Sagility (SAGILITY) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 revenue reached ₹14,531 million ($172 million), up 15.3% year-on-year, driven by client expansion, operational excellence, and Open Enrollment seasonality.

• Adjusted EBITDA for Q3 FY25 was ₹4,567 million ($54.1 million), up 67.3% year-on-year, with margin at 31.4%.

• Adjusted PAT for Q3 FY25 rose 67.6% year-on-year to ₹2,626 million, with margin at 18.1%.

• The company completed the acquisition of BroadPath Healthcare Solutions, expanding mid-market access, adding 30+ clients, and bringing a proprietary platform.

• Unaudited standalone and consolidated financial results for Q3 and nine months ended 31 December 2024 were approved and released.

Financial highlights

• YTD FY25 revenues reached ₹40,014 million ($476.5 million), up 15.3% year-on-year; adjusted EBITDA grew 30.2% and adjusted PAT 34.5%.

• Operating cash flow for YTD Dec FY25 was ₹9,132 million, 94% of EBITDA; free cash flow was ₹8,009 million.

• Net debt as of Dec'24 was ₹21,678 million, with net debt/EBITDA at 1.85x; free cash flow stood at 82.5% of EBITDA.

• Adjusted EPS for Q3 FY25 was ₹0.56, up 60.5% sequentially.

• Other income contributed ₹440 million in Q3 FY25, supporting higher PAT.

Outlook and guidance

• Growth in INR terms for FY25 is expected to mirror the nine-month YTD growth rate.

• Long-term growth is projected in the low to mid-teens, with annual EBITDA margin guidance at 24%-25%.

• Q4 is expected to benefit from early Open Enrollment seasonality, with ramp-down starting mid-January.

• BroadPath acquisition is expected to be EPS accretive from day one and funded entirely from cash.

• Management projects ongoing debt repayments and interest payments through FY29.