Sagility (SAGILITY) Q4 25/26 earnings summary

Executive summary

• Achieved 29.1% year-over-year revenue growth in FY26, driven by strong execution, new client wins, and expansion within existing accounts, despite a challenging healthcare payer environment and regulatory pressures.

• Adjusted EBITDA margin remained robust at 25.1%-25.3% for FY26, with adjusted PAT up 39.5% year-over-year, supported by operational efficiency, declining finance costs, and higher forex gains.

• Added 17 new clients in FY26, including sizable regional plans, and expanded relationships with existing accounts; 31 delivery centers across 5 countries.

• Enhanced capabilities and client support through the BroadPath acquisition and AI-led initiatives, positioning as a tech and AI-led healthcare operations partner.

• Board recommended a final dividend of ₹0.10 per share, subject to shareholder approval.

Financial highlights

• FY26 revenue: ₹71,929 million (US$814.0 million), up 29.1% year-over-year; Q4 FY26 revenue: ₹20,243 million (US$222.1 million), up 29.1% YoY.

• Adjusted EBITDA: ₹18,200 million (US$206.0 million), margin 25.1%-25.3%; Q4 adjusted EBITDA: ₹5,036 million (US$55.2 million), margin 24.9%.

• Adjusted PAT: ₹11,306 million (US$127.9 million), margin 15.7%, up 39.5% YoY; Q4 adjusted PAT: ₹3,069 million, margin 15.2%.

• Basic EPS: ₹1.98, up 69.2% YoY; adjusted EPS: ₹2.42, up 37.6%.

• Operating cash flow for FY26: ₹12,030 million; OCF conversion: 64.7%; free cash flow: ₹10,108 million.

Outlook and guidance

• FY27 revenue growth guided at low double digits in constant currency, with adjusted EBITDA margin guidance of 24%-25%.

• Continued investment in AI, technology-led transformation, and M&A, with cost optimization and automation-led models expected to gain traction.

• Seasonal revenue share expected to remain elevated due to BroadPath and new seasonal work.