By Ks Badri Narayanan
Copyright thehindubusinessline
Target: ₹60
CMP: ₹46.48
Sagility India is a healthcare-focused BPM and digital transformation company with 25+ years of expertise, serving 77 active clients including leading U.S. payers, providers, PBMs, and technology platforms.
In Q1 FY26, Sagility onboarded 4 new clients, a $12B regional Blues plan, a $5B specialty health system, a pharmacy benefit manager (PBM), and a technology TPA firm, while also expanding business with 18 existing clients and sustaining long-term partnerships of 10–25 years. $32 M (potential steady state ACV) of new business & expansion won in Q1 FY26
Sagility is investing heavily in AI and automation, with 18 live AI use cases (e.g., Nurse Assist, Appeals Assist, Contract Validation) and 15+ in development, and has expanded capabilities through BroadPath, BirchAI, and DCI acquisitions.
We assign a Buy rating on Sagility with a target price of ₹60, derived from a 26× P/E multiple on FY27E EPS. The rating reflects the company’s deep healthcare domain expertise, long-standing client relationships, rising profitability, strong cash generation, and its strategic focus on AI-led transformation, which together reinforce visibility of sustained growth and shareholder value creation.
Sagility’s key risks include high client concentration, US healthcare regulatory changes, elevated attrition, currency fluctuations, and a goodwill-heavy balance sheet from acquisitions, which could affect growth and profitability.
Published on September 18, 2025
