Sagility Limited has informed the stock exchanges that the Deputy Commissioner of Income Tax, Circle 6(1)(1) – Bengaluru, has issued a rectification order regarding the tax demand for Assessment Year 2023-24. The order, dated May 8, 2026, revises the previous demand downward following an assessment passed under Section 154 read with Section 143(3), Section 144C(3), and Section 144B of the Income Tax Act, 1961.

The communication, received by the company on May 18, 2026, outlines that the income tax demand has been adjusted from Rs 100,00,36,187 to Rs 56,68,06,083. Both figures include interest. The adjustment pertains to the financial year 2022-23. The authority made transfer pricing adjustments in the returned income amounting to Rs 189,50,16,208, which led to the revised demand.

Company Response and Appeal

In response to the rectified assessment order, Sagility Limited has stated that it believes the demand is not maintainable. Based on the advice of its tax advisors, the company filed an appeal on May 12, 2026. The appeal was submitted before the Commissioner of Income Tax (Appeals) under the provisions of the Income Tax Act, 1961, challenging the adjustments made in the order.

Financial Impact

Sagility Limited has disclosed that the rectified assessment order has no material impact on its financials, operations, or other activities. The company confirmed that it has taken the necessary steps to contest the demand through the appellate process.

Details of the Order

The specifics of the rectification order and the associated demand are detailed in the table below:

Sagility Limited's Board of Directors approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The statutory auditors issued unmodified audit opinions on both sets of results. The consolidated performance reflects robust growth across revenue, profitability, and cash generation, driven by strong performance in the company's U.S. healthcare-focused verticals. Additionally, the Board approved the 'Sagility Limited – Employee Stock Options and Performance Stock Units Scheme 2026' (ESOS 2026), subject to shareholder approval via postal ballot. The video recording of the investor/analyst webinar held on May 12, 2026, at 7:30 p.m. (IST), to discuss the audited financial results for the quarter and year ended March 31, 2026, is available on the company's website at https://sagility.com/investor-relations/quarterly-results/ . Pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, newspaper advertisements for these results were published in Financial Express and Vishwavani News on May 14, 2026.

FY26 Consolidated Financial Performance

For the financial year ended March 31, 2026, Sagility delivered strong top-line and bottom-line growth. Consolidated revenue from operations grew 29.1% year-on-year to ₹71,929 million (US$ 814.0 million), with organic year-on-year growth of 20.1% (15.0% in constant currency terms). Reported net profit rose 71.5% to ₹9,248 million, with a net profit margin of 12.9%. Profit before tax stood at ₹12,389 million, up 63.0% year-on-year, at a margin of 17.2%. On an adjusted basis, Adjusted EBITDA reached ₹18,200 million (US$ 206.0 million) at a margin of 25.3%, and Adjusted PAT grew 39.5% to ₹11,306 million (US$ 127.9 million) at a margin of 15.7%. The company reported operating cash flow of ₹12,030 million and free cash flow of ₹10,108 million.

The following table summarises the full-year consolidated financial performance:

Q4 FY26 Quarterly Highlights

For the quarter ended March 31, 2026, consolidated revenue from operations was ₹20,243 million (US$ 222.1 million), representing 29.1% year-on-year growth (22.2% in constant currency terms) and 2.7% sequential growth. Organic year-on-year growth stood at 25.8% (19.4% in constant currency terms). Q4 EBITDA came in at ₹4.85 billion versus ₹3.73 billion in the same quarter of the prior year, with an EBITDA margin of 23.94% compared to 24.00% year-on-year. Adjusted EBITDA for the quarter was ₹5,036 million (US$ 55.2 million) at a margin of 24.9%, while Adjusted PAT stood at ₹3,069 million (US$ 33.6 million) at a margin of 15.2%. The reported net profit for Q4 FY26 was ₹2,577 million, up 41.2% year-on-year, at a margin of 12.7%. Operating cash flow for the quarter was ₹5,327 million, with a conversion rate of 104.6%.

The table below presents the quarterly consolidated performance across key metrics:

Balance Sheet, Dividend, and Capital Allocation

As of March 31, 2026, Sagility's consolidated total assets stood at ₹126,011 million, up from ₹110,507 million in the prior year. Total equity increased to ₹96,591 million from ₹83,361 million. Current borrowings stood at ₹5,776 million, while non-current borrowings were nil. Cash and cash equivalents were ₹3,579 million, with additional investments of ₹3,359 million and bank balances of ₹2,100 million. The Board has recommended a final dividend of ₹0.10 per equity share of ₹10 each for FY26, subject to shareholder approval at the ensuing Annual General Meeting (AGM). The record date and dividend payment date will be communicated in due course.

Analyst Views

Following the FY26 results, leading brokerages have maintained a positive outlook on Sagility. Nomura maintains a Buy rating with a target price of ₹58, citing better-than-expected revenue growth and EBITDA margins, confidence in achieving early double-digit growth in FY27, and conservative management guidance with potential upside. Nomura also expects around 12% revenue growth across FY27–28. Jefferies similarly maintains a Buy rating, raising its target price to ₹54. Jefferies highlighted revenue growth beating estimates, driven by strong hunting and mining engines, healthy client additions, double-digit growth in top accounts, and Broadpath cross-sell synergies. However, Jefferies noted margin and profit misses due to a one-time bonus and higher tax provisions, while expecting an 18% EPS CAGR over FY26–29.

The table below summarises the latest analyst ratings: