SAGILITY - Sagility India

📊 NSE: SAGILITY 🏢 Miscellaneous 📅 Last Updated: 12/14/2025 12:38

💰 Financial Performance

Revenue Growth by Segment

H1 FY26 revenue grew 25.5% YoY in INR terms (21.4% in constant currency); the company serves both Payer and Provider segments, with the Payer segment including 6 of the top 10 US Payers.

Geographic Revenue Split

100% of revenue is derived from the U.S. healthcare industry, making the company entirely dependent on the North American market.

Profitability Margins

Adjusted PAT margin improved to 14.6% in FY25 from 12.4% in FY24; Reported PAT margin increased to 9.7% in FY25 from 4.8% in FY24, driven by higher EBITDA and lower interest costs.

EBITDA Margin

Adjusted EBITDA margin was 26.4% in FY25 (up from 24.1% in FY24); the company has increased its FY26 guidance to close to 25% despite margin dilution from the BroadPath acquisition.

Capital Expenditure

Planned capital expenditure of approximately INR 200 Cr per annum for FY2025 and FY2026 to support technology investments and site expansions.

Credit Rating & Borrowing

Ratings upgraded to [ICRA]BBB (Stable)/[ICRA]A3+; unsecured borrowings reduced to INR 817 Cr in FY25 from INR 1,933.5 Cr in FY24 following debt-to-equity conversion.

⚙️ Operational Drivers

Raw Materials

Specialized Healthcare Labor (44,185 employees) and IT Infrastructure/Software Licenses represent the primary cost components.

Import Sources

Talent is sourced from India (accounting for ~40% of the employee base), Philippines, Colombia, Jamaica, and the USA.

Key Suppliers

Sagility B.V. (Promoter financing) and Global Loan Agency Services Australia Nominees (Security Agent for lenders).

Capacity Expansion

Current headcount of 44,185 employees; added 4,300 people in H1 FY26 and 10 new sites in FY25 to support business growth.

Raw Material Costs

Employee costs are the primary driver; annualized attrition remained steady at 26.3% in H1 FY26, consistent with the previous year.

Manufacturing Efficiency

SLA compliance rate maintained above 95%, reflecting high operational execution and delivery efficiency.

Logistics & Distribution

Not applicable for service-based BPM operations.

📈 Strategic Growth

Expected Growth Rate

21%

Growth Strategy

Achieving 21% growth through the integration of BroadPath to access the mid-market segment, leveraging GenAI to drive operational efficiencies and maintain ~25% EBITDA margins, and expanding clinical services and pharmacy benefit management.

Products & Services

Healthcare BPM services including claims processing, clinical management, pharmacy benefit management, and member enrollment/acquisition services.

Brand Portfolio

Sagility, BroadPath, DCI (Devlin Consulting Inc), and BirchAI.

New Products/Services

Expansion into tech-led BPaaS (Business Process as a Service) and GenAI-integrated healthcare solutions to enhance client engagement.

Market Expansion

Strategic entry into the mid-market segment through the BroadPath acquisition to broaden the client base beyond large Payers.

Market Share & Ranking

Serves 6 of the Top 10 healthcare Payers in the United States, indicating a strong market position in the consolidated Payer industry.

Strategic Alliances

Capability-led growth through the acquisitions of DCI, BirchAI, and BroadPath to strengthen healthcare domain leadership.

🌍 External Factors

Industry Trends

The US healthcare BPM industry is evolving towards tech-led BPaaS and automation; Sagility is positioning itself as a tech-led provider using GenAI.

Competitive Landscape

Operates in a consolidated Payer market with high barriers to entry; expanding into the mid-market to diversify competition.

Competitive Moat

High entry barriers due to complex US licensing (TPA) and regulatory requirements (HIPAA/HITRUST), combined with high client stickiness (95%+ SLA compliance).