SAGILITY LIMITED Earnings Summary — Q1 FY2027
Sagility Limited Reports Strong Q1 FY2027 Performance with 27.6% Revenue Growth and CareSeed Acquisition
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 3.0% sequentially in Q1 FY2027.
- Revenue of ₹1,963 Cr is 27.6% higher year-on-year.
- Revenue has compounded at 20.8% annualised over the last 10 quarters.
- Net profit of ₹217 Cr is 45.9% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 55.6% annualised across the period.
- Operating margin stands at 22.3% in Q1 FY2027.
- Operating margin compressed by 17 bps year-on-year.
- Over the last two years operating margin has expanded by 647 bps.
- PBT margin is 14.6%.
- Expenses grew 27.9% against revenue growth of 27.6%.
- Operating profit of ₹438 Cr is 26.6% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 74/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,963 | 2,024 | 1,971 | 1,659 | 1,539 | 1,568 | 1,453 | 1,325 | 1,223 | 1,283 |
| Expenses | Improving | 1,525 | 1,540 | 1,460 | 1,243 | 1,193 | 1,195 | 1,061 | 1,024 | 1,029 | 976 |
| Operating Profit | Improving | 438 | 485 | 511 | 415 | 346 | 373 | 392 | 301 | 194 | 307 |
| Operating Margin | Stable | 22.3% | 23.9% | 25.9% | 25.0% | 22.5% | 23.8% | 27.0% | 22.7% | 15.8% | 23.9% |
| Other Income | Volatile | -1 | 25 | -24 | 58 | 10 | 10 | 44 | 15 | 24 | 5 |
| Interest | Softening | 22 | 22 | 25 | 25 | 27 | 30 | 30 | 30 | 37 | 43 |
| Depreciation | Stable | 128 | 124 | 124 | 122 | 118 | 114 | 116 | 126 | 110 | 176 |
| Profit Before Tax | Volatile | 287 | 363 | 339 | 327 | 210 | 239 | 290 | 160 | 71 | 93 |
| Tax | Volatile | 71 | 105 | 71 | 76 | 62 | 56 | 73 | 43 | 49 | 13 |
| Net Profit | Volatile | 217 | 258 | 268 | 251 | 149 | 183 | 217 | 117 | 22 | 80 |
| Net Margin | Volatile | 11.0% | 12.7% | 13.6% | 15.1% | 9.7% | 11.6% | 14.9% | 8.9% | 1.8% | 6.3% |
Key Takeaways
- Revenue growth for Q1 FY27 reached 27.6% YoY (15.2% in constant currency), driven by organic momentum and expansion in the payer segment.
- Sagility acquired 100% of CareSeed LLC on June 11, 2026, for a contractual consideration of $30 million, strengthening its Medicare Advantage and mid-market reach.
- Adjusted EBITDA stood at ₹4,716 million with a margin of 24.0%, maintaining profitability despite seasonal softening from the prior quarter.
- The company secured $35.3 million in steady-state ACV durante the quarter, adding 27 clients globally, primarily through the CareSeed transaction.
- A one-time exceptional expense of ₹150.89 million was recognized due to revised minimum wage rates in Karnataka and Telangana and subsequent salary restructuring.
- Payer vertical continues to dominate the revenue mix at 89.6%, while Provider revenue grew 14.4% YoY.
- The employee base increased to 47,307, while voluntary attrition improved significantly to 28.6% from 38.1% in the prior quarter.
- Management noted a temporary QoQ revenue softening due to the exit of the Q4 Open Enrollment/Annual Enrollment Period (OE/AEP) season.
Management Guidance
Management expects low double-digit constant currency growth for FY27. Adjusted EBITDA margin guidance remains between 24% and 25%, with potential to track toward the upper end if foreign exchange rates remain stable.
Sentiment Shift
Improving
The company has demonstrated successful integration of acquisitions and strong organic growth, with significant client additions and improving attrition rates despite macro cost pressures in the US healthcare sector.
Outlook
The outlook remains healthy following the acquisition of CareSeed, which adds HEDIS and risk adjustment solutions. Robust cash flows are expected to support continued debt repayment and inorganic growth investments.
From the Annual Report (Key Quotes)
“Our performance reflects the strength of Sagility’s healthcare-focused model, the depth of our client relationships and our strong execution across markets.”
“The future of healthcare operations lies in more integrated, intelligent operating models.”
“We have started the year on a strong note, supported by healthy business momentum, resilient profitability and robust cash generation.”
Official Quarterly Documents
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This summary is AI-generated from SAGILITY LIMITED's latest quarterly filing and earnings call. For informational purposes only — not investment advice.