Sagility (SAGILITY) Q1 25/26 earnings summary

Executive summary

• Entered FY 2026 with strong operational momentum, leveraging healthcare domain expertise and technology, including AI, to drive efficiency for payer and provider clients amid regulatory and cost pressures.

• Q1 FY26 saw revenue grow 25.8% year-over-year to INR 15,389 million, with organic growth at 17.9% and adjusted PAT up 38.0%.

• Won new business from 18 existing clients and onboarded 4 new clients, securing $32 million in potential annual contract value.

• Recognized as a leader in healthcare transformation and awarded Most Preferred Workplace FY 2026.

• Integration of BroadPath acquisition is progressing smoothly, supporting growth and operational efficiency.

Financial highlights

• Q1 FY26 consolidated revenue was INR 15,389 million ($180.4 million), up 25.8% year-over-year in INR and 23.1% in constant currency.

• Adjusted EBITDA reached INR 3,687 million ($43.2 million), up 26.5% year-over-year, with a margin of 24%.

• Adjusted profit after tax was INR 1,997 million, up 38% year-over-year, with a margin of 13%.

• Adjusted EPS for Q1 FY26 was Rs 0.43, up 30.5% year-over-year.

• Operating cash flow for Q1 FY26 was INR 3,211 million, with a conversion rate of 90.2%.

Outlook and guidance

• Organic growth expected in the low-to-mid teens in constant currency; with BroadPath, growth expected to exceed 20% for FY 2026.

• Adjusted EBITDA margin guidance raised to 24%+ for FY 2026, reflecting strong Q1 performance.

• Management expects continued revenue momentum and stable margins, supported by cost optimization and BroadPath integration.