Sagility Q1 FY27: consolidated PAT ₹216.8 Cr, +46% YoY; net margin expands as growth holds

Sagility opened FY27 strong on a consolidated basis — the lens that matters for a group whose operating business sits almost entirely in its US subsidiaries. Consolidated revenue of ₹1,963.5 Cr was essentially in line with the ~₹1,969 Cr the street was modelling, and profit outpaced the topline: reported PAT of ₹216.8 Cr rose 45.9% YoY against 27.6% revenue growth. In constant currency, organic growth was 14.9% — comfortably ahead of the "low double-digit" organic guide management set on the May concall, so the quarter tracks, and arguably leads, its own outlook. The 3.0% sequential revenue dip is seasonality, not a slowdown: Q4 carried ₹226 Cr of OE/AEP seasonal revenue that structurally rolls off in Q1 and returns in H2, as management flagged. The profitability lift is a below-EBITDA story. Reported EBITDA margin held at 23.0% (23.1% a year ago) and Adjusted EBITDA margin of 24.0% sat at the floor of the guided 24–25% band, so the operating line itself was steady rather than expanding. Net margin rose to 11.0% from 9.7% largely because finance costs fell to ₹22.1 Cr from ₹27.4 Cr as the group deleverages — the ₹1,495 Cr NCD redemption on 3 July feeds directly into the debt-free-by-FY27 commitment. The reported PAT was struck despite a ₹15.1 Cr exceptional charge (a minimum-wage/labour-code past-service cost) with no year-ago equivalent — a drag, not a flatterer; on the company's own Adjusted PAT basis, which also normalises acquisition-related amortisation, underlying profit still grew 35.1%. Growth was broad-based: the Payer vertical (~90% of revenue) grew 29.3% YoY and Provider 14.4%, the active client base reached 109 with 27 additions including the CareSeed acquisition (closed 11 June, ~₹203 Cr provisional consideration, adding HEDIS/quality analytics), and $35.3M of steady-state ACV was booked. CFO Srinivas Mattapalli framed it as "a strong note… resilient profitability and robust cash generation," which the cash and net-profit lines support even though the operating margin was flat. The caveat readers will meet elsewhere: the standalone Indian entity shows revenue up 14.0% but PAT down 21.5% to ₹76.0 Cr — a genuine divergence, but one that reflects where the group books its US work rather than any deterioration; consolidated is the right lens. Into the rest of FY27, the checkpoints are the H2 return of seasonal OE/AEP revenue, whether Adjusted EBITDA margin can lift off the 24.0% floor toward the top of the guided range (management flagged forex-dependent upside), and continued deleveraging after the NCD redemption.