Sagility Boosts Revenue Growth Forecast to 21%, Sets Adjusted EBITDA Target at 25%
Sagility Limited has revised its revenue growth forecast from 20% to 21% and set an adjusted EBITDA forecast at 25%. This comes after strong Q2 results, with revenue reaching ₹16,585.00 million (25.20% YoY growth) and adjusted EBITDA at ₹4,352.00 million (25.60% YoY growth). Half-year performance shows revenue of ₹31,974.00 million (25.50% YoY growth) and adjusted PAT of ₹5,007.00 million (62.40% increase). The company is focusing on AI-enabled automation and process transformation to help clients reduce operational costs.
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Sagility Limited (NSE: SAGILITY, BSE: 544282), a leading provider of technology-enabled business solutions for the U.S. healthcare industry, has announced an upward revision of its financial projections.
Revised Forecasts
The company has increased its revenue growth forecast from 20% to 21%. Additionally, Sagility has set its adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) forecast at 25%.
Strong Q2 Performance
The revised guidance comes on the heels of Sagility's robust second-quarter results:
| Metric | Q2 Value | YoY Growth |
|---|---|---|
| Revenue | ₹16,585.00 million | 25.20% |
| Adjusted EBITDA | ₹4,352.00 million | 25.60% |
| Adjusted EBITDA Margin | 26.20% | - |
| Adjusted PAT | ₹3,010.00 million | 84.00% |
| Adjusted PAT Margin | 18.10% | - |
The company's performance demonstrates significant year-over-year growth across key financial metrics.
Half-Year Highlights
For the first half of the fiscal year, Sagility reported:
- Revenue of ₹31,974.00 million, up 25.50% year-over-year
- Adjusted EBITDA of ₹8,039.00 million, with a 25.10% margin
- Adjusted PAT of ₹5,007.00 million, representing a 62.40% increase
Strategic Focus
Ramesh Gopalan, Managing Director and Group CEO, commented on the results, stating, "Our performance through the first half of the fiscal year underscores Sagility's ability to sustain healthy growth in a changing marketplace. As our clients continue to deal with profitability pressures, we are bringing our domain expertise and transformational capabilities to help them reduce cost of operations."
The company is evolving its deal structures to emphasize outcomes and measurable cost reductions, leveraging AI-enabled automation and process transformation to deliver these results.
Financial Management
Sarvabhouman Srinivasan, Group Chief Financial Officer, highlighted the company's financial discipline: "Our margin profile continues to be robust, alongside strong growth. This is a result of disciplined cost management initiatives and operational efficiencies. We continue to generate strong operating cash flows and maintain a healthy balance sheet while progressively lowering debt."
Looking Ahead
With its updated forecasts, Sagility plans to invest further in technology and AI capabilities, focusing on building an AI-ready healthcare-centric workforce to meet evolving market demands.
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