Following the adjusted Ebitda margin expansion in Q2 to 26.3%, the highest in six quarters, Sagility's management raised its FY27 adjusted EBITDA margin guidance from 24–25% to 25–26%. This upgrade was supported by operating leverage, delivery efficiencies, and favorable forex movements.
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Motilal Oswal Report
Domestic brokerage firm expects Sagility Ltd. to deliver low-to mid-teens growth in FY27. In the long term, increased volume of work from top clients, new logo additions, cross-selling, and synergy from acquisitions will drive its revenue/Ebitda/PAT compound annual growth rate of 17%/19%/23% over FY26-28.
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The brokerage has valued the stock at 19 times price-to-earnings estimate for FY28 earnings per share to arrive at a target price of Rs 57, and has reiterated its Buy rating on the stock.
Sagility's Q2 FY27 revenue grew 22.5% YoY to Rs 20,321 million (in line), with organic revenue growth of 22.2% YoY (11.9% in CC terms). Ebitda stood at Rs 5,123 million (estimate Rs 4,735 m), with a margin of 25.2% vs brokerage estimate of 23.3%, above estimates.
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PAT stood at Rs 2,842 million (estimate Rs 3,032 m), below estimates. However, excluding other income, PAT beat Motilal Oswal's expectations. Overall, revenue/Ebitda/PAT grew 22.5%/23.4%/13.3% YoY.
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