Sagility Ltd.Strong Q1 with Margins Intact Despite Wage Pressure

Sagility India delivered a robust first quarter for FY27 with revenue reaching ₹19,635 million, registering strong 27.6% year-on-year growth and 15.2% growth in constant currency terms.

Adjusted EBITDA grew 27.9% to ₹4,716 million with margins holding steady at 24%, while adjusted PAT surged 35.1% to ₹2,697 million, outpacing revenue growth. Sequential organic growth normalized for seasonality stood at an impressive 5.1% quarter-on-quarter. The company absorbed a significant 120 basis point headwind from statutory minimum wage revisions in Karnataka and Telangana, impacting 65-70% of its workforce, yet maintained margin guidance through favorable forex movements and operational efficiencies.

Management reaffirmed full-year guidance of low double-digit organic growth and 24-25% EBITDA margins. The CareSeed acquisition added 26 mid-market clients, expanding total active client groups to 109 and creating cross-sell opportunities. New business momentum remained healthy with $35.3 million in annualized contract value signed. Voluntary attrition improved significantly to 28.6% from 38.1% previously, while DSO strengthened to 80 days. Management emphasized growing traction in outcome-based managed service deals and end-to-end AI platform capabilities.