Synopsis:
In Q1FY26, Sagility India Ltd. reported strong year-over-year growth, driven by a healthy profit margin and got recognition for providing exceptional healthcare IT services. Following the stock price hit 10% Upper-Circuit.
A Small-cap, healthcare-focused IT company stock is in the spotlight today after the announcement of its Q1FY26 financial results. Read the article below for a detailed look at its performance and insights from the management on the future growth prospects.
With a market capitalization of Rs. 21,650 crore, the shares of Sagility India Ltd were trading at Rs. 46.65, up 10 percent from its previous closing price of Rs. 42.39.
Q1FY26 Results
Sagility India Ltd reported Rs. 1,539 crore in revenue for the first quarter of FY26, a moderate increase of 25.8 percent over the Rs. 1,223 crore for the same period in FY25. However, from Rs. 1,568 crore in Q4 FY25, revenue decreased by about 1.85 percent sequentially.
The Company’s operating profit for Q1FY26 was Rs. 346 crore increased by 78.35 percent year over year from Rs. 194 crore in Q1FY25, whereas it declined by 7.24 percent compared to Rs. 373 crore in Q4FY25.
The consolidated net profit for the first quarter of FY26 was Rs. 149 crore, which was 17.99 percent lower than the Rs. 183 crore reported in the previous quarter but has sharply increased by 566.4 percent from the Rs. 22 crore in Q1 FY25.
Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 0.32 in Q1 FY26 from Rs. 0.05 in Q1 FY25 but was lower than Rs. 0.39 in Q4 FY25.
As of Q1FY26, Sagility employed 39,917 people across 33 delivery centers in 5 countries. The company won the “Most Preferred Workplace FY26” award from Marksmen Daily and was named a Leader by Avasant in the Healthcare Payer and Clinical & Care Management Business Process Transformation 2025 RadarView.
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Management View
Ramesh Gopalan, MD and Group CEO, stated that Sagility entered FY26 with strong momentum and resilient growth despite regulatory changes. He emphasized strengthening client relationships, BroadPath’s seamless integration, and the company’s emphasis on using automation and artificial intelligence to boost productivity and results for US healthcare clients.
According to Group CFO Sarvabhouman Srinivasan, the benefits of the BroadPath integration, effective delivery, and cost control helped FY26 start off with strong revenue momentum and stable margins. He placed a strong emphasis on long-term value creation, strategic investments, and strong cash generation.
About the company
Sagility is a technology-enabled solutions provider with a focus on healthcare that helps partners, payers, and providers in the US improve care quality, operations, and cost effectiveness. With over 20 years of experience, it serves five of the top ten U.S. health insurers through global delivery centers in India, the Philippines, the U.S., Jamaica, and Colombia.
At the moment, the Company’s P/E stands at 31.4x, lower than industry average of 31.9x. Its ROE and ROCE are 7.30 percent and 9.48 percent indicating company financial performance. Its Debt to Equity ratio stands at 0.17.
Written by Akshay Sanghavi
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