Sagility aims to achieve 21%+ revenue growth (including Broadpath), revised upwards from 20%+ earlier; 25%+ Ebitda growth guidance for FY26 (excluding other income), also revised upwards from 24% earlier. This guidance upgrade is a strong growth indicator as no other IT peers have upgraded the higher end of their guidance.
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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:
FY26 revenue growth and Ebitda margin guidance upgrade,
starting of dividend payout.
Notable ongoing business developments include:
debt reduction plan on track,
increased AI adoption along with net QoQ hiring of 4,268,
steady reduction in top-10 client concentration,
strong Ebitda margin expansion,
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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