Sagility Q2 FY27: Revenue at Rs 2,032 Cr, EBITDA Margin Guidance Raised

What just happened

Sagility reported its Q2 FY27 performance with revenue growing 22.5% year-on-year to Rs 2,032.1 crore. The company also successfully closed the acquisition of Chirok Health LLC for an upfront consideration of $20 million.

Why this matters

Investors are seeing significant operational efficiency, as adjusted EBITDA margins reached 26.3%—the highest in six quarters. The company successfully shifted from a net debt position of Rs 196.2 crore at the end of FY26 to a net cash position of Rs 112.7 crore by September 2026, signaling a healthier balance sheet.

The backstory

Management noted that the company’s AI strategy is successfully driving productivity gains, helping to offset operational costs. The acquisition of Chirok Health is designed to fill a gap in their provider-segment expertise, complementing their existing focus on payer-side revenue cycle management.

What changes now

Management has raised the FY27 adjusted EBITDA margin guidance to a range of 25%–26%, up from the previous 24%–25%. This move reflects confidence in sustaining efficiency despite wage-related competitive pressures.

Risks to watch

Investors should monitor the upcoming AEP and open enrollment season, as management expects revenue contributions to be approximately 100 bps lower than the previous year. Additionally, scaling the provider segment—which currently accounts for only 10% of total revenue—will be a key execution test for the new acquisition.

Context metrics

• Adjusted PAT: Rs 325.4 crore
• New Deal ACV: $40.2 million
• Revenue growth (constant currency): 12.2%

What to track next

The focus remains on the integration of Chirok Health and whether the company can maintain its improved margin profile throughout the remainder of the fiscal year.