Sagility India Limited
SAGILITY • Annual Report Analysis
Full Analysis Report
AI-Generated Report: This analysis was generated by StockRead AI and may contain inaccuracies or omissions. It is intended for informational purposes only and does not constitute financial advice. Please conduct your own independent research and consult a qualified financial advisor before making any investment decisions.
Annual Report Disclosure Summary: Sagility Limited (SAGILITY)
Date: April 21, 2026
Sector: Healthcare Business Process Management (BPM)
Current Price: ₹42.40
Executive Summary
Sagility Limited (NSE: SAGILITY) reported revenue of ₹4,753 crore and a net profit of ₹539 crore for FY2025. The company operates as a technology-enabled Business Process as a Service (BPaaS) provider, specializing in the U.S. healthcare market for payers (insurers) and providers. Key operations include member enrollment, claims processing, and clinical management. The FY2025 annual report discloses a client retention rate of 95% and a Cash Flow from Operations (CFO) to Net Profit ratio of 2.25x. The company maintains a cash buffer equivalent to 2.6 months of operating expenses and discloses contingent tax liabilities of ₹1,410 crore. This document presents data disclosed in the company's FY2025 Annual Report. All benchmarks referenced are publicly available industry standards. This is not investment advice.
Business Profile
Business Model & Revenue Structure
Sagility operates as a technology-enabled Business Process as a Service (BPaaS) provider for the U.S. healthcare industry. The company’s revenue is derived from providing services to U.S. health insurance companies (Payers) and hospitals (Providers). Services include the management of Medicare Advantage plans, insurance claims processing, provider network verification, and clinical management.
The company recently disclosed the "Synchrony" alliance, which integrates technology platforms for enrollment and plan launches. According to the annual report, the company employs over 48,500 staff trained in U.S. healthcare regulations, including HIPAA and CMS (Centers for Medicare & Medicaid Services) standards.
Market Position and Delivery Model
The company utilizes a global delivery model with operations in India and the Philippines to service U.S.-based clients. In the healthcare BPM landscape, the company operates alongside other listed entities such as Inventurus Knowledge Solutions and Firstsource Solutions. The company’s service mix is primarily focused on the "Payer" segment of the healthcare value chain.
Operational Strategy
The company is currently implementing a "RISE 3.0" 1,000-day plan focused on AI-driven automation and machine learning for claim adjudication. For the FY2025 period, the annual report discloses a revenue increase of 17.2% and a net profit increase of 136%.
Key Financial Metrics — Above Reference Benchmarks
The following metrics from the FY2025 annual report exceed standard industry reference benchmarks:
- Cash Conversion Ratio: The reported CFO is ₹1,214 crore against a Net Profit of ₹539 crore, resulting in a ratio of 2.25x. [EDUCATIONAL NOTE: The CFO/PAT ratio measures the proportion of accounting profit realized as actual cash. A ratio above 1.0 indicates that cash inflows from operations exceed reported net income.]
- Operating Profit Margin (OPM): Reported at 24.31%. Reference benchmark for IT/BPM services: >15%.
- Debt-to-Equity Ratio: Reported at 0.1x. Reference benchmark: <1.0x.
- Interest Coverage Ratio: Reported at 10.22x. Reference benchmark: >5.0x.
- Client Retention: Reported at 95% for the fiscal year.
Key Financial Metrics — Below Reference Benchmarks
The following metrics from the FY2025 annual report are below standard industry reference benchmarks:
- Cash Survival/Runway: The company’s liquid cash reserves represent 2.6 months of operating expenses. Reference benchmark for service firms: >6 months.
- Current Ratio: Reported at 1.39x. Reference benchmark: >1.5x. The annual report discloses trade receivables of ₹1,266 crore.
- Contingent Liabilities: Disclosed at ₹1,410 crore, primarily related to tax disputes. This represents approximately 26% of the company's Net Worth.
Governance Disclosures — Checklist
| Criterion | Disclosed Fact (FY2025 Annual Report) | Reference Benchmark |
|---|---|---|
| Board Independence | 55% of the Board consists of Independent Directors. | Minimum 50% for professionally managed firms. |
| Promoter Pledging | 0.0% of promoter shares are pledged or encumbered. | 0.0% |
| Managerial Remuneration | 1.71% of Net Profits. | Statutory limit is 11%; Industry benchmark <5%. |
| Family Representation | Zero family members of promoters on the Board or in KMP roles. | Professional management standard. |
| Promoter Holding | Planned reduction from 82% toward 51% disclosed in filings. | Minimum 26% for special resolution control. |
Valuation Multiples — Reference Data
The following market data is sourced from public exchange filings as of April 21, 2026:
- Price-to-Earnings (PE) Ratio (TTM): 23.4x
- Price-to-Book (P/B) Ratio: 2.24x
- EV/EBITDA: 12.2x
- Dividend Yield: 0.18%
- PEG Ratio: 0.23
- 52-Week Range: ₹35.82 – ₹57.90
Peer Reference Multiples (Source: Exchange Data):
- Inventurus Knowledge Solutions PE: >36x
- Sector Average PE (Healthcare BPM): 28.4x
- Sector Average P/B: 3.7x
Material Disclosures & Contingencies
- Tax Litigation: The company discloses ₹1,410 crore in contingent liabilities related to Indian tax demands. Source: Notes to Accounts, FY2025 Annual Report.
- Receivables Concentration: Trade receivables are reported at ₹1,266 crore. Source: Balance Sheet, FY2025 Annual Report.
- Promoter Shareholding: A reduction in promoter (EQT) stake from 82% to 51% is part of the disclosed capital structure transition. Source: Shareholding Pattern Filings.
- Liquidity Position: Cash and cash equivalents provide a 2.6-month operating runway. Source: Cash Flow Statement and Management Discussion & Analysis.
- Regulatory Environment: Operations are subject to U.S. Medicare Advantage funding levels and CMS Star Ratings. Source: Risk Management Section, Annual Report.
Key Disclosures to Review in Next Filing
- □ Trade Receivable Days: As reported in the Notes to Accounts to monitor collection cycles from U.S. health plans.
- □ Promoter Holding Pattern: As disclosed in quarterly exchange filings to track the progress of the EQT stake reduction.
- □ Operating Profit Margin (OPM): As reported in the Segment Results to monitor the impact of automation on service delivery costs.
- □ Status of Contingent Liabilities: Any updates on tax dispute resolutions as disclosed in the "Contingent Liabilities" note.
Annual Report Data Summary
The FY2025 annual report for Sagility Limited discloses revenue of ₹4,753 crore and a net profit of ₹539 crore, representing a year-on-year growth of 17.2% and 136% respectively. The company’s CFO/PAT ratio stands at 2.25x, and the operating margin is 24.31%. The governance checklist confirms a 55% independent board and zero promoter pledging. Material contingencies include ₹1,410 crore in tax-related claims and a current ratio of 1.39x. Valuation multiples as of April 21, 2026, include a TTM PE of 23.4x and a P/B of 2.24x, compared to a sector average PE of 28.4x. Reference industry benchmarks are provided alongside each metric in the sections above.
IMPORTANT NOTICE: This document is a structured presentation of data disclosed in Sagility Limited's FY2025 Annual Report and publicly available exchange filings. It is produced by stockread.in for informational and educational purposes only. All benchmarks referenced are standard industry metrics sourced from publicly available financial literature. This document does not constitute a research report, investment advice, a buy/sell/hold recommendation, or any form of securities analysis as defined under the SEBI (Research Analysts) Regulations, 2014. stockread.in is not a SEBI-registered Research Analyst. Users are strongly advised to consult a SEBI-registered Investment Advisor or Research Analyst before making any investment decision. Past financial performance is not indicative of future results.