Sagility reported strong Q2 FY26 results, with revenue up 25.2% in INR terms and 20% in constant currency. The company is leveraging GenAI to drive efficiency and offer innovative solutions. Due to strong performance, Sagility increased its FY26 revenue growth guidance in constant currency to 21% plus and adjusted EBITDA guidance to close to 25%. The company declared an interim dividend of ₹0.05 per share.
Q2 FY26 Performance Highlights
Sagility announced a strong performance for Q2 FY26, demonstrating continued momentum and growth. Key highlights include:
- Consolidated revenues of ₹16,585 million (US$189.4 million), representing a year-on-year increase of 25.2% in INR terms and 20% in constant currency.
- Organic growth of 16% year-on-year in INR terms and 11.1% in constant currency.
- Payer business grew 24.2% year-on-year, accounting for 88.5% of total revenue.
- Provider vertical expanded 33.4% year-on-year, contributing 11.5% to overall revenue.
- Adjusted EBITDA of ₹4,352 million (US$49.8 million), a year-on-year increase of 25.6%, with an EBITDA margin of 26.2%.
- Adjusted profit after tax of ₹3,010 million, up 84% year-on-year.
H1 FY26 Results
The company also reported strong results for the first half of fiscal year 2026:
- Revenue growth of 25.5% in INR terms and 21.4% in constant currency.
- Revenues of US$369.9 million (₹31,974 million).
- Organic growth of 16.9% in INR terms and 13.2% in constant currency.
- Adjusted EBITDA of ₹8,039 million, a growth of 26% year-on-year.
- Adjusted PAT of ₹5,007 million, a growth of 62.4% year-on-year.
Increased FY26 Guidance
Based on its strong performance, Sagility has increased its financial outlook for the full fiscal year 2026:
- Revenue growth in constant currency is now expected to be 21% plus.
- Adjusted EBITDA guidance is close to 25%.
Strategic Developments and New Wins
- As of September 30, 2025, Sagility has 82 active clients.
- Secured business from 24 existing clients and added 5 new clients during the quarter.
- Aggregate annual contract value (ACV) won from new and existing clients stands at US$34 million.
- The company focuses on cross-selling to BroadPath clients and has already submitted several proposals for the first half of 2026.
GenAI Integration and Transformation
Sagility is actively integrating GenAI into its solutions to drive efficiency and deliver greater value to clients. Key strategies include:
- Adopting a consulting-led approach to help clients modernise traditional delivery frameworks.
- Harnessing next-generation capabilities and GenAI-based models to drive efficiency at a large scale.
- Deploying 25 distinct Al use cases across nine clients.
Capital Allocation and Dividends
- The Board approved an interim dividend of ₹0.05 or 5 paise per share, to be paid in Q3.
- The company will continue to fund investments in Al and tech capabilities.
Employee and Industry Recognition
- At the end of the quarter, Sagility had 44,185 employees across five countries.
- Annualized attrition remains steady at 26.3%.
- Sagility has earned the ‘Great Place to Work’ certification in India.
- Sagility Philippines has been honoured as the winner of the Asia CEO Awards 2025, as the Service Excellence Company of the Year.
Source: BSE