Sagility (SAGILITY) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue reached INR 19,712 million ($222M), up 35.7% YoY, with 19.9% organic growth, driven by strong payer and provider segment performance and the successful BroadPath integration.

• Adjusted EBITDA for Q3 was INR 5,125 million (26.0% margin), and adjusted PAT was INR 3,229 million (16.4% margin), both up over 23% YoY.

• Nine-month FY26 revenue totaled INR 51,686 million ($591.8M), with adjusted EBITDA of INR 13,164 million and adjusted PAT of INR 8,236 million.

• $30.5M in new and expanded business was won in Q3 FY26, with 81 active clients and 25 client wins in the quarter.

• Workforce reached 48,522 across five countries, with annual attrition steady at 22.8%.

Financial highlights

• Q3 FY26 revenue grew 35.7% YoY; adjusted EBITDA margin was 26.0%, and adjusted PAT margin was 16.4%.

• 9M FY26 revenue grew 29.2% YoY; adjusted EBITDA margin was 25.5%, and adjusted PAT margin was 15.9%.

• Adjusted EPS for TTM Dec 25 was 2.27 INR, up 47% YoY.

• Adjusted ROCE remained strong at 54.9% for TTM Dec 25.

• Operating cash flow conversion at nine months was 49.7%, impacted by higher DSO at 86 days.

Outlook and guidance

• FY26 constant currency revenue growth guidance raised to 22.5%, with organic growth at 13.8%.

• Adjusted EBITDA margin guidance maintained at 25% for the full fiscal year.

• Debt is expected to be fully repaid by FY27, with declining interest payments and amortization expenses.

• Management remains confident in medium-term low to mid-teen organic growth, with additional upside from acquisitions.

• Strategic capital allocation will prioritize investments in AI, domain capabilities, and workforce development.