Sagility Ltd Q2 FY27 Results Analysis: Revenue Jumps 22.5%, EBITDA Margin Beats Guidance
Sagility Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 2,032.10 Cr (+22.50% YoY) and PAT growth of +13.30% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 22, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 2,032.10 Cr (+22.50% YoY) |
| PAT (Q2) | Rs. 284.21 Cr (+13.30% YoY) |
| EBITDA margin | 25.80% (-270 bps YoY) |
| EPS (Q2) | Rs. 0.61 (+15.10% YoY) |
| Market cap | Rs. 21,248.55 Cr |
| CMP | Rs. 45.39 |
Quarter Snapshot
Q2 FY27 revenue grew 22.5% YoY with adjusted EBITDA margin of 26.3% exceeding the 24-25% guidance range and reversing a four-quarter declining trend. The company reached a net cash position ahead of its end-FY27 debt-repayment target, raised the interim dividend 200%, and reduced client concentration. Provider-side growth of 8.2% YoY lags Payer momentum, with the Chirok Health acquisition pending to strengthen that vertical.
Key Investment Insights
Key Positives
- Revenue grew 22.5% YoY to Rs.2,032.10 Cr (+12.2% CC, organic CC +11.9%)
- Adjusted EBITDA margin of 26.3% exceeded the 24-25% FY27 guidance range and reversed a four-quarter declining trend from the 24.0% Q1 FY27 trough
- Reported PAT grew 13.3% YoY to Rs.284.21 Cr; adjusted PAT grew 8.1% YoY to Rs.325.40 Cr
- Payer segment grew 24.4% YoY to Rs.1,826.20 Cr, now 89.9% of revenue
- Net cash position of Rs.104.79 Cr achieved vs net debt of Rs.206.75 Cr at March 2026; Rs.149.50 Cr NCDs redeemed July 3, 2026
- Client concentration improved: top 3 clients at 60.1% of TTM revenue vs 66.2% in FY25; active client groups at 105 vs 82 at FY26-end
- Voluntary attrition fell to 25.7% from 28.6% in Q1 FY27 and 38.1% in Q4 FY26
- Interim dividend raised 200% to Rs.0.15 per share; H1 FCF of Rs.517.56 Cr
Risk Factors
- Provider segment growth lagged at 8.2% YoY vs Payer's 24.4%
- Other income declined 77.9% YoY to Rs.12.85 Cr on a high prior-year forex-gain base, muting adjusted PAT growth to 8.1% vs reported 13.3%
- Other expenses grew 34.2% YoY, partly from M&A-related costs and CareSeed consolidation
- Goodwill of Rs.6,608.54 Cr represents ~51.4% of total assets
- Standalone PAT declined 11.6% YoY, reflecting wage revisions concentrated in the Indian entity
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.