Sagility India: Faring Well On All Parameters In Q2 Says ICICI Securities Maintaining 'Buy'

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ICICI Securities Report

Sagility India Ltd. reported robust growth and Ebitda margin in Q2 FY26. QoQ growth was balanced across payers and providers.

Key positives in Q2 FY26 print include:

1. FY26 revenue growth and Ebitda margin guidance upgrade,

2. starting of dividend payout.

Notable ongoing business developments include:

1. debt reduction plan on track,

2. increased AI adoption along with net QoQ hiring of 4,268,

3. steady reduction in top-10 client concentration,

4. strong Ebitda margin expansion,

5. increased ACV.

We see more upside on Sagility faring well across all parameters. Reiterate Buy with a revised target price of Rs 65 (earlier target price Rs 62) on an unchanged one-year forward P/E of 26x.

We build in FY26E USD revenue growth of 21.2%, and FY25-28E revenue/ EPS CAGR of 16%/ 29.2%.

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