Sagility India’s Q1 FY26 Net Profit Surges 566% Year-on-Year

October 30, 2025 By usmanthotti business 2 min read

Sagility India’s Q1 FY26 Net Profit Surges 566% Year-on-Year

Sagility India has reported a remarkable 566.49% increase in its consolidated net profit for the first quarter of the fiscal year 2026, reaching ₹148.56 crore. This substantial growth is accompanied by a 25.8% rise in revenue from operations, totaling ₹1,538.94 crore for the quarter ending June 30, 2025.

Financial Performance Highlights

The company’s profit before tax (PBT) stood at ₹210.39 crore in Q1 FY26, marking a 196.3% increase compared to ₹71.01 crore in the same quarter of the previous fiscal year. Adjusted EBITDA for the quarter was ₹368.7 crore, up 26.44% from ₹291.6 crore in Q1 FY25, with an adjusted EBITDA margin of 24%, slightly higher than the 23.8% recorded in the corresponding quarter last year.

Operational Developments

As of March 31, 2025, Sagility India employed 39,917 individuals, with attrition rates improving to 27.6% in Q1 FY26 from 27.3% in Q1 FY25. The company successfully onboarded four new clients during the quarter, including a $12 billion regional Blues plan and a $5 billion specialty health system. Additionally, Sagility expanded its business with 18 existing clients and maintained long-term partnerships spanning 10 to 25 years.

Strategic Initiatives and Outlook

Sagility India has been investing in artificial intelligence (AI) and automation, with 18 live AI use cases such as Nurse Assist and Appeals Assist, and more than 15 others in development. The company has also expanded its capabilities through acquisitions, including BroadPath, BirchAI, and DCI. Management has guided for low-to-mid teens organic revenue growth and, factoring in the BroadPath acquisition, expects to deliver over 20% revenue growth in FY26 while sustaining EBITDA margins at 24%.

Analysts have responded positively to these developments. Angel One has assigned a ‘BUY’ rating on Sagility India with a target price of ₹60 per share, citing the company’s healthcare domain expertise, long-standing client relationships, rising profitability, strong cash generation, and AI-led transformation strategy as drivers of sustained growth and shareholder value creation.

However, potential risks include high client concentration, U.S. healthcare regulatory changes, elevated attrition, currency fluctuations, and a goodwill-heavy balance sheet resulting from acquisitions.