SAGILITYINDIA Q3 FY26 earnings call.
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Revenue
₹1,971.2 Cr
verification pending
Revenue YoY
35.7%
reported change
EBITDA
₹512.5 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Sagility India delivered an exceptional Q3 FY26 with consolidated revenues of INR 1,971 crore (up 35.7% YoY INR / 29.1% CC), driven by broad-based strength across payer and provider segments and a better-than-expected Medicare Advantage Open Enrollment season. Adjusted EBITDA stood at INR 512.5 crore at a 26% margin (+120bps YoY), while adjusted PAT of INR 322.9 crore grew 23% YoY. Management raised full-year constant currency revenue growth guidance to 22.5% from 21%+ previously, with 25% adjusted EBITDA margin guidance maintained. The top-10 client concentration declined to 84.6% from ~90.5% in FY25, supported by 7 of 12 new logos from mid/small markets. AI-driven use cases expanded to 32 across 10 clients. The Broadpath integration is largely complete on the delivery side, with cross-sell conversations expected to accelerate post-AE season. Key risks include ongoing pricing pressure from payers facing Medicare Advantage rate stagnation for CY27, margin headwinds from higher non-India delivery mix in AE-heavy quarters, and persistent client concentration risk given the 84.6% revenue share from top-10 accounts.
Colored figures show movement against the previous available record.
Guidance to track
- Revenue guidance in constant currency increased to 22.5% for FY26, up from 21%+ previously, driven by better-than-expected OE season performance. Organic growth projected at 13.8%.
- Adjusted EBITDA margin guidance maintained at 25% for full fiscal year despite Q3 delivering 26% due to expected seasonal mix headwinds in Q4.
- Management reaffirms confidence in low-to-mid teens organic revenue growth trajectory for the medium term, noting pipeline advances in outcome-based managed services constructs.
- Net debt continues to decline; management confirms debt will be fully repaid by FY27, enabling future M&A flexibility without additional borrowing.
Risks flagged
- CMS proposed changes indicate no rate increases for CY27 MA plans, which will take effect 12 months from now. This will intensify profitability pressure on payer clients and could translate to greater pricing demands and outsourcing acceleration—both a tailwind and headwind.
- Q3 saw a ~220bps margin headwind from higher share of US and non-India delivery locations due to AE seasonal activity. This structural mix risk could recur each H2 and limits margin expansion during high-growth quarters.
- Top-10 clients at 84.6% of revenue remains high. While declining, growth from small/mid-market clients will take years to meaningfully offset any disruption to large account relationships. Analyst Raj Vas raised this; management cited multi-year track record of top-client growth.
- Q3 benefited from exceptional OE season (~5.5% of FY26 revenue vs historical 3% baseline). Management acknowledged that Q3 over Q2 growth of 17% was driven by seasonality and Q4 will see sequential revenue decline as OE activity normalizes. No specific Q4 quantitative guidance provided.
Key quotes
- This has been an exceptional quarter for us. Our performance across payer and provider segments reflects the depth of our healthcare domain expertise and our ability to deliver consistently at scale.
- We've grown substantially in this quarter but our margins are flat compared to previous quarter. Bulk of the growth in revenues came in because of OE linked revenues and OE linked growth typically happens in US location and in other offshore locations but not in India. So in this quarter I had a higher share of non-India revenues.
- There is always margin pressure and in times of heightened profitability concerns at a client's end, there is going to be pressure. The answer to your question is can you deliver what the client wants in terms of cost reductions for them and still continue to maintain your margins? That's the balancing act that all of us have to do.
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