Sagility LimitedQ1 FY27 Results & Financial Update
Sagility Limited: Q1 FY27 consolidated results and company financials – revenue ₹1,963.50 Cr, PAT ₹216.80 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Sagility Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Sagility delivered a strong operational performance in Q1 FY27, recording revenue from operations of INR 1,963.5 crore, representing a robust year-on-year growth of 27.6% (15.2% in constant currency terms). Organic YoY revenue growth stood at an impressive 27.3%.
On a sequential basis, reported revenue softened by 3.0% compared to Q4 FY26 due to normal industry seasonality related to Open Enrollment and Annual Election Period (OE/AEP) cycles. Excluding seasonal revenues, steady-state organic revenue grew by 5.1% QoQ in constant currency terms.
Profitability remained resilient, with reported EBITDA for the quarter standing at INR 452.5 crore and adjusted EBITDA reaching INR 471.6 crore at a 24.0% margin. Adjusted PAT grew 35.1% YoY to INR 269.7 crore (reported PAT stood at INR 216.8 crore).
The quarter's earnings were impacted by statutory minimum wage increases in Karnataka and Telangana, which resulted in a one-time past service cost impact of INR 70 crore on employee benefits and an exceptional item of INR 151 crore for gratuity and compensated absences.
Operating cash generation remained strong, with operating cash flow (OCF) at INR 316.1 crore representing a 69.9% conversion on reported EBITDA, while Free Cash Flow (FCF) reached INR 241.6 crore despite ongoing acquisition-related earnout payments.
Strategic expansion continued during the quarter with the acquisition of CareSeed, a U.S.-based healthcare analytics firm specializing in HEDIS reporting and Medicare Advantage solutions, adding 26 new small and mid-sized health plan clients and enhancing platform depth.
01 · Business model
What does Sagility do?
Sagility Limited is a specialized healthcare operations partner that provides technology-led business process management, clinical services, and administrative support to U.S. healthcare payers, providers, and pharmacy benefit managers.
The company helps clients reduce operating costs, enhance member and provider experiences, and improve clinical quality through domain expertise combined with advanced analytics and automation.
Sagility's operating model serves major healthcare institutions, with primary business divisions spanning Payer and Provider segments, underpinned by a global delivery network across multiple countries and delivery centers.
02 · Historical context
What shaped the business before this quarter
Acquired CareSeed effective June 11, 2026, to expand capabilities in healthcare quality and Medicare Advantage solutions.
03 · Financial snapshot
Current quarter vs the two useful baselines
| Metric | Q1 FY27 | Year-ago | Previous quarter |
|---|---|---|---|
| Revenue from operations | ₹1,963.50 Cr | ₹1,538.90 Cr | ₹2,024.30 Cr |
| EBITDA | ₹452.50 Cr | ₹356.00 Cr | ₹509.40 Cr |
| Profit before tax | ₹287.50 Cr | ₹210.40 Cr | ₹363.20 Cr |
| Profit after tax | ₹216.80 Cr | ₹148.60 Cr | ₹257.70 Cr |
| EBITDA margin | 23.00% | 23.10% | 25.20% |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Secured $35.3 million of steady-state ACV driven by expansion within existing clients and rising contributions from FY26 new client wins.
Payer vertical continued to form the core revenue engine, contributing INR 1,758.5 crore or 89.6% of total operational revenue.
Added 27 new clients during Q1 FY27, including 26 clients onboarded through the CareSeed acquisition, bringing the active client group count to 109.
What drove margins
Statutory minimum wage hikes enacted in Karnataka and Telangana created an immediate employee benefit cost pressure of INR 70 crore during the quarter.
Reported EBITDA was impacted by a foreign exchange loss of INR 28.3 crore arising from foreign exchange hedging contracts.
Adjusted EBITDA margin was maintained at a steady 24.0%, supported by disciplined cost execution and ongoing productivity initiatives.
05 · Demand, customers & order book
Where demand is coming from
Secured $35.3 million in steady-state Annual Contract Value (ACV) through expansion opportunities and new statements of work across 18 existing clients and 1 new logo.
Maintained a strong concentration of enterprise relationships, with 9 clients contributing over $20 million and 8 clients contributing between $5 million and $20 million annually.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Generated INR 1,758.5 crore in revenue, accounting for 89.6% of the quarterly total and reflecting a 29.3% YoY growth.
Contributed INR 205.0 crore in revenue, representing 10.4% of total quarterly revenue and a 14.4% YoY increase.
Geography and market mix
Operated across 5 countries with a total of 29 delivery centers as of June 30, 2026.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Total employee count reached 47,307 at the end of Q1 FY27, an increase of 18.5% year-on-year.
Annualized voluntary attrition for employees with tenure exceeding 90 days improved significantly to 28.6% compared to 38.1% in Q4 FY26.
Projects, capex and execution
Incurred capital expenditure of INR 74.5 crore (addition to fixed assets) during the quarter to support infrastructure and operational expansion.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Integrated CareSeed's NCQA-certified Forecast and Harvest platforms to strengthen capabilities in HEDIS reporting, chart abstraction, and Medicare Advantage quality analytics.
Reported early positive momentum behind Sagility Synchrony, reinforcing the strategic shift toward integrated, AI-led operating models.
09 · Reported developments
What changed operationally
Added 27 new clients during the quarter, expanding the active client group base to 109.
Ranked 11th among India's 100 Best Companies to Work For 2026 by Great Place to Work and recognized as a Major Contender in healthcare CXM and RCM PEAK Matrix assessments.
10 · Pressure points & risks
What is not going smoothly
Statutory minimum wage revisions in Karnataka and Telangana created additional cost headwinds, impacting employee benefits and gratuity provisions.
11 · Items worth noticing
The line items that can distort a quick read
Recorded an exceptional item of INR 151 crore towards past service costs for gratuity and compensated absences resulting from statutory minimum wage hikes.
Incurred a forex loss of INR 28.3 crore during the quarter driven by foreign exchange hedging positions.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Generated strong operating cash flow of INR 316.1 crore, representing a 69.9% conversion rate on reported EBITDA.
Days Sales Outstanding (DSO) stood at a healthy 80 days at the end of the quarter.
Capital allocation & funding
Maintained a robust financial position with net debt declining further, supported by strong cash and cash equivalents (including investments) totaling INR 967.4 crore.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
CareSeed Acquisition
Completed the acquisition of CareSeed on June 11, 2026, to expand mid-market reach and add specialized HEDIS analytics capabilities.
Reported update
ESG and Workplace Awards
Recognized by ET Edge as one of the Best Organizations for Women in addition to high employee rankings.
14 · Previous-quarter changes
What changed since the previous quarter
Transitioned from high seasonal revenue concentration in Q4 FY26 due to Open Enrollment to baseline steady-state delivery volumes in Q1 FY27.
15 · Key Q&A
The quarter, answered directly
What does Sagility do?
Sagility Limited is a specialized healthcare operations partner that provides technology-led business process management, clinical services, and administrative support to U.S. healthcare payers, providers, and pharmacy benefit managers.
What is the clearest takeaway from Q1 FY27?
Sagility delivered a strong operational performance in Q1 FY27, recording revenue from operations of INR 1,963.5 crore, representing a robust year-on-year growth of 27.6% (15.2% in constant currency terms). Organic YoY revenue growth stood at an impressive 27.3%.
What drove revenue or demand?
Secured $35.3 million of steady-state ACV driven by expansion within existing clients and rising contributions from FY26 new client wins.
What mattered most for margins or profitability?
Statutory minimum wage hikes enacted in Karnataka and Telangana created an immediate employee benefit cost pressure of INR 70 crore during the quarter.
What changed operationally beyond the headline numbers?
Total employee count reached 47,307 at the end of Q1 FY27, an increase of 18.5% year-on-year.
What are the main pressure points disclosed for the quarter?
Statutory minimum wage revisions in Karnataka and Telangana created additional cost headwinds, impacting employee benefits and gratuity provisions.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
CareSeed Integration: Monitor the cross-selling progress and integration milestones of the 26 newly acquired CareSeed health plan clients.
- 02
Wage Impact Mitigation: Track management's ongoing operational adjustments and pricing strategies to offset the full-year margin impact of minimum wage revisions in Karnataka and Telangana.
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