Sagility (SAGILITY) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue rose 22.5% YoY to ₹20,321 million; constant-currency growth was 12.2%, with adjusted EBITDA margin at 26.3%.

• FY27 organic revenue growth guidance remained low double-digit in constant currency; adjusted EBITDA margin guidance increased to 25%-26%.

• Chirok adds provider revenue-cycle capabilities; the acquisition agreement was subject to closing conditions as of Board approval.

Financial highlights

• Q2 adjusted EBITDA was ₹5,353 million, up 23.0% YoY; adjusted PAT was ₹3,254 million, up 8.1%, with a 16.0% margin.

• Q2 organic revenue growth excluding CareSeed was 22.2% in INR and 11.9% in constant currency.

• H1 revenue was ₹39,956 million, up 25.0% reported and 13.7% in constant currency; organic growth was 24.7% reported and 13.4% in constant currency.

• H1 adjusted EBITDA was ₹10,069 million, up 25.2%, with a 25.2% margin; adjusted PAT was ₹5,951 million, up 18.9%, with a 14.9% margin.

Outlook and guidance

• FY27 guidance is low double-digit organic revenue growth in constant currency; CareSeed and Chirok contributions are incremental to guidance.

• FY27 adjusted EBITDA margin guidance rose from 24%-25% to 25%-26%, supported by operating efficiencies and broadly steady FX assumptions.

• AEP and Open Enrollment revenue is expected to be slightly lower than last year; current visibility suggests a contribution ~100 bps lower, subject to seasonal volumes.

• H2 was described as seasonally stronger; longer-term adjusted EBITDA margins are expected within 24%-26%.