Sagility Q2 Revenue Up 22.5% YoY, Raises Margin Guidance

Revenue: INR 20,321 million ($212.6 million), representing year-on-year growth of 22.5% in INR terms and 12.2% in constant currency.
Organic Revenue Growth (excluding CareSeed acquisition): 22.2% in INR terms and 11.9% in constant currency.
Adjusted EBITDA: INR 5,353 million ($56 million), growing 23% year-on-year with margin of 26.3%.
Adjusted PAT: INR 3,254 million ($34 million), up 8.1% year-on-year with margin of 16%.
Operating Cash Flow: INR 3,182 million
Free Cash Flow: INR 2,760 million
Days Sales Outstanding (DSO): Improved to 78 days from 80 days in Q1 FY27

Revenue: INR 39,956 million ($420.4 million), representing year-on-year growth of 25% in INR terms and 13.7% in constant currency.
Adjusted EBITDA: INR 10,069 million ($105.9 million), growing 25.2% year-on-year with margin of 25.2%.
Adjusted PAT: INR 5,951 million ($62.6 million), growing 18.9% year-on-year with margin of 14.9%.
Operating Cash Flow: INR 6,343 million
Free Cash Flow: INR 5,176 million
OCF to Reported EBITDA Conversion: 64.9%

Employee Strength: 51,486 at end of Q2 FY27
Voluntary Attrition: Improved to 25.7% from 28.6% in Q1 FY27
Active Client Groups: 105
Revenue Mix: Payers 89.9%, Providers 10.1%
Deal ACV: Increased 18.2% year-on-year to $40.2 million
Deal Wins: Across 31 existing clients and 1 new client
Top Clients: All top 10 client groups now exceed $20 million in trailing 12-month revenue

Consideration: $20 million paid upfront, with potential earnout of up to $12.35 million subject to achievement of revenue targets over CY27 and CY28
Financials: Trailing 12-month revenue of $13 million with adjusted EBITDA margin of 35.8%
Net Revenue Retention Rate: Over 115%
Employees: 750+ employees, mostly in India with few in US
Business Focus: Specialized provider of clinical documentation improvement solutions, medical coding, risk adjustment, and HEDIS and quality services
Strategic Rationale: Complements Sagility's front-end and back-end revenue cycle offerings, enhancing end-to-end capability in RCM

Now integrated into clinical practice
Strengthens healthcare quality capabilities, particularly in Medicare Advantage market

Progressing from narrow AI use cases to end-to-end workflow transformation using agentic AI
Key solutions: SmarTec Appeals Assist, Nurse Assist, Claims Assist
Implementing Synchrony Claims Lifecycle (agentic workflow for claims adjudication) and Synchrony RCM Lifecycle (agentic solution for denials management)
AI helping develop solutions faster and align with client priorities

Net Cash Position: INR 1,127 million as of September 2026 (improved from net debt of INR 1,962 million at FY26 end)
Interim Dividend: Board approved INR 0.15 per share to be paid in Q3
Debt Repayment: On track to fully repay outstanding debt during FY27
Fixed Asset Additions: INR 1,168 million in H1 FY27
Acquisition Spending: INR 1,338 million in H1 FY27

Statutory Wage Revisions: Q2 reflected full quarter impact of approximately INR 148 million compared to INR 70 million in Q1
Annual Compensation Increases: Implemented as planned

Organic Revenue Growth: Maintaining low double-digit constant currency growth guidance for FY27
Adjusted EBITDA Margin: Raising guidance to 25-26% from previous 24-25%
AEP/Open Enrollment Impact: Expected to be slightly lower than last year (approximately 100 basis points lower than previous 6% of revenue)

Everest Group Elevate Honor for Voice of the Customer in Healthcare and Life Sciences Service Specialist
Avasant Leader in healthcare payer business process transformation
SmarTec Nurse Assist Solution won Stratus Awards for Cloud Computing
Ranked 57th in 100 Best Large Workplaces in Asia 2026 by Great Place to Work
Top 10 India's Best Places for Women in 2026
Great Place to Work certification for second consecutive year
Bronze Stevie Award for AI adoption with headcount growth in US
Golden Peacock Award for ESG