Sagility Limited raised its FY27 adjusted EBITDA margin guidance after posting a six-quarter high for the measure, while a brokerage lifted its target price as quarterly revenue grew 22.5%.
Revenue for the quarter ended Sept. 30, 2026, was ₹20,321 million ($212.6 million), up 22.5% in rupee terms from a year earlier. Organic revenue advanced 22.2% in rupee terms and 11.9% in constant currency, while total revenue grew 12.2% in constant currency, Sagility said.
Adjusted EBITDA rose 23% to ₹5,353 million, and its margin reached 26.3%. Sagility said that was its highest adjusted margin in six quarters. Reported EBITDA was ₹5,252 million, with a 25.8% margin. Reported profit after tax rose 13.3% to ₹2,842 million, while adjusted profit after tax gained 8.1% to ₹3,254 million.
Management lifted the FY27 adjusted EBITDA margin range to 25% to 26%, from 24% to 25%. It kept its outlook for low double-digit organic revenue growth in constant currency. Management linked the higher margin outlook to operating efficiencies and favorable foreign-exchange and geographic mix effects.
Motilal Oswal raised its target price to ₹57 from ₹54 and reiterated its Buy rating. Its report said revenue matched the brokerage's estimate, while reported profit after tax of ₹2,842 million was below its ₹3,032 million estimate. Motilal Oswal's EBITDA measure was ₹5,123 million, above its own estimate of ₹4,735 million.
To reach ₹57, the brokerage priced Sagility at 19 times the earnings per share it expects for FY28. Across FY26–28, its model has revenue growing at a 17% compound annual rate, EBITDA at 19% and profit after tax at 23%. It cited larger assignments from major clients, new customer wins, broader sales across services and acquisition benefits as factors behind those projections.
Sagility said it secured $40.2 million in annual contract value during the quarter from 31 existing clients and one new client. Management also expects revenue from the Annual Enrollment Period and Open Enrollment to be slightly lower year over year. The company's investor presentation shows those revenue streams concentrated in the fiscal third and fourth quarters.
