Sagility Ltd Q4 FY25 Earnings Analysis
Published 8 Jul 2026 | IT - Services | Market Cap: ₹20.5K Cr
Price
₹42.4
Market Cap
₹20.5K Cr
P/E Ratio
20.0
How does Sagility Ltd rank in IT - Services?
Compare Sagility Ltd against every IT - Services company this quarter on revenue, margins and earnings-call signals.
Sagility Ltd — Quarterly revenue & net profit
Reported quarterly figures (₹ Cr). Latest: revenue ₹2.0K Cr, net profit ₹258 Cr.
Full financials →Earnings Summary
Expect low- to mid-teens organic revenue growth in constant currency for FY '26 and beyond. Sagility expects low- to mid-teens organic revenue growth on a constant currency basis for FY '26 and beyond.
📊 Revenue & Sales Performance
- →Expect low- to mid-teens organic revenue growth in constant currency for FY '26 and beyond.
- →With the BroadPath acquisition fully annualized, total constant currency growth likely to exceed 20% in FY '26.
- →Growth driven by deepening wallet share with existing large clients and expanding into mid-market health plan clients.
- →Continued focus on capability-focused acquisitions for targeted growth, though inorganic revenue not included in guidance.
- →Non-top three clients growing even faster (15-20%+), contributing to diversified growth.
- →Strong deal pipeline with multiple new clients and active conversations, indicating sustained growth momentum.
- →No anticipated macroeconomic headwinds impacting growth expectations over the next 12 months.
📈 Profitability & Margins
- →Sagility expects low- to mid-teens organic revenue growth on a constant currency basis for FY '26 and beyond.
- →Including the BroadPath acquisition, total constant currency growth is likely to exceed 20% for FY '26.
- →Adjusted EBITDA margin guidance is maintained at 24% to 25% for at least the next 12 months, with some dilution (~120-150 bps) expected due to BroadPath.
- →The company aims for steady-state margins around 24-25%, continuing to invest in technology and client-facing teams.
- →Earnings Per Share (EPS) for FY '25 grew significantly: reported EPS increased by 119.3%, and adjusted EPS grew 27.7% year-over-year.
- →Strong operating cash flows (~90% of EBITDA) and healthy balance sheet support sustained profit growth.
- →No debt-funded repayments planned; all debt repayments will be made from operational cash flow, supporting financial stability.
🏗️ Capital Expenditure Plans
- →The company continues to invest in technology, especially focusing on AI and GenAI, piloting several use cases with existing clients and exploring healthcare-specific solutions such as utilization management and provider data management.
- →Technology investments are emphasized as critical for margin resilience and operational efficiency.
- →Strategic investments also include M&A activity, with ongoing pursuit of acquisitions that add technology or services capabilities catering to payers and providers.
- →Integration of the BroadPath acquisition is a key priority before pursuing other deals.
- →There are no mentions of inorganic revenue being included in guidance; organic growth remains the focus.
- →No explicit mention of traditional capex spend; focus is rather on technology capability building and strategic acquisitions funded through operational cash flow.
💰 Fundraising & Capital Structure
- →The company plans to repay existing debt using operationally generated cash and will not borrow to repay debts.
- →There is no intention for promoter-level selling or offer for sale (OFS) to repay debt.
- →No equity funding is planned in the short term to fund debt repayment.
- →Debt repayments are structured with no prepayment option currently available.
- →The company successfully completed the cash-funded acquisition of BroadPath without borrowing.
- →No immediate plans for new debt or equity fundraising were mentioned in the discussion.
📋 Order Book & Pipeline
- →The company is actively looking at all deals that come to the table.
- →They will pursue good opportunities available at reasonable valuations.
- →The deal pipeline remains strong with ongoing active conversations.
- →They are in the final stages of discussions with at least three additional clients.
- →There is no perceived slowdown in deal closures or pipeline despite macroeconomic uncertainties.
- →Profitability pressures on clients have increased their propensity to engage with Sagility, potentially increasing opportunity volume.
- →The company continues to add new clients; eight new clients were added in the reported year, including two or three in the last quarter.
- →BroadPath acquisition has further diversified the client base and growth opportunities.
Key Metrics
Frequently Asked Questions
What were Sagility Ltd Q4 FY25 results?
Expect low- to mid-teens organic revenue growth in constant currency for FY '26 and beyond. Sagility expects low- to mid-teens organic revenue growth on a constant currency basis for FY '26 and beyond.
What is Sagility Ltd share price analysis?
Sagility Ltd currently shows a neutral. The stock trades at a P/E of 20.0 with a market cap of ₹20,537 Cr. Investors should review the full earnings analysis for detailed insights.
Is Sagility Ltd planning capital expenditure?
The company continues to invest in technology, especially focusing on AI and GenAI, piloting several use cases with existing clients and exploring healthcare-specific solutions such as utilization management and provider data management. - Technology investments are emphasized as critical for margin resilience and operational efficiency. - Strategic investments also include M&A activity, with ongoing pursuit of acquisitions that add technology or services capabilities catering to payers and providers.
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This analysis is AI-generated based on publicly available earnings data and concall transcripts. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.