Sagility (SAGILITY) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 delivered exceptional results, with revenue up 35.7% YoY to INR 19,712 million, driven by strong payer and provider segments, robust open enrollment activity, and the BroadPath acquisition.

• Adjusted EBITDA for Q3 was INR 5,125 million (26.0% margin), and adjusted PAT was INR 3,229 million (16.4% margin), reflecting strong profitability.

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

• Strategic focus remains on expanding within existing accounts, building transformation-led managed services, and accelerating growth in mid and small market segments.

• Customer satisfaction in 2025 surpassed the industry median, reflecting operational excellence.

Financial highlights

• Q3 consolidated revenue was INR 19,712 million ($222M), up 35.7% YoY in INR and 29.1% in constant currency; organic growth was 19.9% YoY in INR.

• Adjusted EBITDA for Q3 was INR 5,125 million (26.0% margin); adjusted PAT for Q3 was INR 3,229 million (16.4% margin).

• Nine-month FY26 revenue was INR 51,686 million ($591.8M), up 29.2% YoY; adjusted EBITDA was INR 13,164 million (25.5% margin); adjusted PAT was INR 8,236 million (15.9% margin).

• Adjusted EPS for TTM Dec 25 was 2.27 INR, up 47% YoY; adjusted ROCE remained strong at 54.9%.

• Q3 operating cash flow conversion for nine months was 49.7%, impacted by higher accounts receivable and DSO.

Outlook and guidance

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

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

• Management remains confident in sustaining growth momentum, with a robust deal pipeline and focus on AI, domain capabilities, and workforce development.

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

• Ongoing impact of new Indian labour code expected to reduce margins by 0.2% of revenues.