Sagility Limited announced robust financial results for the second quarter and first half of FY27. Q2 revenue surged by 22.5% to INR 20,321 million, with adjusted EBITDA growing 23%. The company also raised its full-year FY27 adjusted EBITDA margin guidance to 25%-26%, reflecting improved operating efficiencies and FX tailwinds. The acquisition of Chirok Health LLC was also completed, enhancing Sagility’s mid-revenue cycle capabilities.
Sagility Limited Reports Strong Q2 FY27 Performance
Sagility Limited has announced strong financial results for the second quarter and the first half of the fiscal year 2027. The company reported a consolidated revenue of INR 20,321 million (approximately USD 212.6 million) for Q2 FY27, marking a year-on-year growth of 22.5% in INR terms and 12.2% in constant currency. Excluding the recent CareSeed acquisition, organic revenue growth remained robust at 22.2% in INR terms.
Profitability and Margin Guidance Increase
Operating profitability remained strong, with Q2 adjusted EBITDA reaching INR 5,353 million (approximately USD 56 million), a 23% increase year-on-year, achieving a margin of 26.3%, the highest in six quarters. Adjusted Profit After Tax (PAT) for Q2 was INR 3,254 million (approximately USD 34 million), up 8.1% year-on-year, with a margin of 16%.
For the first half (H1) of FY27, revenue stood at INR 39,956 million (approximately USD 420.4 million), representing a year-on-year growth of 25% in INR terms and 13.7% in constant currency. H1 adjusted EBITDA grew 25.2% year-on-year to INR 10,069 million, with a margin of 25.2%.
Significantly, Sagility announced an increase in its full-year FY27 adjusted EBITDA margin guidance. The company is now guiding for margins between 25% and 26%, up from the previous guidance of 24% to 25%. This upward revision is attributed to strong operating efficiencies, a favourable foreign exchange tailwind, and a favourable geo mix.
Strategic Acquisitions and Future Outlook
The company also highlighted the completion of the acquisition of Chirok Health LLC, a specialized provider of clinical documentation improvement, medical coding, risk adjustment, and quality services. This acquisition is expected to enhance Sagility’s mid-revenue cycle capabilities and accelerate its growth in the provider segment. Chirok reported trailing 12-month revenue of approximately $13 million with an adjusted EBITDA margin of 35.8%.
Sagility continues to focus on growing its provider segment, aiming to increase its contribution to overall revenue. The company is investing in sales and marketing and leveraging AI to enhance its offerings. Despite some anticipated impact from the open enrollment season, the company maintains its guidance of low double-digit organic revenue growth for FY27 in constant currency.
Key Financial Highlights (Q2 FY27)
- Revenue: INR 20,321 million (up 22.5% YoY)
- Adjusted EBITDA: INR 5,353 million (up 23% YoY)
- Adjusted EBITDA Margin: 26.3%
- Adjusted PAT: INR 3,254 million (up 8.1% YoY)
- Adjusted PAT Margin: 16%
Key Financial Highlights (H1 FY27)
- Revenue: INR 39,956 million (up 25% YoY)
- Adjusted EBITDA: INR 10,069 million (up 25.2% YoY)
- Adjusted EBITDA Margin: 25.2%
- Adjusted PAT: INR 5,951 million (up 18.9% YoY)
- Adjusted PAT Margin: 14.9%
Source: BSE
