Sagility Limited (ISIN: INE0W2G01015) has reported robust financial results for the second quarter of fiscal year 2026, showcasing significant growth across key metrics and prompting an upward revision of its full-year guidance.

Financial Highlights

Sagility's consolidated revenues for Q2 FY26 reached INR 16,585 million ($189.4 million), marking a substantial year-on-year growth of 25.2% in INR terms and 20% in constant currency. The company's organic growth remained strong at 16% year-on-year in INR terms and 11.1% in constant currency.

The company's profitability showed impressive improvement, with adjusted EBITDA reaching INR 4,352 million ($49.8 million), representing a 25.6% year-on-year increase and a robust margin of 26.2%.

Segment Performance

Payer Business

• Grew 24.2% year-on-year
• Contributed 88.5% to total revenue

Provider Vertical

• Expanded 33.4% year-on-year
• Accounted for 11.5% of overall revenues

Client Acquisition and Business Wins

Sagility secured business from 24 existing clients and added five new clients during the quarter. The aggregate annual contract value (ACV) of new wins stood at $34 million, including contracts with:

• A regional Blues plan
• A provider of home medical supplies and equipment
• A regional healthcare organization offering integrated clinic-based services with a health insurance plan

AI and Technology Initiatives

The company has successfully deployed 25 distinct AI use cases across nine clients, demonstrating its commitment to leveraging advanced technologies for improved service delivery and operational efficiency.

Outlook and Guidance

Given the strong momentum, Sagility has raised its full-year guidance for FY2026:

• Constant currency revenue growth: Increased to 21% plus (from previous 20%)
• Adjusted EBITDA: Revised to close to 25% (from previous 24% plus)

Management Commentary

Ramesh Gopalan, Managing Director and Group CEO, stated, "Our focus on execution remains steadfast, supported by the ongoing strengthening of our AI and technology capabilities. These have helped us deepen engagement with existing clients and extend our reach into the mid-market space."

Dividend Announcement

The Board of Directors has approved an interim dividend of INR 0.05 per share, to be paid in Q3.

Sagility's strong performance in Q2 FY26, coupled with its strategic focus on AI and technology-driven solutions, positions the company well for continued growth in the evolving healthcare services landscape.

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:

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.