Sagility Ltd. share price target

Sagility’s practices are designed to manage and improve critical healthcare operations across the payer and provider ecosystem. These capabilities span the full healthcare value chain, combining deep domain expertise with operational execution to deliver measurable outcomes.

We initiate coverage on Sagility with BUY and 12M forward TP of Rs55, at 18x Sep-28E adjusted EPS, implying an upside of 20%.

Sagility reported a slight beat on I-Sec’s Q1FY27 revenue growth estimate and an in-line EBITDA margin. Revenue growth was led by the payer segment, as the provider segment’s traction has slowed over the last two quarters.

Sagility’s 1QFY27 revenue rose 15.2% YoY in CC (beat on estimates) and INR revenue stood at INR19,635m (est: 18,860m), rising 27.6% YoY.

We raise our revenue estimates by 0.8%/2.7%/4.7% for FY27E/FY28E/FY29E, factoring in CareSeed consolidation and sustained revenue momentum. However, we revise our EPS estimates by -6.7%/-1.8%/+1.8% for FY27E/FY28E/FY29E to incorporate the ~120bps FY27 wage-related margin headwind. While near-term margins may remain under pressure, CareSeed enhances the company's quality and care-management capabilities while expanding its mid-market client base. We maintain our BUY rating with a revised TP of Rs 58 (earlier Rs 61). At 17.1x FY27E EPS, valuations remain attractive with scope for re-rating. We remain positive on...

Sagility hosted its first analyst meet (on 25th Mar’26). It highlighted that AI continues to be a key growth driver, woven into most of its solutions and platforms.

Create domain specific agentic AI solutions to expand TAM Sustain revenue momentum while maintaining margins We attended Sagility's Investor Day, where management outlined how US healthcare policy changes and AI adoption are reshaping its business, and how the company is turning these headwinds into growth opportunities. Policy-driven margin pressures on payer clients are accelerating the shift toward cost-saving outsourcing, where Sagility's human in the loop agentic solutions, built on two decades of domain expertise across both payers and providers, can reduce client costs and effort by ~30%...

Sagility Ltd. is a healthcare-focused, technology-enabled solutions provider primarily serving U.S. health insurers (payers), along with hospitals, physicians, and medical device companies (providers). Headquartered in Bengaluru, the company operates 33 delivery centers across India, the U.S., and other global markets. In Q3FY26, ~90% of its revenue...

Growth strategies are clearly anchored around: cost transformation driven by demand from US payers; capability-led differentiation, including AI.

Sagility’s 3QFY26 revenue rose 29.1% YoY in Constant Currency (CC), higher than our estimate of 21% YoY CC. EBIT margin stood at 19.7%, and adj. PAT came in at INR3.2b (up 7.3% QoQ and 23.0% YoY), well above our estimate of INR2.8b.

Sagility India Ltd. is a healthcare-focused, technology-enabled solutions provider, serving primarily U.S. health insurers (Payers) and, to a lesser extent, hospitals, physicians, and medical device companies (Providers). Headquartered in Bengaluru, it operates 33 centres across India, the U.S., and other global markets. In Q1FY26, 88.4% of revenue was derived...

Sagility India reported 5.8% QoQ USD revenue growth (organic growth at 0.7%), slightly ahead of I-Sec estimate in Q4FY25. It met its guidance of delivering mid-teens growth in FY25 with 15% YoY USD print.

IPO Note - Sagility India Limited Issue Snapshot: Issue Open: November 05 November 07, 2024 Price Band: Rs. 28 30 (Employee discount of Rs 2 per share) *Issue Size: Up to Rs 2106.60 cr (Offer for sale of 70.21 crore shares) Reservation for: QIB atleast 75% eq sh Non-Institutional upto 15% eq sh ((including 1/3rd for applications between Rs.2 lakhs to Rs.10 lakhs)) Retail upto 10% eq sh Face Value: Rs 10 Book value: Rs 16.25 (June 30, 2024) Bid size: - 500 equity shares and in multiples thereof 100% Book built Issue

IPO NOTE