Record YoY growth, sequential softness from seasonal & wage pressure ahead

Delivered result confirms ₹1963.5 Cr with exact 27.6% YoY, organic 14.9% const curr

Delivered OPM 21.6%; adjusted EBITDA 24% matches guidance range, excluding one-time wage charge

Delivered reported PAT margin 11.0% (+45.9% YoY); adjusted excludes ₹151M wage exceptional charge

Q1 at 24%; achieved via 100+ bps FX benefit offsetting 40 bps wage impact. Full-year 120 bps impact ahead.

Steady-state revenue $197.3M → $207.3M = 5.07%; sequential reported -3.0% matches seasonality claim

CareSeed had 30 clients; 4 common, so 26 new additions confirmed; revenue figures stated

Strengthens quality capabilities (HEDIS, Medicare Advantage) and mid-market footprint. $5.1M CY25 revenue at 31.4% EBITDA. Cross-sell upside with Sagility's platform.

Prior guidance silent on this; now explicit headwind. 65-70% of headcount in Bangalore & Hyderabad exposed. Management says will mitigate via efficiency + state expansion.

Strategic priority but timing uncertain. No specific contracts won yet. Upside if timelines compress; downside if deals slip to FY28.

28.6% quarterly vs 38.1% Q4 (+/- seasonality); wage increase may stabilize talent retention. Monitoring needed post-hike.

65-70% headcount in K&T; 15-20% elsewhere (TN, Indore, Mumbai). Mitigating via state expansion & operational efficiency; full mitigation takes 12-18 months.

5% is not a baseline; broad-based growth across 15-20 clients min per qtr from existing clients + FY26 new adds. Mix still includes effort-based deals. Managed services take time, timing is constraint not capacity.

One client in cohort moving large volume onshore → offshore; recurring work but margin accretive, revenue deflating. Not permanent.

Min wage impact was only 1 month in Q1; full quarter impact ahead (double). Hedges at lower rates. Want visibility post-Q2 before narrowing range.

No specific timelines; depends on capabilities needed & market availability. Clinical, quality, care management, provider services, tech all of interest. RCM targets had high valuations, not pursued.

Expect similar 6% of total revenue from seasonality (vs 3% pre-BroadPath). Specifics not known until Sept when plans finalize their bids.

Insourcing to US likely; offshoring to us is cost-saving, so unlikely. AI deflation is real expectation; Everest research shows 70% claim AI adoption but only 10% see measurable returns. We position as outcome-based partner committing to cost takeout via workflow redesign.

Q1 achieved 14.9% const curr organic, within guidance range. Underpinned by cost pressures driving payer demand; 14-15% appears achievable midpoint.

Q1 at 24% despite 40 bps min wage (only 1 month) via 100+ bps FX benefit. Full-year 120 bps wage impact + FX hedge expiry headwinds. Offset via efficiency initiatives & state expansion; upper end possible if FX holds.

Q1 capex ₹75 Cr for infrastructure; investment in tech, AI, automation capabilities ongoing. No specific FY27 capex guidance given.

120 bps FY27 impact in Karnataka & Telangana where 65-70% of headcount resides. Recurring. Cascading wage pressure beyond minimum wage also hitting margins. Estimated to take 12-18 months to fully mitigate.

Strategic shift to outcome-based managed service deals central to guidance. Currently 3-6 month sales cycles in active conversations but no wins yet. Success depends on client capability to redesign workflows & Sagility's ability to commit cost targets.

Q1 benefited from 100+ bps FX tailwind due to rupee depreciation & favorable hedge timing. Hedges taken at much lower rates; as benefit wears off in Q2-Q3, headwind reverses. Full-year guidance depends on FX rates holding.

Top-3 client % growing; top-4-5 cohort showing soft TTM growth. One major client moving large work onshore→offshore (recurring but revenue-reducing). Suggests portfolio becoming more concentrated & subject to volume deflation.

Clients expect AI to deliver cost reductions but Everest research shows 70% adopted AI but only 10% achieved measurable improvements. Risk that failed implementations turn into deflation requests or insourcing attempts. Sagility's value prop is outcome-based commitment, but deal complexity/risk is high.