Sagility (SAGILITY) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 saw strong revenue growth of 27.6% year-over-year to INR 19,635 million ($207.8M), with adjusted EBITDA of INR 4,716 million ($49.9M) and adjusted PAT of INR 2,697 million ($28.6M), maintaining healthy margins and robust cash generation.

• Growth was driven by healthcare-focused operations, client expansion, and disciplined execution, with organic growth from existing and new clients.

• The CareSeed acquisition enhanced healthcare analytics, quality, and expanded the client base by 26 new groups.

• The company is investing in technology, analytics, AI, and acquisitions to strengthen capabilities and expand in mid- and small-market segments.

• Recognized as a leader in healthcare operations and ranked among India's best workplaces.

Financial highlights

• Q1 FY27 revenue was INR 19,635 million ($207.8M), up 27.6% YoY and 15.2% in constant currency.

• Adjusted EBITDA margin stood at 24.0%, and adjusted PAT margin at 13.7%.

• Adjusted EPS for Q1 FY27 was 0.58, up 35.1% YoY; basic EPS was 0.46, up 45.9% YoY.

• Operating cash flow was INR 3,161 million, with EBITDA-to-cash conversion at 69.9%.

• Free cash flow for Q1 FY27 was INR 2,416 million after fixed asset additions.

Outlook and guidance

• FY27 guidance reiterated for low double-digit organic growth in constant currency.

• Margin guidance maintained at 24%-25%, absorbing a 120 basis points impact from minimum wage increases.

• Seasonal revenue uptick expected in Q3 and Q4, with greater visibility into full-year outlook by end of Q2.

• Focus on expanding healthcare quality offerings and leveraging CareSeed’s technology for integrated quality operations.

• The company remains focused on investing in growth, strengthening capabilities, and driving long-term value.