Sagility (SAGILITY) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 revenue grew 25.8% year-over-year to INR 15,389 million ($180.4 million), with organic growth at 17.9% and adjusted PAT up 38.0%.

• Achieved broad-based growth across payer and provider businesses, with enduring client relationships, 18 expansions from existing clients, and 4 new client onboardings.

• Recognized as a leader in healthcare transformation and awarded Most Preferred Workplace FY26.

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

• AI deployment expanded to 18 use cases for 8 clients, with 15 more in development, and internal AI use cases improving recruitment and training.

Financial highlights

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

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

• Adjusted profit after tax was INR 1,997 million (13.0% margin), a 38% year-on-year increase.

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

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

Outlook and guidance

• Expecting low-to-mid teen organic growth in constant currency for FY26; with BroadPath, confident of 20%+ growth.

• Adjusted EBITDA margin guidance raised to 24%+ for FY26, reflecting strong Q1 performance.

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

• Healthy cash flows to support reinvestment in capability building and digital transformation.

• Anticipated increase in outsourcing by payers and providers to manage costs amid industry headwinds.