Sagility Ltd Q1 FY27 Results Analysis: PAT Jumps 46%, Attrition Improves

Sagility Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 1,963.48 Cr (+27.60% YoY) and PAT growth of +45.90% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Sagility delivered strong Q1 FY27 with 27.6% revenue growth and 45.9% PAT growth, driven by acquisitions and rupee tailwinds. Attrition normalized from 38.1% to 28.6%, and debt reduction continued. Margins were flat YoY, in line with seasonal expectations. The company is on track to meet its annual guidance of low double-digit CC growth and 24-25% EBITDA margin.

Key Investment Insights

Key Positives

• Revenue grew 27.6% YoY to Rs.1,963.48 Cr, highest Q1 growth rate in at least five quarters.
• Constant-currency revenue growth of 15.2% YoY was above the low double-digit annual guidance.
• Adjusted PAT grew 35.1% YoY, confirming strong earnings momentum.
• Voluntary attrition normalized to 28.6% from 38.1% in Q4.
• Finance costs fell 20.1% YoY, reflecting continued deleveraging.
• Client concentration continued to decrease: Top 10 clients at 84.1% TTM vs 90.5% in FY25.

Risk Factors

• Other expenses grew 44.8% YoY, fastest-expanding cost line, driven by pass-through costs, acquisition costs, and operational scale.
• Adjusted EBITDA margin was flat YoY at 24.0% and down sequentially from 24.9% in Q4, reflecting Q1 seasonality.
• Exceptional charge of Rs.15.09 Cr from minimum wage revision impacted reported PAT.
• Payer vertical concentration increased to 89.6% of revenue, up from 88.4% a year ago.