Sagility hosted a conference call on October 22, 2026. In the conference call the company was represented by Mr Ramesh Gopalan –MD & CEO and Mr. Abhishek Kayan, Deputy Chief Financial Officer.

Key takeaways of the call

The company is pleased with the progress that it has made through the first half of FY 2027. The business momentum has been strong. The company is expanding within its existing relationships.

Clients added in FY 2026 are growing well, and the pipeline is robust.

Q2FY2027

Consolidated revenue for Q2 came in at Rs 2032.1 crore, or US $212.6 million, representing a yoy  growth of 22.5% in rupee terms and 12.2% in constant currency terms.

Q2 revenues has increased to Us $212.6 million from US $207.8 million in Q1, reflecting continued growth in the company’s steady-state business.

Excluding the CareSeed acquisition, organic revenue growth remains strong at 22.2% in rupee terms and 11.9% in constant currency.

In Q2 FY 2027, payers accounted for 89.9% of revenue and providers for 10.1%.

Margins:

Operating profitability remains strong, with Q2 adjusted EBITDA at Rs 535.3 crore, or US $56 million, representing a yoy growth of 23%, with a margin of 26.3%, the highest in six quarters.

The company delivered its highest adjusted EBITDA margins in six quarters, improving from 24% in Q1 to 26.3% in Q2. This improvement reflects stronger operating leverage, disciplined cost management, delivery efficiencies, and favourable foreign exchange movements. This was despite the continued impact of statutory wage revisions and the annual compensation increases.

Improvement in margin was on account operating efficiency, a favourable foreign exchange tailwind and a better geographic mix.

H1FY2027:

Consolidated revenue stood at Rs 3995.6 crore, or US $420.4 million, representing a yoy growth of 25% in rupee terms and 13.7% in constant currency.

H1 adjusted EBITDA was Rs 1006.9 million, or US $105.9 million, growing 25.2% yoy  with a margin of 25.2%.

Debt:

The company continues to remain on track to repay its outstanding debt fully during 2027, which will further strengthen the balance sheet and reduce its finance costs.

Order book:

Deal ACV increased 18.2% year-on-year to US $40.2 million, with wins across 31 existing clients and 1 new client

Employee:

Employee strength stood at 51,486 at the end of Q2.

Quarterly voluntary attrition improved to 25.7% from 28.6% in Q1 FY 2027 and was also lower than in Q2 FY 2026.

Quarter 2 reflects the full quarter impact of about Rs 14.8 crore compared to about Rs 7.0 crore in Quarter 1.

Minimum wage increases in Karnataka and Telangana continue to affect costs and could limit margin expansion.

Clients:

At the end of Q2, the company had 105 active client groups, and for the first time, each of its top 10 client groups are now more than $20 million in revenue on a trailing 12-month basis.

Acquisition:

The CareSeed acquisition announced last quarter is now integrated into its clinical practice. It strengthens the company’s healthcare quality capabilities, particularly in the Medicare Advantage market, and gives the company access to a broader base of mid and small-sized clients.

On October 21, the company announced the acquisition of Chirok Health LLC. Providers are a clear growth focus for the company, and Chirok fits in line with that strategy. Chirok’s mid-cycle revenue solutions are a natural complement to Sagility’s proven front-end and back-end revenue cycle offerings, helping Sagility generate improved financial and operational outcomes for health providers from patient access through final payment.

Chirok is a specialized provider of clinical documentation improvement solutions, along with medical coding, risk adjustment, and HEDIS and quality services.

The trailing 12-month revenue up to September 2026 was $13 million, with an adjusted EBITDA margin of 35.8% and a net revenue retention rate of 115%.

Chirok has 750 employees, most of them in India and a few of them in the U.S.

The consideration paid was $20 million that was paid up front, with an ability to earn an additional US $12.35 million, payable subject to achievement of certain revenue targets over CY 2027 and CY 2028.

Chirok acquisition goal is to accelerate provider growth and raise its share of total revenue.

Chirok must be integrated smoothly for Sagility to capture the expected revenue synergies and cross-selling benefits

Conflict between payers and providers: There is no inherent conflict between payers and providers as the company helps both sides run operations more efficiently and does not bypass traditional payer-provider relationships.

Sagility’s provider business remains smaller than its payer business, but management said it intends to accelerate growth there. The company reorganized its go-to-market structure and added a dedicated provider team.

AI disruption in mid-cycle revenue cycle management: AI will affect the space, but it is less likely to fully replace human-led work in more complex areas such as inpatient coding.

Deal:

The company won a large payment integrity engagement from a Big Ten health plan covering over 10 million members. This win demonstrates the company’s growing ability to secure larger, higher-value engagements. The deal has a minimum potential of over US $10 million in ACV and could possibly be much more.

In payment integrity deals, which are contingency-based linked to payment recovery, revenue will build progressively over time.

Other managed services deals are also progressing well.

AI is now central to transformation conversations with clients.

The new combined provider capability should allow the company to pursue larger deals over time.

Larger transformation deals now involve more senior decision-makers and longer sales cycles.

Dividend:

The board has approved an interim dividend of INR 0.15 or 15 paise per share.

Guidance:

The company expects OE and AEP revenue to be slightly lower than last year. But in spite of this, the company is continuing with its guidance of low double-digit organic revenue growth in constant currency for FY 2027.

The company raised its FY 2027 adjusted EBITDA margin guidance from its earlier 24%-25% to a new 25%-26%.

The wage impact is already built into guidance.

Outlook:

Demand remains healthy, and clients are more deliberate in how they make decisions. Clients are prioritizing investments that address immediate business pressures and show a clear path to measurable value and this is creating opportunities across its core business, managed services, and AI.

The company’s pipeline includes more managed service deals and a healthy set of opportunities with Blues and other mid-market plans.

The first half is typically the lower half of the company’s annual revenue cycle, with AEP and open enrolment revenues concentrated in Q3 and Q4. In second half, AEP and open enrollment volumes will begin to contribute revenue.

Management expects AEP and open enrolment revenue to be slightly below last year, which could weigh on near-term growth.

Management Commentary:

Commenting on the results announcement, Ramesh Gopalan, Managing Director and Group CEO said, “Our performance in the first half of FY27 reflects broad-based momentum across the business. Our pipeline is healthy with larger deals and a growing set of opportunities with Blues and mid-market plans. Our AI solutions are gaining traction, with new SOW wins and more solutions moving into production. CareSeed is now integrated into our Clinical Practice, adding depth to our healthcare quality capabilities and our recent acquisition of Chirok will accelerate our growth in the provider segment, strengthening our end-to-end provider RCM capabilities. As we enter the second half, our priority is disciplined execution through the AEP and Open Enrolment season, while investing in the capabilities that will drive our next phase of growth.”

Srinivas Mattapalli, Group Chief Financial Officer added, “Q2 FY27 was a strong quarter with healthy growth, robust cash generation and our highest adjusted EBITDA margin in six quarters, reflecting disciplined execution, operating leverage and delivery efficiencies. Our revenue trajectory demonstrates the resilience of the operating model as we enter the seasonally stronger H2. Underscoring our confidence in the business and our commitment to shareholder returns, the Board has declared an interim dividend of ₹0.15 per share, up from ₹0.05 in the previous interim. We will continue to invest selectively in technology, AI and domain-led growth to create long- term value for our stakeholders.”