Sagility (SAGILITY) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached ₹13,250 million ($157.9 million), up 21.1% YoY and 8.3% QoQ, driven by client expansion, technology investments, and new client wins.

• Adjusted EBITDA grew 22.2% YoY to ₹3,378 million (25.5% margin), with adjusted PAT up 30.5% YoY to ₹1,636 million (12.3% margin).

• Focused exclusively on U.S. healthcare, leveraging technology, GenAI, and M&A to enhance capabilities and market reach, especially in mid-market segments.

• Client relationships are long-tenured, with top five clients averaging 17 years, and NPS improved to 53.

• Successfully listed on BSE and NSE in November 2024, completing a major IPO and expanding through acquisitions.

Financial highlights

• Q2 FY25 revenues: ₹13,250 million ($157.9 million), up 21.1% YoY and 8.3% QoQ; H1 FY25: ₹25,484 million ($304.5 million), up 15.3% YoY.

• Adjusted EBITDA for Q2: ₹3,378 million (25.5% margin), up 22.2% YoY; H1: ₹6,538 million (25.7% margin).

• Adjusted PAT for Q2: ₹1,636 million (12.3% margin), up 30.5% YoY; H1: ₹3,083 million (12.1% margin).

• Operating cash flow for H1: ₹6,089 million, 114% of reported EBITDA.

• Free cash flow in H1: ₹5,407 million; debtor DSO at 72.5 days.

Outlook and guidance

• Full-year FY25 growth expected to align with H1 performance, maintaining steady EBITDA margins.

• Continued focus on expanding in mid-market and small payer segments, deepening client relationships, and investing in technology and M&A.

• GenAI initiatives and automation expected to drive further operational efficiencies.

• Management highlights a long runway for growth, supported by favorable industry dynamics and strategic investments in advanced technologies.