Sagility Q2 FY27: revenue +22.5% YoY, adjusted PAT just +8.1% as margins compress

Sagility's consolidated Q2 FY27 (quarter ended 30 September 2026) revenue came in at ₹2,032 Cr, up 22.5% YoY (12.2% in constant currency) and 3.5% QoQ, broadly in line with the "low double-digit CC organic growth" guidance management reaffirmed last quarter — organic CC growth printed at 11.9%, right at the guided band. Reported PAT of ₹284.2 Cr grew 13.3% YoY, but the company's own normalised metric — Adjusted PAT of ₹325.4 Cr (ex other income/FX, ex intangible amortisation and the Karnataka/Telangana minimum-wage statutory impact) — grew only 8.1% YoY, materially behind the revenue line. Basic EPS was ₹0.61 (+13.3% YoY); adjusted EPS ₹0.70 (+8.1% YoY). Consolidated is the primary operating basis here; standalone (parent-only) PAT of ₹97.9 Cr on ₹575.2 Cr revenue reflects the holding-company structure and is not comparable to the consolidated operating picture.

The margin bridge is the real story of the quarter. Adjusted EBITDA margin was 26.3% (CFO Srinivas Mattapalli called it the "highest adjusted EBITDA margin in six quarters"), essentially flat YoY (26.2%→26.3%) and comfortably above the 24-25% range management guided to despite flagging a 120bps minimum-wage headwind. But reported EBITDA margin compressed to 25.8% from 28.5% a year ago, and Adjusted PAT margin fell to 16.0% from 18.1% — a 210bps YoY compression below the EBITDA line, pointing to higher amortisation/finance/tax drag this year than the add-backs recovered. QoQ, margins expanded sharply (reported PAT margin 11.0%→14.0%) largely because Q1 FY27 carried a ₹15.09 Cr minimum-wage exceptional charge that Q2 did not; that QoQ jump (PAT +31.1%) is a base-effect artefact and should not be read as sequential acceleration.

The stock went into the print at ₹45.39, down 1.2% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records.

New ACV of $40.2M from 31 existing clients + 1 new logo — active client groups up to 105 (+28 in H1 FY27 incl. CareSeed); headcount 51,486 (+16.5% YoY)

No third-party consensus estimate specific to this quarter could be sourced, so vsStreet is unknown; broader brokerage sentiment on the stock has been constructive (Buy-rated coverage with price targets around ₹65 seen in recent notes, per web search), but that isn't a quarter-specific estimate. Against the prior concall's cautiously-optimistic tone and confident management framing, this quarter is a confirmation rather than a surprise: revenue is tracking guidance and EBITDA margin is ahead of it, but normalised bottom-line growth lagging topline growth by ~14 points tempers the headline. Segment-wise, Payer revenue (₹1,826 Cr) grew 24.4% YoY while Provider (₹205.9 Cr) grew a slower 8.2% YoY — the rationale behind the Chirok Health acquisition. The Board also raised the interim dividend to ₹0.15/share from ₹0.05 in the previous interim, which CFO Mattapalli tied explicitly to "confidence in the business." CEO Ramesh Gopalan's framing — "broad-based momentum," CareSeed now integrated into Clinical Practice, Chirok set to "accelerate growth in the provider segment" — is consistent with the segment data but doesn't address the adjusted-PAT lag directly.