Strength:46,860 as of the end of Q4.
-
Dividend:Final dividend of Rs. 0.1 or 10 paise per share recommended.
-
Top Five Clients Growth:11.7% YoY in FY26.
-
New Clients Added:17 in FY26.
-
Seasonal Revenues:Accounted for 6% of FY26 revenues.
-
Debt Repayment Plan:On track to repay current debt by end of FY27.
-
Cash Position:INR 9,038 million at the end of Q4.
Release Date: May 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
-
Sagility Ltd ( NSE:SAGILITY ) reported a strong revenue growth of 29.1% year-on-year in INR terms for Q4 FY26, with a 22.2% increase in constant currency.
-
The company achieved an adjusted EBITDA margin of 24.9% for Q4, reflecting strong operational execution and cost management.
-
Sagility Ltd added 17 new clients in FY26, including sizable regional plans and blues, setting a solid foundation for future growth.
-
The acquisition of Broadpath has strengthened Sagility Ltd's ability to support seasonal and member-facing operations, enhancing its service offerings.
-
The company received multiple leader recognitions from Nelson Hall, Everest Group, and ISG, reinforcing its position in intelligent healthcare operations.
Negative Points
-
The provider segment's revenue share decreased to 10.3% due to the Broadpath acquisition, which had a predominantly payer-focused revenue mix.
-
There was a slight uptick in attrition in FY26, attributed to higher seasonality compared to the previous year.
-
The expected 110 bps margin decline versus FY25 primarily reflects the full-year impact of the Broadpath acquisition.
-
Sagility Ltd faces ongoing cost pressures in the healthcare sector, impacting profitability and necessitating cost takeout initiatives.
-
The company's guidance for FY27 indicates a lower growth rate in the low double-digits in constant currency, reflecting potential challenges in deal timings and market conditions.
Q & A Highlights
Q: Will there be any impact due to AI in the future? A: Yes, AI is expected to generate efficiencies for clients, increasing productivity and lowering costs. While this may reduce some revenue, AI will help Sagility gain market share by transforming client operations and taking accountability for business outcomes. (Ramesh Gopalan, Managing Director and Group CEO)
Q: Are there any plans to increase dividend payments in FY27? A: While debt repayment is a priority, Sagility is also reserving funds for M&A activities. There is no firm commitment on increasing dividends, but it will be considered. (Ramesh Gopalan, Managing Director and Group CEO)
Q: What is the cumulative ACV number at the end of the year, and what does it imply for FY27 revenue growth? A: The cumulative ACV is around $130 million. Revenue generation timing varies, with some realized in FY26. Incremental revenues in FY27 will come from pipeline conversions and volume adjustments. (Ramesh Gopalan, Managing Director and Group CEO)
Q: What are the headwinds and tailwinds for margin assumptions in FY27? A: Key factors include employee wage increases, geographic revenue mix changes, and price adjustments. Positives include operational efficiencies and potential ForEx gains. The guidance is for a 24-25% margin. (Srinivas Mattapalli, Chief Financial Officer)
Q: Why is the guidance for FY27 lower than the 15% organic growth achieved in FY26? A: The guidance reflects current visibility and potential variability in deal timings. AI-related revenue compression is expected to be slightly higher than in previous years, contributing to a more conservative growth outlook. (Ramesh Gopalan, Managing Director and Group CEO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
