SAGILITY INDIA FALL 4% DESPITE STRONG Q2

Shares of Sagility India declined nearly 4% on October 23, a day after the healthcare technology services provider reported strong September-quarter results, with revenue and EBITDA registering year-on-year growth of more than 22%. The company posted a 22.5% year-on-year increase in revenue. EBITDA rose 23.4% to. Sagility’s adjusted EBITDA margin also improved, prompting the company to raise its FY27 adjusted EBITDA margin guidance to 25–26%. According to brokerage estimates, revenue stood at $213 million, marking 11.9% year-on-year growth in constant currency terms and broadly meeting expectations. However, the EBITDA margin of 26.1% exceeded the brokerage’s estimate of 24%, expanding by 230 basis points quarter-on-quarter and 110 basis points year-on-year. Diluted earnings per share increased 15% year-on-year. The company has maintained its FY27 guidance for low double-digit organic revenue growth in constant currency terms, while revising its margin outlook upwards. Analyst expects Sagility to deliver low- to mid-teens revenue growth in FY27. Believes that higher business volumes from existing key clients, new customer additions, cross-selling opportunities and acquisition synergies will support the company’s growth trajectory. Over FY26–FY28, Experts projects compound annual growth rates of 17% in revenue, 19% in EBITDA and 23% in profit after tax. Despite the strong quarterly performance and improved margin outlook, Sagility India shares traded lower on October 23.